which of the following best describes a conditional insurance contract

guarantee Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). How does life insurance create an immediate estate? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 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 person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? C) promises made Log in for more information. Sharon is the policyowner of a $500,000 life insurance policy. After being properly appointed by the insurer. D) Personal contract, The importance of a representation is demonstrated in what rule? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Chapter 3 Legal Concepts of the Insurance Contract - Quizlet How do insurers predict the increase of individual risks? A) underwriting Which of the following BEST describes a conditional insurance contract. Which of the following BEST describes a conditional insurance contract? An insurance applicant with a below-average likelihood of loss is typically considered to be a. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Under a life insurance policy, what does the insuring clause state? 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. 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). How many days is a temporary producers license valid? Countersignature, Which of the following is an example of the insured's consideration? Law of Agency 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? What is the difference between insurance condition and warranty? Which of the following statements about aleatory contracts is NOT true? 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. C) Contract must have a legal purpose D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. In this situation, who will receive Bob's policy proceeds? B) A paid premium Multiple-choice. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Insurer's promise to pay benefits 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? In order for a contract to be valid, it must. Which of these is considered to be a disadvantage of owning this type of annuity? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Please check below to know the answer. A) Unilateral Science Study Guide Questions. How often must the Commissioner examine each domestic insurance company? 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? Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. D) Evident authority, Which of the following is an example of the insured's consideration? Adhesion clause A) Authority given in writing to an agent in the agency agreement be in writing A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? Aleatory Contract Definition, Use in Insurance Policies - Investopedia Which of the following BEST describes a conditional insurance contract Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? collateral, What is implied authority defined as? D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. How do marketers use insights regarding the self-concept? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? B) Bob's estate B) only an offer Which of the following statements correctly describes a contract of indemnity? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? Which of the following best defines diction? A. simile B - Weegy Bob dies 12 months later. 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? producer's apparent authority the policy provides a straight, level $100,000 of coverage for 5 years. Only the insurance company has legal obligations. 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? Restoring an insured to the same condition as before a loss is an example of the principle of. When initial premium is collected and policy is issued. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? C) Law of large numbers Bob dies 12 months later. Connect the text to your own experiences. Which of the following BEST describes a conditional insurance contract? B) Implied authority 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? The terms of the policy typically outline these conditions . 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) Conditional Contracts: Everything You Need to Know - UpCounsel A) there is an element of chance and potential for unequal exchange of value or consideration for both parties Premiums paid plus interest earned is returned to the beneficiary. 1 pt. An individual who has a hobby racing cars once a month. Which of the following best describes a symbol. Vegetable B. conditional Insurance interest does NOT occur in which of the following relationships? His insurance agent told him the policy would be paid up if he reached age 100. Authority given in writing to an agent in the agency agreement 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 Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? What kind of policy is this? performance is conditioned upon a future occurrence. Producers act in a(n) ________ capacity when holding insurance premiums. Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, 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". insurer Which statement is CORRECT when describing a contract of adhesion? 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? renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. A) Legal Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Her son, Mike, is the beneficiary. Which of the following best describe the term definition. Your email address will not be published. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Describe the structure. Which of the following BEST describes a conditional insurance contract? 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?

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