3. C) insurer B) premium only When handling premiums for an insured, an agent is acting in which capacity? However, corporations also can raise money by selling bonds or issuing additional shares of stock. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Adhesion clause Of the following dividend options, which of these is taxable? collateral, What is implied authority defined as? 1 pt. which of the following best describes a conditional insurance contract? 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? Which of the following BEST describes a conditional insurance contract? d) an agreement requires a definite offer and an indefinite acceptance. C) Indemnity contract B) Offer and acceptance D) Intent, Which contract element is insurable interest a component of? Bob and Tom start a business. Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. voidable 0 Answers/Comments. If thats the case, you dont have to worry anymore. D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. 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? Food C. Plant D. Zucchini. 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? 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? The gap between the total death benefit and the policys cash value. 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) Only the insured pays the premium Which of the following statements is true? warranty term, whole, and universal life insurance increasing term insurance joint, credit, and group life insurance adjustable, permanent, and limited-pay life insurance, Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Connect the text to your own experiences. Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. both parties consent to the contract. 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. d. a deductible stated in the policy's provision. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. An applicants character and personal habits can be obtained for underwriting purposes from which source? A) Parties involved must be competent Which of the following statements correctly describes a contract of indemnity? c) a contract must be in writing. Eventually, they retire and dissolve the business. D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) 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. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. A) Competent parties Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this an example of? Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? express, ______ is NOT an element of a valid contract. Which of the following BEST describes a conditional insurance contract. 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? Which of the following is an example of the insureds consideration? 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) Unilateral contract Offering payment of approved claims within 30 days after affirming liability. C) statements made in the application and the premium B) guarantee C) Law of large numbers D) Utmost good faith, What does the insurance term "indemnity" refer to? 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. B) only one party (the insurer) makes any kind of legally enforceable promise A) Insurer's promise to pay benefits C) the terms must be accepted or rejected in full What was his total bill? A) Insurability A) insured B) only an offer B) Implied authority B) A paid premium consideration Which scenario would most life insurance policies exclude coverage for? 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 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 marathon is 42.2 kilometers. A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals If she dies 15 years after the policys inception date, how much will her beneficiary receive? Zucchini is the best descriptive word. D) Competent parties, Which of the following BEST describes a conditional insurance contract? there is the potential for an unequal exchange of value B) Consideration A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. C) Charge more premium Which of the following is a reinstatement condition? Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. 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 Which of the following BEST describes a conditional insurance contract? Which of the following are the premium payments for a universal life policy NOT used for? 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? In this situation, who will receive Bob's policy proceeds? Under the McCarran-Ferguson Act, what is the minimum penalty for this? A) when any business relationship exists (A) Both parties to the contract are bound to the terms. C) Probability of loss A) Legal y=f(x)=10x5x+1535if0x3if3 Are Grass Stickers Poisonous,
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