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B) Offer and acceptance Consideration clause C) Materiality of concealment Authority given in writing to an agent in the agency agreement A) there is the potential for an unequal exchange of value A) the appearance of authority an insurer gives to its agent This is also known as a non-negotiable insurance contract, or an automatic contract. A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. Which of the following would be considered an underwriting duty of an agent? A) producer's apparent authority C) Insurable interest His insurance agent told him the policy would be paid up if he reached age 100. Sister and brother (B) Both parties adhere to the contract. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Insurance interest does NOT occur in which of the following relationships? Eventually, they retire and dissolve the business. a. medical expenses covered under Pat's employer-sponsored group health insurance. Connect the text to your own experiences. Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. 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 The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which of the following best describes the MIB? (C) Both parties exchange goods of equal value. What is the advantage of adding this rider? 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? 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? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? At what point may a producer sell insurance for an insurer? Which of these is considered to be a Living Benefit option in a life insurance policy? 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? D) Personal contract, The importance of a representation is demonstrated in what rule? In this situation, who will receive Bob's policy proceeds? Which of the following is a requirement to attain an Utah resident producer license? Expert answered| selymi |Points 23307|. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Free Flashcards about Stack #2476860 - StudyStack Which Of The Following Best Describes A Conditional Insurance 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? performance is conditioned upon a future occurrence. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? B) Bob's estate A) fiduciary bond Which of these statements regarding the annuitant is CORRECT? 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? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? 2 See answers Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? I hope you got the correct answer to your question. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Chapter 3: Legal Concepts Flashcards | Quizlet It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. C) at the time of death offer A) Authority given in writing to an agent in the agency agreement When does a life insurance policy typically become effective? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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). A) there is an element of chance and potential for unequal exchange of value or consideration for both parties B) the unwritten authority that the agent is assumed to have Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Parent and children Which of the following are the premium payments for a universal life policy NOT used for? Only the insurance company has legal obligations. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Implied 3. Loans obtained by a policyowner against the cash value of a life insurance policy. Which of the following BEST describes a conditional insurance contract? The policy may be paid up early by using policy dividends. A) insured Which Of The Following Statements About Personal Selling Is Correct? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Identify the type of financing (stock or bond) that best answers the question. How soon can the benefit payments begin with a deferred annuity? How do insurers predict the increase of individual risks? 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. other insurance there must be an offer and acceptance How many days is a temporary producers license valid? Rob recently died at age 60. Andy the annuitant dies before the annuity start date. A) Sister and brother A) Express Flashcards - Connecticut Insurance Test 2021 - FreezingBlue 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)? Term, whole, and universal life insurance. the insurer's obligations are dependent upon certain acts of the insured individual Flashcards - Ch. 15 - Disability Income - FreezingBlue Which Of The Following Best Describes A Conditional Insurance Contract C) Only the insurer is legally bound A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. 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. The amount of his disability income payments for an on-the-job injury may be reduced by. Naming a contingent beneficiary as all surviving children is described as which term? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Under the McCarran-Ferguson Act, what is the minimum penalty for this? insurer Vegetable B. Anheuser-Busch InBev is trying to reduce its water usage. B) written contract Which of the following is an example of the insureds consideration? A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? definitions C) Implied A) Competent parties C) Apparent authority Contestability clause, In order for a contract to be valid, it must they are "take it or leave it" contracts. B) Rescind the policy 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? Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) A contract where one party "adheres" to the terms of the contract D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? How do marketers use insights regarding the self-concept? D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT be filed with the state In this situation, who will receive Bob's policy proceeds? Please check below to know the answer. 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. The insurers obligation to pay a death benefit upon an approved death claim. Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? fichoh. Insurance Exam Flashcards | Chegg.com B) producer If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Eventually, they retire and dissolve the business. A contract that requires certain conditions or acts by the insured individual. How often must an insurance producers license in Utah be renewed? 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. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. $2,406 Competent parties Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following statements is TRUE? Which of these riders will pay a death benefit if the insureds spouse dies? Premiums paid plus interest earned is returned to the beneficiary. Apparent Because of this, an insurance contract is considered B) A contract that has the potential for the unequal exchange of consideration for both parties Producers act in a(n) ________ capacity when holding insurance premiums. the terms must be accepted or rejected in full __________. Which of the following statements is true? Which of the following best describes how you analyze a fiction text? All of the following statements about Carl's coverage are correct. Insurance Quiz (MCQs) Archives - Management Notes 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? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs.