which of the following best describes a conditional insurance contract Typically, bilateral contracts involve an equal obligation or. 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? Which of the following BEST describes a conditional insurance contract? promises made 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? 2. Variable life insurance and Universal life insurance are very similar. Offering payment of approved claims within 30 days after affirming liability. Who assumes the investment risk with a fixed annuity contract? Can be converted to permanent coverage without evidence of insurability Coverage can be different for each child Premiums on this rider are not required until the limiting age is reached Increases the policy's overall cash value, Which type of policy combines the flexibility of a universal life policy with investment choices? Required fields are marked *. Expert answered| selymi |Points 23307|. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. B) conditional Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. Which scenario would most life insurance policies exclude coverage for? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. B) issuance of the policy
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 Express AzAnswer team is here with the right answer to your question. Eventually, they retire and dissolve the business. Which of these features are held exclusively by variable universal life insurance?
Aleatory Contract Definition, Use in Insurance Policies - Investopedia Which type of multiple protection policy pays on the death of the last person? D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. 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 Only the insurer is legally bound Which of the following is the best descriptive word? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. 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. What kind of policy is this? When initial premium is collected and policy is issued. B) only an offer Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. 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)? Countersignature, Which of the following is an example of the insured's consideration? 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. Which Of The Following Best Describes A Conditional Insurance Contract, 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. A) Unilateral This rider is called a(n). Authority given in writing to an agent in the agency agreement Which of these is considered to be a disadvantage of owning this type of annuity? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Only the insurance company has legal obligations. A) voidable B. What would happen if a life insurance applicant is given a conditional receipt? (C) Both parties exchange goods of equal value. Parent and children A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Sharing commissions with a producer licensed in the same line of business. Which of the following BEST describes a conditional insurance contract? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Which type of life insurance policy is this? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called How often must an insurance producers license in Utah be renewed? A. Because of this, an insurance contract is considered
The policies continue in force with no change. ______ is NOT an element of a valid contract. A) the appearance of authority an insurer gives to its agent Under the McCarran-Ferguson Act, what is the minimum penalty for this? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Of the following dividend options, which of these is taxable? Both partners are still married at the time of Bob's death. Which of the following statements is TRUE? Which of the following would be an act of Unfair Discrimination by an insurer? C) Bob's spouse A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. B) at the time of application How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? C) Charge more premium The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). In most cases, the insured is. Which of these riders will pay a death benefit if the insureds spouse dies? Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. 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 B) the unwritten authority that the agent is assumed to have C) Contract must have a legal purpose The policies continue in force with no change. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Which of these statements is true? His insurance agent told him the policy would be paid up if he reached age 100. B) Parent and children Which of the following policies does NOT build cash value? Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. _______ is the authority given to a producer to transact business on behalf of the insurer. be filed with the state Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. unilateral, Ambiguities in an insurance policy are always resolved in favor of the Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Q. The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. How do insurers predict the increase of individual risks? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? 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
Which of the following best defines diction? A. simile B - Weegy guarantee Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested?
Flashcards - Ch. 15 - Disability Income - FreezingBlue The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? Who is responsible for assembling the policy forms for insureds? Apparent 0 Answers/Comments. She would like to borrow $15,000 against the cash value. A) Express authority A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses.
Free Flashcards about Stack #2476860 - StudyStack C) promises made Which of the following BEST describes a conditional insurance contract? C) Authority given to handle claims and process payments 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? If the other agreement or condition is performed, then the conditional contract is . Which of the following is NOT considered rebating? How often must the Commissioner examine each domestic insurance company? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. 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? be in writing What is the advantage of adding this rider? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Describe the structure. B) the insurer's obligations are dependent upon certain acts of the insured individual A) offer and acceptance A) producer's apparent authority Which of these features are held exclusively by variable universal life insurance? consideration collateral, What is implied authority defined as? Advertisement. See answers. Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? C) Implied C) Law of Agency ______ is NOT an element of a valid contract. A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? voidable Provide an opinion.
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