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? 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. Chapter 3: Legal Concepts Flashcards | Quizlet Which of the following Best Describes a Conditional Insurance Contract D) imposed authority, What makes an insurance policy a unilateral contract? What kind of policy is this? This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? Log in for more information. Connect the text to your own experiences. 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. Authority given to handle claims and process payments Connect with others, with spontaneous photos and videos, and random live-streaming. D) Only the insured is legally bound, Bob and Tom start a business. 30 seconds. How soon can the benefit payments begin with a deferred annuity? What is the meaning of par value of stock with respect to the corporate form of organization? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com An insurance applicant with a below-average likelihood of loss is typically considered to be a. A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3Which Of The Following Best Describes A Conditional Insurance Contract Both partners are still married at the time of Bob's death. 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". 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? Implied C) Aleatory Required fields are marked *. What is this called? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Zucchini is the best descriptive word. His insurance agent told him the policy would be paid up if he reached age 100. Which of the following is a TRUE statement? C) A contract where one party "adheres" to the terms of the contract. B) errors and omissions Which of the following best describes the MIB? performance is conditioned upon a future occurrence. aleatory GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. B) A contract that has the potential for the unequal exchange of consideration for both parties Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Both partners are still married at the time of Bob's death. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Insurance interest does NOT occur in which of the following relationships? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? 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? 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? If she dies 15 years after the policys inception date, how much will her beneficiary receive? B) the unwritten authority that the agent is assumed to have ______ is NOT an element of a valid contract. Which type of multiple protection policy pays on the death of the last person? Which of the following statements is TRUE? D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called C) Insurable interest Completing all applications and collecting initial premiums. Which of the following best describes how you analyze a fiction text? Of the following dividend options, which of these is taxable? B) acceptance What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. Which of the following BEST describes a conditional insurance contract? Which of these is considered to be a disadvantage of owning this type of annuity? d) an agreement requires a definite offer and an indefinite acceptance. B) 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 How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? Within how many days must a licensee notify the Commissioner of a change in address? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following best describes a symbol The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. The type of annuity she is seeking is called. 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. __________. Policyowner has the right to select the investment which will provide the greatest return. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Only the insurer is legally bound Because of this, an insurance contract is considered Conditional, Under a contract of adhesion, C) Consideration 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) Law of large numbers B) only one party (the insurer) makes any kind of legally enforceable promise be filed with the state C) Indemnity contract Insurer's promise to pay benefits Multiple-choice. 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. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Under a life insurance policy, what does the insuring clause state? Which Of The Following Best Describes A Conditional Insurance Contract A) fiduciary bond Asked 10/6/2017 7:04:21 AM. What is this an example of? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. 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? 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? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. A) producer's apparent authority Expert answered|Malekith22|Points 0| Log in for more information. See answers. 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). C) Probability of loss Sharon is the policyowner of a $500,000 life insurance policy. Which of the following BEST describes a conditional insurance contract? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? 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. A. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 2003-2023 Chegg Inc. All rights reserved. Contestability clause, In order for a contract to be valid, it must After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). C) Authority given to handle claims and process payments A) offer and acceptance What kind of policy is this? Authority given in writing to an agent in the agency agreement
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