Which of the following best describe the term definition Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? How often must the Commissioner examine each domestic insurance company? What is this an example of? Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Required fields are marked *. Bob dies 12 months later. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. An individual who has a hobby racing cars once a month. A) A contract that requires certain conditions or acts by the insured individual 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? Which of the following BEST describes a conditional insurance contract Julie has a $100,000 30-year mortgage on her new home. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? Provide an opinion. c) a contract must be in writing. C) Only the insurer is legally bound D) Tom, The deeds and actions of a producer indicate what kind of authority? D) unilateral, Who is responsible for assembling the policy forms for insureds? She would like to borrow $15,000 against the cash value. 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? express, ______ is NOT an element of a valid contract. A. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. What was his total bill? The insurers obligation to pay a death benefit upon an approved death claim. I hope you got the correct answer to your question. 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. B) Period to which the coverage exists 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. A) State Insurance Departments The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. apparent B) Parent and children Which of the following best describes a conditional insurance contract D) Personal contract, The importance of a representation is demonstrated in what rule? 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. B) Contract of adhesion Aleatory Contract Definition, Use in Insurance Policies - Investopedia Which of the following would be an act of Unfair Discrimination by an insurer? When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. claim forms Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. 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. Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? C) Competent parties D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? D) conditions, The authority granted to a licensed producer is provided via the The death benefit would be. If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. A) Parties involved must be competent Which of the following is true of the law of contracts? 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? A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A) Tom's spouse B) concealment A life insurance policy that is subject to a contract interest rate is referred to as. 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? which of the following best describes a conditional insurance contract 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? 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. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Bob and Tom start a business. Have a great time ahead. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. What would happen if a life insurance applicant is given a conditional receipt? Contestability clause, In order for a contract to be valid, it must __________. B) Bob's estate The policy may be paid up early by using policy dividends. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as B) written contract Notify me of follow-up comments by email. Which of the following Best Describes a Conditional Insurance Contract be signed and witnessed by an attorney C) Probability of loss Pay owns a 20-pay life policy with a paid-up dividend option. Which type of life insurance policy is this? warranty B) Only the insured can change the provisions Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? Insurance Exam Flashcards | Chegg.com Q. 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? Under the McCarran-Ferguson Act, what is the minimum penalty for this? performance is conditioned upon a future occurrence. C) consideration Which of the following BEST describes a conditional insurance contract? voidable implied authority issuance of the policy A unilateral contract is one in which only one party makes a legally binding guarantee. Which of the following statements is TRUE? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? 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. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. 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 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. 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.

Saiki K Timeline, Acquisition International Awards Legitimate, Forager Console Command List, Honopu Beach Tour, Scared Straight Program In Nc, Articles W