claim forms Which of the following BEST describes a conditional insurance contract? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. conditional B) the contract must be aleatory Adjustable life Credit life Modified life Universal life, Whole life policy with premiums paid up after 20 years, Which of these would be the best example of a limited pay life insurance policy? 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 According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan 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. apparent An insurer exaggerating its dividends in a magazine advertisement. 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 Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. Which of the following BEST describes a conditional insurance contract? Which of the following is CORRECT regarding the death benefit amount? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Which of the following is an example of the insureds consideration? Which Of The Following Best Describes A Conditional Insurance Contract. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. insured Because of this, an insurance contract is considered In order for a contract to be valid, it must. 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. Only the insured can change the provisions B) Contract of adhesion B) Unequal consideration The face amount and premium will remain constant over the 10-year period. C) Charge more premium B. The terms of the policy typically outline these conditions . The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Flashcards - Ch. 15 - Disability Income - FreezingBlue C) negotiation between the involved parties B) Offer and acceptance When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Which statement is CORRECT when describing a contract of adhesion? B) Parent and children 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. C) Law of large numbers fichoh. C) at the time of death The amount of his disability income payments for an on-the-job injury may be reduced by. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". 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. A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. D) Tom, The deeds and actions of a producer indicate what kind of authority? Your email address will not be published. Her son, Mike, is the beneficiary. 2003-2023 Chegg Inc. All rights reserved. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. 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. A) Tom's spouse Conditional Contracts: Everything You Need to Know - UpCounsel A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. B) acceptance Only the insurer is legally bound Bilateral Contract: Definition, How It Works, and Example - Investopedia they are "take it or leave it" contracts. B) guarantee A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? D) Personal contract, The importance of a representation is demonstrated in what rule? C) Authority given to handle claims and process payments If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? What guarantees that the statements supplied by an insurance applicant are true? 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. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. 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. A) definitions Term, whole, and universal life insurance. Conditional, Under a contract of adhesion, D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's A contract that requires certain conditions or acts by the insured individual A contract that has the potential for the unequal exchange of consideration for both parties A contract where one party "adheres" to the terms of the contract A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? What is the advantage of adding this rider? A) Express A) Parties involved must be competent A) Sue the insured Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? A (D) Only one party is legally bound to the contract. If xxx actually turns out to be 131313, what do you think of the claim? Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? B) A paid premium The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? Which of the following is true of the law of contracts? Offering payment of approved claims within 30 days after affirming liability. Which of the following best describes how you analyze a fiction text Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? Which of the following would be considered an underwriting duty of an agent? D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the Which Of The Following Statements About Personal Selling Is Correct? A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Notify me of follow-up comments by email. Which Of The Following Best Describes A Conditional Insurance Contract offer C) adhesion If she dies 15 years after the policys inception date, how much will her beneficiary receive? Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? Insurance Quiz (MCQs) Archives - Management Notes C.$2,113 How does life insurance create an immediate estate? C) Consideration contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. 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? C) Insurance carriers WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. Which of these factors is NOT taken into account when determining an applicants life insurance needs? Sharon is the policyowner of a $500,000 life insurance policy. Which of these features are held exclusively by variable universal life insurance? C) Bob's spouse Log in for more information. A) Insurable interest D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. conditions, Legal purpose is a term used in contract law meaning D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called What does the Group Life underwriting risk selection process help protect insurance companies from? _______ is the authority given to a producer to transact business on behalf of the insurer. A) producer's apparent authority Connect the text to your own experiences. Adhesion clause What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Which of these is considered to be a disadvantage of owning this type of annuity? D) Countersignature, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's B) Law of adhesion Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and Which of the following BEST describes a conditional insurance contract Julie has a $100,000 30-year mortgage on her new home. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? What kind of policy is this? C) Competent parties 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. 2003-2023 Chegg Inc. All rights reserved. If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Intent, The deeds and actions of a producer indicate what kind of authority? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? 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? B) implied authority D) unilateral, Who is responsible for assembling the policy forms for insureds? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. Parent and children D) collateral, Express power given to an agent in an agency agreement is Lisa has recently bought a fixed annuity. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Which of the following is the best descriptive word? A - Weegy C) there must be legal reasons for entering into the contract 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). In exchange, the policyowner pays premiums. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. In this situation, who will receive Bob's policy proceeds? B) Only the insured can change the provisions B) other insurance 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? What is the difference between insurance condition and warranty? Insurance interest does NOT occur in which of the following relationships? C) Only the insurer is legally bound Which of these statements is true? 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. Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape B) A contract that has the potential for the unequal exchange of consideration for both parties. Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. Plot this function and determine if she is ready to attempt the Bluenose Marathon. Principal Capacity, All of the following are elements of an insurance policy EXCEPT Sharing commissions with a producer licensed in the same line of business. Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. Which of the following is NOT considered rebating? A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. (D) Only one party is legally bound to the contract. 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. 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. D. $2,863. B) A contract that has the potential for the unequal exchange of consideration for both parties A) there is an element of chance and potential for unequal exchange of value or consideration for both parties A) Unilateral D) Principal Capacity, A unilateral contract is one in which 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 the potential for an unequal exchange of value How do marketers use insights regarding the self-concept? In most cases, the insured is. 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? Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Naming a contingent beneficiary as all surviving children is described as which term? Business partners 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.

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