Which of the following is an annuity that is linked to a market-related index? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. 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. the insurer's obligations are dependent upon certain acts of the insured individual Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Multiple-choice. b) a contract is an agreement enforceable at law. Which of the following BEST describes a conditional insurance contract. Conditional, Under a contract of adhesion, Asked 10/6/2017 7:04:21 AM. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? 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? How often must an insurance producers license in Utah be renewed? offer Which of the following is CORRECT regarding the death benefit amount? C) The insured and the insurer contribute equally to the contract. discreet apparent implied express, Bob and Tom start a business. apparent In this situation, who will receive Bob's policy proceeds? Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? When the term insurance expires. Food C. Plant D. Zucchini. B) Parent and children How does life insurance create an immediate estate? A) the appearance of authority an insurer gives to its agent C) Probability of loss C) representation A) offer Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Pay owns a 20-pay life policy with a paid-up dividend option. Which of the following is the best descriptive word? A - Weegy Identify the type of financing (stock or bond) that best answers the question. promises made A) Competent parties Andy the annuitant dies before the annuity start date. What does the word level in Level Term describe? Which of the following statements about aleatory contracts is NOT true? 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? A (D) Only one party is legally bound to the contract. 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 What is created after policy proceeds are obtained in a lump sum and then immediately invested? B) Only the insured can change the provisions B) implied authority A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? Rob recently died at age 60. A) Insurable interest the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Bob dies 12 months later. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. What is the difference between insurance condition and warranty? Business partners However, corporations also can raise money by selling bonds or issuing additional shares of stock. a. medical expenses covered under Pat's employer-sponsored group health insurance. Connect with others, with spontaneous photos and videos, and random live-streaming. Which Of The Following Best Describes A Conditional Insurance Contract. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Both partners are still married at the time of Bob's death. The insurers obligation to pay a death benefit upon an approved death claim. c. income earned by Pat's spouse. D) collateral, Express power given to an agent in an agency agreement is Events are those which cannot be controlled by either . How often must the Commissioner examine each domestic insurance company? A) implied authority B) only an offer Which military service exclusion clause would pay upon his death? B) conditional 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). Offering payment of approved claims within 30 days after affirming liability. 30 seconds. D) Utmost good faith, What does the insurance term "indemnity" refer to? Which of the following does a life insurance policy summary normally include? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. 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. 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. 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. In the case of an insurance contract, the contracting parties are the claimant and the 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? The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). C.$2,113 One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. C) there must be legal reasons for entering into the contract both parties consent to the contract. Sharon is the policyowner of a $500,000 life insurance policy. Expert answered|Malekith22|Points 0| Log in for more information. The face amount and premium will remain constant over the 10-year period. ______ is NOT an element of a valid contract. A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? B) Period to which the coverage exists A) Insurer's promise to pay benefits The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. Which of the following statements is true? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape they are "take it or leave it" contracts. Which Of The Following Statements About Personal Selling Is Correct? All of the following statements about Carl's coverage are correct. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. (D) Only one party is legally bound to the contract. The type of annuity she is seeking is called. $2,406 For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. C) Contract must have a legal purpose A) A contract that requires certain conditions or acts by the insured individual 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 How do marketers use insights regarding the self-concept? B) errors and omissions warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? the contract must be aleatory What types of life insurance are normally used for key employee indemnification? D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Which of the following statements correctly describes a contract of indemnity? be filed with the state Eventually, they retire and dissolve the business. If thats the case, you dont have to worry anymore. 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". An individual who has a hobby racing cars once a month. Which of the following is an example of the insureds consideration? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. conditional 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? Insurance Cram Ch. 6 Flashcards | Chegg.com 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, D) A contract where only one party makes any kind of enforceable contract. Implied Insurance Multiple-Choice Questions Flashcards Preview - Brainscape if the insured lives beyond the 5 years, no benefits are payable. The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? Which of the following BEST describes a conditional insurance contract? Write a summary of the main ideas. Which of the following best describes how you analyze a fiction text? A) One party is restored to the same financial position the party was in before the loss occurred. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? A) estoppel The insured, on the other hand, makes few, if any, legally binding promises to the insurer. 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. I hope you got the correct answer to your question. The terms of the policy typically outline these conditions . D) unilateral, Who is responsible for assembling the policy forms for insureds? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? 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". The policy may be paid up early by using policy dividends. B) Offer and acceptance 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.