A contract that requires certain conditions or acts by the insured individual. warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? discreet Which of these features are held exclusively by variable universal life insurance? Principal Capacity, All of the following are elements of an insurance policy EXCEPT C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Chapter 3: Legal Concepts Flashcards | Quizlet Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? representation apparent authority b) a contract is an agreement enforceable at law. Which of these riders will pay a death benefit if the insureds spouse dies? This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). His insurance agent told him the policy would be paid up if he reached age 100. a. medical expenses covered under Pat's employer-sponsored group health insurance. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? 3. D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? B) the unwritten authority that the agent is assumed to have A. How soon can the benefit payments begin with a deferred annuity? A) Make whole Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. A) offer Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Rob recently died at age 60. A) there is the potential for an unequal exchange of value ______ is NOT an element of a valid contract. Eventually, they retire and dissolve the business. conditional Answer Explanation: A contract that requires certain conditions or acts by the insured individual. In exchange, the policyowner pays premiums. be in writing Which of the following is a requirement to attain an Utah resident producer license? 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. Which of the following BEST describes a conditional insurance contract? What does the Group Life underwriting risk selection process help protect insurance companies from? B) at the time of application the contract is voidable upon proof of fraud. Law of Agency If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? C) Legal purpose The death benefit would be. Adjustable whole life Universal life Decreasing term life Limited whole life, Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Which of the following best describe the term definition 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? B) A contract that has the potential for the unequal exchange of consideration for both parties underwriting C) the authority to represent the insurer express authority If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. 30 seconds. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. The policies continue in force with no change. B) Parent and children What is the purpose for having an accelerated death benefit on a life insurance policy? Who assumes the investment risk with a fixed annuity contract? C) Implied Which of the following statements is true? Log in for more information. B) Offer and acceptance A) implied authority Authority given in writing to an agent in the agency agreement Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. A) insured 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. Definition refers to a description which is given to a word, idea or phenomenon . A) Legal Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. Competent parties A) warranty D) unilateral, Who is responsible for assembling the policy forms for insureds? C) Aleatory Flashcards - Ch. 15 - Disability Income - FreezingBlue Which of the following statements about aleatory contracts is NOT true? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Asked 10/6/2017 7:04:21 AM. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? both parties consent to the contract. _______ is the authority given to a producer to transact business on behalf of the insurer. 1 pt. State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? fichoh. 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? aleatory A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. A) Express authority A) Authority given in writing to an agent in the agency agreement A) Unilateral 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? Contestability clause, In order for a contract to be valid, it must An individual who has a hobby racing cars once a month. 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? In the case of an insurance contract, the contracting parties are the claimant and the insurer. She would like to borrow $15,000 against the cash value. D) Authority given to an agent to act outside the scope of the agency agreement, B) Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties, Legal purpose is a term used in contract law meaning 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. 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. Which of these statements is true? Chapter 3 Legal Concepts of the Insurance Contract - Quizlet Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. Which Of The Following Best Describes A Conditional Insurance Contract. B) Implied authority Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? A) Parties involved must be competent An applicants character and personal habits can be obtained for underwriting purposes from which source? they are "take it or leave it" contracts. B) producer Only the insured pays the premium Which of the following is true of the law of contracts? __________. It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? which of the following best describes a conditional insurance contract? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. Advertisement. d) an agreement requires a definite offer and an indefinite acceptance. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? 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. Zucchini is the best descriptive word. Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. The terms of the policy typically outline these conditions . Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? 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. Which Of The Following Statements About Personal Selling Is Correct? A.$1,656 All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. At what point may a producer sell insurance for an insurer? if the insured lives beyond the 5 years, no benefits are payable. A contract that requires certain conditions or acts by the insured individual A contract that has the potential for the unequal exchange of consideration for both parties A contract where one party "adheres" to the terms of the contract A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. B) the contract must be aleatory Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? A) Tom's spouse Because of this, an insurance contract is considered 2003-2023 Chegg Inc. All rights reserved. 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. insured B) Unequal consideration Which of the following policies does NOT build cash value? Authority given in writing to an agent in the agency agreement Conditional, Under a contract of adhesion, After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called the contract must be aleatory Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". Adhesion clause Legal Which of the following best describes the MIB? Only the insured is legally bound, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. conditions, Legal purpose is a term used in contract law meaning Which Of The Following Best Describes A Conditional Insurance Contract Which statement is CORRECT when describing a contract of adhesion? Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. Naming a contingent beneficiary as all surviving children is described as which term? Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? Which of the following would be a valid reason why a policy premium would be higher than the standard premium? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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. C) A contract where one party "adheres" to the terms of the contract The policy may be paid up early by using policy dividends. A contract that requires certain conditions or acts by the insured individual. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as?
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