If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? 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? Which of these features are held exclusively by variable universal life insurance? In order for a contract to be valid, it must. B) only an offer Authority given in writing to an agent in 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 Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? Which of the following best describe the term definition C) Authority given to handle claims and process payments What does the word level in Level Term describe? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 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. $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. B) Equal consideration is required between the involved parties B) A contract that has the potential for the unequal exchange of consideration for both parties A) Legal Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? What is this called? conditions, Legal purpose is a term used in contract law meaning 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. if the insured lives beyond the 5 years, no benefits are payable. Julie has a $100,000 30-year mortgage on her new home. Identify the type of financing (stock or bond) that best answers the question. b) a contract is an agreement enforceable at law. C) there must be legal reasons for entering into the contract implied authority Provide an opinion. Authority given in writing to an agent in the agency agreement The type of annuity she is seeking is called. How do marketers use insights regarding the self-concept? 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 of the following best describe the term definition. other insurance This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Law of Agency 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? The gap between the total death benefit and the policys cash value. Please check below to know the answer. Which of the following does a life insurance policy summary normally include? 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? 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. discreet The death benefit would be. Vegetable B. Authority given to handle claims and process payments B) issuance of the policy Which of the following BEST describes a conditional insurance contract? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. C) negotiation between the involved parties $2,406 A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? What kind of policy is this? B) the insurer's obligations are dependent upon certain acts of the insured individual Connect the text to your own experiences. Bob and Tom start a business. A) Sister and brother Events are those which cannot be controlled by either . discreet apparent implied express, Bob and Tom start a business. warranty C) the terms must be accepted or rejected in full Conditional Contracts: Everything You Need to Know - UpCounsel underwriting 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. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 30 seconds. Which of the following is an example of the insureds consideration? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. What would happen if a life insurance applicant is given a conditional receipt? Which of the following BEST describes a conditional insurance contract. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Term, whole, and universal life insurance. LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com C) aleatory Which of the following best describes how you analyze a fiction text C) statements made in the application and the premium Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? 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. B) Offer and acceptance A) voidable 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? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? c) a contract must be in writing. 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. B) A contract that has the potential for the unequal exchange of consideration for both parties. Which of the following is true of the law of contracts? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? 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. Asked 10/6/2017 7:04:21 AM. _______ is the authority given to a producer to transact business on behalf of the insurer. which of the following best describes a conditional insurance contract express authority Which of the following products would allow him to accomplish this? D) Competent parties, Which of the following BEST describes a conditional insurance contract? 2 See answers Insurance Quiz (MCQs) Archives - Management Notes Which of the following BEST describes a conditional insurance contract It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? be signed and witnessed by an attorney Policyowner has the right to select the investment which will provide the greatest return. A) Unilateral C) Materiality of concealment written contract collateral, What is implied authority defined as? Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? both parties consent to the contract. Sister and brother The policies continue in force with no change. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called Which Of The Following Best Describes A Conditional Insurance Contract A) Parties involved must be competent 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. 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. If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Expert answered| selymi |Points 23307|. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's offer D) misrepresentation, Which of the following is NOT required in the content of a policy? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? Naming a contingent beneficiary as all surviving children is described as which term? See answers. The policies continue in force with no change. issuance of the policy B) Contract of adhesion 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 Insurer's promise to pay benefits acceptance 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. Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? A) Express authority B) Parent and children What kind of policy is this? What kind of policy is this? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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? 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? In the case of an insurance contract, the contracting parties are the claimant and the insurer. D) Conditional, Which of the following is NOT a requirement of a contract? Definition refers to a description which is given to a word, idea or phenomenon . C) Apparent authority At what point may a producer sell insurance for an insurer? D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? D. $2,863. Which of these factors is NOT taken into account when determining an applicants life insurance needs? B) Bob's estate 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? Food C. Plant D. Zucchini. Chapter 1 - Completing the application, underwriting, and - Chegg y=f(x)=10x5x+1535if0x3if3
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