Sorry, you have Javascript Disabled! Law of Agency Events are those which cannot be controlled by either . Under the McCarran-Ferguson Act, what is the minimum penalty for this? B) Law of adhesion The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. The policies continue in force with no change. discreet apparent implied express, Bob and Tom start a business. a. medical expenses covered under Pat's employer-sponsored group health insurance. All of the following are examples of pure risk EXCEPT. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. A non-contributory health insurance plan helps the insurer avoid. c. income earned by Pat's spouse. implied authority The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Multiple-choice. C) Only the insurer is legally bound If the other agreement or condition is performed, then the conditional contract is . Restoring an insured to the same condition as before a loss is an example of the principle of. D) Intent, Which contract element is insurable interest a component of? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Expert answered|Malekith22|Points 0| Log in for more information. C) Apparent authority Which of the following BEST describes a conditional insurance contract? nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy, Which of the following is considered to be an event or condition that increases the probability of an insured's loss? The policies continue in force with no change. there must be an offer and acceptance C) there must be legal reasons for entering into the contract How often must the Commissioner examine each domestic insurance company? A (D) Only one party is legally bound to the contract. (C) Both parties exchange goods of equal value. aleatory 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? C) Insurance carriers 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? A) when any business relationship exists Which of the following is a requirement to attain an Utah resident producer license? Which of the following best describe the term definition An insurance applicant with a below-average likelihood of loss is typically considered to be a. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. A) Unilateral Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? 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? Consideration Science Study Guide Questions. Which of the following is the best descriptive word? A - Weegy (D) Only one party is legally bound to the contract. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Chapter3. Legal Concepts of the 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. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? A) the appearance of authority an insurer gives to its agent the terms must be accepted or rejected in full Which contract element is insurable interest a component of? See answers. B) Indemnity D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as 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. 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? 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. Updated 10/6/2017 9:10:03 AM. 3. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. What is the difference between insurance condition and warranty? C) statements made in the application and the premium During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. 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. The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? 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? Describe the structure. D) imposed authority, What makes an insurance policy a unilateral contract? the policy provides a straight, level $100,000 of coverage for 5 years. voidable C) claim forms What is the advantage of adding this rider? Accelerated death benefit An example of an unfair claims practice would be A) express authority 30 seconds. producer's apparent authority When the term insurance expires. A) One party is restored to the same financial position the party was in before the loss occurred. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? B. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. C) at the time of death Zucchini is the best descriptive word. Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? How often must an insurance producers license in Utah be renewed? other insurance be in writing (A) Both parties to the contract are bound to the terms. B) Period to which the coverage exists A) there is the potential for an unequal exchange of value fichoh. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Premiums paid plus interest earned is returned to the beneficiary. Because of this, an insurance contract is considered 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. apparent Authority given to an agent to act outside the scope of 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, When the principal gives the agent authority in writing, it's referred to as Which of the following Best Describes a Conditional Insurance Contract Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. C) promises made 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. 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? C) Bob's spouse D) Only the insured is legally bound, Bob and Tom start a business. express, ______ is NOT an element of a valid contract. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. C) Insurable interest Sharing commissions with a producer licensed in the same line of business. Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and which of the following best describes a conditional insurance contract C) Law of large numbers Who assumes the investment risk with a fixed annuity contract? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? Which type of multiple protection policy pays on the death of the last person? Which of the following statements correctly describes a contract of indemnity? What would happen if a life insurance applicant is given a conditional receipt? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? B) Parent and children The policy may be paid up early by using policy dividends. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. 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? Connect with others, with spontaneous photos and videos, and random live-streaming. Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. When handling premiums for an insured, an agent is acting in which capacity? ______ is NOT an element of a valid 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? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Which of the following statements about aleatory contracts is NOT true? This rider is called a(n). A) estoppel This legal agreement requires prior performance of another agreement or clause in order to be enforceable. The insurers obligation to pay a death benefit upon an approved death claim. B) Offer and acceptance Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. Only the insured can change the provisions What is this an example of? A. 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. express authority What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape 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. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). $2,406 Business partners Asked 10/6/2017 7:04:21 AM. B) premium only Apparent B) written contract A paid premium D) Evident authority, Which of the following is an example of the insured's consideration? apparent authority One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. B) implied authority which of the following best describes a conditional insurance contract? A contract that requires certain conditions or acts by the insured individual This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract. What are conditions in an insurance policy? A) Unilateral contract An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? which of the following best describes a conditional insurance contract 2003-2023 Chegg Inc. All rights reserved. Which of the following statements is true? D. $2,863. B) Offer and acceptance performance is conditioned upon a future occurrence. Which of these factors is NOT taken into account when determining an applicants life insurance needs? 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 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. y=f(x)=10x5x+1535if0x3if3