Producers act in a(n) ________ capacity when holding insurance premiums. Sharing commissions with a producer licensed in the same line of business. A) Legal be signed and witnessed by an attorney What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? (B) Both parties adhere to the contract. Vegetable B. 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. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Variable life insurance and Universal life insurance are very similar. Which of the following are the premium payments for a universal life policy NOT used for? A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. C) Charge more premium The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). Premium clause All of the following are examples of a Business Continuation Plan EXCEPT. The type of annuity she is seeking is called. In order for a contract to be valid, it must. discreet apparent implied express, Bob and Tom start a business. Which of the following best describe the term definition. A) Sue the insured Which of the following best describes how you analyze a fiction text? Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. D) Competent parties, Which of the following BEST describes a conditional insurance contract? Which of the following would be considered an underwriting duty of an agent? Which of the following best describes the MIB? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Question. Which of the following is the best descriptive word? Connect with others, with spontaneous photos and videos, and random live-streaming. insured Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Rob recently died at age 60. The policies continue in force with no change. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? 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? A) Express 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). Which of these features are held exclusively by variable universal life insurance? 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. In which form of corporate financing is the investor also an owner? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) underwriting 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) Contract must have a legal purpose 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. Because of this, an insurance contract is considered Which of the following is an annuity that is linked to a market-related index? Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. The insurers obligation to pay a death benefit upon an approved death claim. 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. All of the following statements about Carl's coverage are correct. 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. Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. A) A contract that requires certain conditions or acts by the insured individual the insurer's obligations are dependent upon certain acts of the insured individual Write a summary of the main ideas. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. All of the following are examples of pure risk EXCEPT. A) there is the potential for an unequal exchange of value In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? A contract that requires certain conditions or acts by the insured individual. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Her son, Mike, is the beneficiary. B) issuance of the policy Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. A) fiduciary bond 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? 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? Advertisement. Sorry, you have Javascript Disabled! 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. A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise Anheuser-Busch InBev is trying to reduce its water usage. Authority given in writing to an agent in the agency agreement B) Contract of adhesion A) there must be an offer and acceptance At what point may a producer sell insurance for an insurer? B) Indemnity issuance of the policy 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? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Law of Agency Accelerated death benefit An example of an unfair claims practice would be Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? insurer 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. y=f(x)=10x5x+1535if0x3if3