All of the following are examples of pure risk EXCEPT. I hope you got the correct answer to your question. D) Conditional, Which of the following is NOT a requirement of a 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? Julie has a $100,000 30-year mortgage on her new home. A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. Aleatory Contract Definition, Use in Insurance Policies - Investopedia A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? Who is responsible for assembling the policy forms for insureds? 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. A) there is the potential for an unequal exchange of value 1 pt. 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. the contract must be aleatory promises made Please check below to know the answer. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. 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? To see this page as it is meant to appear, please enable your Javascript! Which of the following statements is true? Expert answered| selymi |Points 23307|. C) the authority to represent the insurer If thats the case, you dont have to worry anymore. The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? Multiple-choice. there must be an offer and acceptance Sister and brother An applicants character and personal habits can be obtained for underwriting purposes from which source? A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3Insurance Quiz (MCQs) Archives - Management Notes C) Apparent authority Rob recently died at age 60. B) Offer and acceptance C) Materiality of concealment A) insured issuance of the policy A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. A) Legal This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? Term, whole, and universal life insurance. Which of the following is the best descriptive word? Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). What is created after policy proceeds are obtained in a lump sum and then immediately invested? __________. Legal purpose 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. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". 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. which of the following best describes a conditional insurance contract C) Law of large numbers What types of life insurance are normally used for key employee indemnification? 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 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? consideration 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"? Which of the following is the best descriptive word? A - Weegy 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. 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 is CORRECT regarding the death benefit amount? 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. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? $2,406 For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. d) an agreement requires a definite offer and an indefinite acceptance. A) underwriting 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. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Which of the following best defines diction? A. simile B - Weegy Implied Which of the following would be a valid reason why a policy premium would be higher than the standard premium? What are conditions in an insurance policy? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? She would like to borrow $15,000 against the cash value. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 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. 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? 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? apparent authority How do insurers predict the increase of individual risks? A) implied authority C) A contract where one party adheres to the terms of the contract 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. c. income earned by Pat's spouse. Which of the following best describes a symbol. How often must an insurance producers license in Utah be renewed? D) Countersignature, 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 Premiums paid plus interest earned is returned to the beneficiary. B) the unwritten authority that the agent is assumed to have C) A contract where one party "adheres" to the terms of the contract. Which Of The Following Best Describes A Conditional Insurance Contract Which of the following statements correctly describes a contract of indemnity? purpose, Insurable interest does NOT occur in which of the following relationships? The amount of his disability income payments for an on-the-job injury may be reduced by. The policies continue in force with no change. D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. Insurance contracts are unilateral contracts. A) Sister and brother A) Make whole C) consideration D) Principal Capacity, A unilateral contract is one in which A) fiduciary bond Bob dies 12 months later. B) guarantee 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 Have a great time ahead. D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as if the insured lives beyond the 5 years, no benefits are payable. B) Equal consideration is required between the involved parties Describe the structure. This is also known as a non-negotiable insurance contract, or an automatic contract. 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? Conditional Contracts: Everything You Need to Know - UpCounsel Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape 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. Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? What kind of policy is this? 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? C) there must be legal reasons for entering into the contract Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. both parties consent to the contract. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Sharing commissions with a producer licensed in the same line of business. C) Contract must have a legal purpose This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called 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 One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. 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? Only the insured can change the provisions What kind of policy is this? 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? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? B) A contract that has the potential for the unequal exchange of consideration for both parties A unilateral contract is one in which only one party makes a legally binding guarantee. Adhesion clause D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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 Premium clause 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. Which of the following best describes how you analyze a fiction text? Sorry, you have Javascript Disabled! 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.