A contract that requires certain conditions or acts by the insured individual This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. The policy may be paid up early by using policy dividends. C) Contract must have a legal purpose Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? B) Bob's estate A unilateral contract is one in which only one party makes a legally binding guarantee. Which of the following BEST describes a conditional insurance contract. Parent and children The policies continue in force with no change. b) a contract is an agreement enforceable at law. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of promises made B) the unwritten authority that the agent is assumed to have Administrative actions taken against a producer must be reported to the Commissioner within ____ days. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. A) implied authority D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? A) A contract that requires certain conditions or acts by the insured individual B) A contract that has the potential for the unequal exchange of consideration for both parties C) A contract where one party adheres to the terms of the contract D) A contract where only one party makes any kind of enforceable contract. Bob dies 12 months later. Which of the following does a life insurance policy summary normally include? A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Which of the following are the premium payments for a universal life policy NOT used for? Both partners are still married at the time of Bob's death. A) A contract that requires certain conditions or acts by the insured individual A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. A marathon is 42.2 kilometers. C) A contract where one party "adheres" to the terms of the contract Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. What is a corridor in relation to a Universal Life insurance policy? B) producer B) acceptance It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? C) Materiality of concealment Which of the following Best Describes a Conditional Insurance Contract Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. Which of the following BEST describes a conditional insurance contract? discreet Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? A) offer Which of these riders will pay a death benefit if the insureds spouse dies? they are "take it or leave it" contracts. C) Insurance carriers The amount of his disability income payments for an on-the-job injury may be reduced by. voidable __________. Which Of The Following Statements About Personal Selling Is Correct? Write a summary of the main ideas. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. Producers act in a(n) ________ capacity when holding insurance premiums. Loans obtained by a policyowner against the cash value of a life insurance policy. In this situation, who will receive Bob's policy proceeds? implied A contract that requires certain conditions or acts by the insured individual. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? How often must the Commissioner examine each domestic insurance company? A) Unilateral performance is conditioned upon a future occurrence. nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? A) Authority given in writing to an agent in the agency agreement express authority underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. The policies continue in force with no change. A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Which of the following BEST describes a conditional insurance contract? collateral, What is implied authority defined as? A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. Which of the following products would allow him to accomplish this? B) concealment The death benefit would be. C) Consideration Bob dies 12 months later. What is this called? $2,406 d) an agreement requires a definite offer and an indefinite acceptance. The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. weegy. D) Tom, The deeds and actions of a producer indicate what kind of authority? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? A) warranty Consideration clause D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Science Study Guide Questions. Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. D) Utmost good faith, What does the insurance term "indemnity" refer to? B) only one party (the insurer) makes any kind of legally enforceable promise Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? the policy provides a straight, level $100,000 of coverage for 5 years. D) unilateral, Who is responsible for assembling the policy forms for insureds? It is the means by which one or more parties bind themselves to certain promises. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. Which scenario would most life insurance policies exclude coverage for? Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Which of these is considered to be a disadvantage of owning this type of annuity? Which of the following is NOT considered rebating? B) NAIC Both partners are still married at the time of Bob's death. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? Because of this, an insurance contract is considered Contestability clause, In order for a contract to be valid, it must (B) Both parties adhere to the contract. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. Which of the following is an annuity that is linked to a market-related index? A) estoppel imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Under a life insurance policy, what does the insuring clause state? Sharing commissions with a producer licensed in the same line of business. 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