Because of this, an insurance contract is considered The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. 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. A) insured Definition refers to a description which is given to a word, idea or phenomenon . C) Competent parties 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. 1 pt. C) Probability of loss The insurers obligation to pay a death benefit upon an approved death claim. Sharing commissions with a producer licensed in the same line of business. The face amount and premium will remain constant over the 10-year period. C) Business partners Shirley has a $500,000 10-year-non-renewable level term life policy. I hope you got the correct answer to your question. 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. B) the insurer's obligations are dependent upon certain acts of the insured individual A. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. What is the advantage of adding this rider? Which type of life insurance policy is this? A.$1,656 conditions, Legal purpose is a term used in contract law meaning Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. The type of annuity she is seeking is called. A) Legal Policyowner has the right to select the investment which will provide the greatest return. D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) C) Bob's spouse What is a corridor in relation to a Universal Life insurance policy? Intent, The deeds and actions of a producer indicate what kind of authority? be in writing 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? 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. D) Tom, The deeds and actions of a producer indicate what kind of authority? A) underwriting Multiple-choice. B) Consideration An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. producer's apparent authority In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? D) Conditional, Which of the following is NOT a requirement of a contract? Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. 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? 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. After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? C) Authority given to handle claims and process payments Updated 10/6/2017 9:10:03 AM. B) Offer and acceptance C) Consideration What is the meaning of par value of stock with respect to the corporate form of organization? All of the following statements about Carl's coverage are correct. Parent and children D. $2,863. Authority given to handle claims and process payments C) Only the insurer is legally bound Which of the following statements is TRUE? Which of the following products would allow him to accomplish this? 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. 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. B) written contract the policy provides a straight, level $100,000 of coverage for 5 years. How do marketers use insights regarding the self-concept? B) premium only Which of these factors is NOT taken into account when determining an applicants life insurance needs? With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. 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? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 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. C) Insurable interest After being properly appointed by the insurer. A) Unilateral contract If xxx actually turns out to be 131313, what do you think of the claim? 2 See answers 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. A) definitions Her son, Mike, is the beneficiary. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Only the insured can change the provisions D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? C) the terms must be accepted or rejected in full Which Of The Following Statements About Personal Selling Is Correct? D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? fichoh. A) producer's apparent authority A contract that requires certain conditions or acts by the insured individual. 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. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? B) A paid premium Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, 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". Under a life insurance policy, what does the insuring clause state? It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. Events are those which cannot be controlled by either . What was his total bill? Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A) Competent parties Eventually, they retire and dissolve the business. Adhesion clause In this situation, who will receive Bob's policy proceeds? Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Which of the following BEST describes a conditional insurance contract? y=f(x)=10x5x+1535if0x3if3