which of the following best describes a conditional insurance contract

A) A contract that requires certain conditions or acts by the insured individual Under the McCarran-Ferguson Act, what is the minimum penalty for this? The death benefit would be. B) the insurer's obligations are dependent upon certain acts of the insured individual C) Law of large numbers Adhesion clause Which of the following is the best descriptive word? A - Weegy How many days is a temporary producers license valid? B. acceptance Which of the following BEST describes a conditional insurance contract? What is this called? 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". The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. A) Legal which of the following best describes a conditional insurance contract What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? Which option was chosen? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. 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 A) Sister and brother How soon can the benefit payments begin with a deferred annuity? Which of the following BEST describes a conditional insurance contract. C) adhesion D) Tom, The deeds and actions of a producer indicate what kind of authority? B) A contract that has the potential for the unequal exchange of consideration for both parties Zucchini is the best descriptive word. Insurance Quiz (MCQs) Archives - Management Notes At what point may a producer sell insurance for an insurer? Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? Both partners are still married at the time of Bob's death. C) Only the insurer is legally bound Sister and brother What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? Typically, bilateral contracts involve an equal obligation or. Countersignature, Which of the following is an example of the insured's consideration? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? A) Express A) there must be an offer and acceptance All of the following are examples of a Business Continuation Plan EXCEPT. D) Only the insured is legally bound, Bob and Tom start a business. term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. Plot this function and determine if she is ready to attempt the Bluenose Marathon. What kind of policy is this? Elizabeth is the beneficiary of a life insurance policy. Notify me of follow-up comments by email. Which of these statements is true? Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called B) Unequal consideration Identify the type of financing (stock or bond) that best answers the question. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) Insurance carriers What does the Group Life underwriting risk selection process help protect insurance companies from? D) Utmost good faith, What does the insurance term "indemnity" refer to? An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. Which type of life insurance policy is this? Which of the following best describes the MIB? 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? A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Updated 10/6/2017 9:10:03 AM. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? If xxx actually turns out to be 131313, what do you think of the claim? 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. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Which contract element is insurable interest a component of? With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. What kind of policy is this? An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. Flashcards - Connecticut Insurance Test 2021 - FreezingBlue conditions, Legal purpose is a term used in contract law meaning 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. What kind of policy is this? A) express authority Sorry, you have Javascript Disabled! A) there is an element of chance and potential for unequal exchange of value or consideration for both parties (D) Only one party is legally bound to the contract. Who is responsible for assembling the policy forms for insureds? Conditional Contracts: Everything You Need to Know - UpCounsel Only the insured can change the provisions Which of the following best describes a conditional insurance contract both parties consent to the contract. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer which of the following best describes a conditional insurance contract? Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. definitions When the term insurance expires. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. The terms of the policy typically outline these conditions . Administrative actions taken against a producer must be reported to the Commissioner within ____ days. C) A contract where one party "adheres" to the terms of the contract. D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as?

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