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. Which of these statements is true? 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. B) NAIC I hope you got the correct answer to your question. 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. Which of the following is NOT considered rebating? When does a life insurance policy typically become effective? What is a corridor in relation to a Universal Life insurance policy? Insurance Cram Ch. 6 Flashcards | Chegg.com Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. The policies continue in force with no change. Advertisement. a. medical expenses covered under Pat's employer-sponsored group health insurance. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. C) insurer Who is responsible for assembling the policy forms for insureds? What is this an example of? A) insured Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Principal Capacity, All of the following are elements of an insurance policy EXCEPT B) at the time of application During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. What guarantees that the statements supplied by an insurance applicant are true? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? Which Of The Following Best Describes A Conditional Insurance Contract Because you're already amazing. It is the means by which one or more parties bind themselves to certain promises. (A) Both parties to the contract are bound to the terms. 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. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? Elizabeth is the beneficiary of a life insurance policy. An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. How do marketers use insights regarding the self-concept? This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). However, corporations also can raise money by selling bonds or issuing additional shares of stock. __________. which of the following best describes a conditional insurance contract? A) Insurable interest warranty An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. Which of the following does a producer NOT have a fiduciary responsibility to? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? Bob dies 12 months later. B) Law of adhesion Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? 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? Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? there must be legal reasons for entering into the contract D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? A contract that requires certain conditions or acts by the insured individual. 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) representation C) adhesion The terms of the policy typically outline these conditions . C) Insurable interest Which of the following are the premium payments for a universal life policy NOT used for? Chapter 1 - Completing the application, underwriting, and - Chegg C) Charge more premium Which of the following BEST describes a conditional insurance contract Insurance contracts are unilateral contracts. C) Indemnity contract Producers act in a(n) ________ capacity when holding insurance premiums. Which of the following Best Describes a Conditional Insurance Contract 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). 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. D) Utmost good faith, What does the insurance term "indemnity" refer to? 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. D. $2,863. Which of the following is an annuity that is linked to a market-related index? Conditional, Under a contract of adhesion, D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists 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 Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Which type of multiple protection policy pays on the death of the last person? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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. Business partners Which option was chosen? D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? A) Sister and brother 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? What would happen if a life insurance applicant is given a conditional receipt? D) Only the insured is legally bound, Bob and Tom start a business. 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 All of the following statements about Carl's coverage are correct. A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? there must be an offer and acceptance Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? A life insurance policy that is subject to a contract interest rate is referred to as. B) Parent and children 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? Which of the following BEST describes a conditional insurance contract? A contract that requires certain conditions or acts by the insured individual. C) consideration both parties consent to the contract. All of the following are examples of a Business Continuation Plan EXCEPT. C) fiduciary trust $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? 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? 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". 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? _______ is the authority given to a producer to transact business on behalf of the insurer. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. Completing all applications and collecting initial premiums. C) Legal purpose B) Period to which the coverage exists Implied D) Intent, Which contract element is insurable interest a component of? A) estoppel Which of these would NOT be an unfair claims practice? If she dies 15 years after the policys inception date, how much will her beneficiary receive? In this situation, who will receive Bob's policy proceeds? Which of the following BEST describes a conditional insurance contract? Aleatory Contract Definition, Use in Insurance Policies - Investopedia 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?