Countersignature, Which of the following is an example of the insured's consideration? 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 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. Sister and brother 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? _______ is the authority given to a producer to transact business on behalf of the insurer. A) estoppel Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Eventually, they retire and dissolve the business. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. B) only one party (the insurer) makes any kind of legally enforceable promise B) NAIC Your email address will not be published. In this situation, who will receive Bob's policy proceeds? (D) Only one party is legally bound to the contract. 0 Answers/Comments. the policy provides a straight, level $100,000 of coverage for 5 years. Rob recently died at age 60. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? be signed and witnessed by an attorney D) Utmost good faith, What does the insurance term "indemnity" refer to? 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? Implied Anheuser-Busch InBev is trying to reduce its water usage. 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? In exchange, the policyowner pays premiums. At what point may a producer sell insurance for an insurer? 30 seconds. A non-contributory health insurance plan helps the insurer avoid. Write a summary of the main ideas. B) Period to which the coverage exists A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. In this situation, who will receive Bob's policy proceeds? A contract that requires certain conditions or acts by the insured individual. B) Apparent Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. be in writing Which of the following is a TRUE statement? B) Only the insured can change the provisions C) claim forms A) Sister and brother Loans obtained by a policyowner against the cash value of a life insurance policy. 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. conditions, Legal purpose is a term used in contract law meaning Insurance interest does NOT occur in which of the following relationships? if the insured lives beyond the 5 years, no benefits are payable. The insured, on the other hand, makes few, if any, legally binding promises to the insurer. The present cash value of the policy equals $250,000. A) when any business relationship exists Business partners A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. What was his total bill? C) Charge more premium Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? 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? C) Only the insurer is legally bound Only the insurer is legally bound A) underwriting Elizabeth is the beneficiary of a life insurance policy. How does life insurance create an immediate estate? 2. C) Law of Agency 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. All of the following statements about Carl's coverage are correct. 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? C.$2,113 a. medical expenses covered under Pat's employer-sponsored group health insurance. Because you're already amazing. C) consideration Because of this, an insurance contract is considered The face amount and premium will remain constant over the 10-year period. acceptance Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. The policies continue in force with no change. Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. Which of the following statements about aleatory contracts is NOT true? D) Evident authority, Which of the following is an example of the insured's consideration? D) imposed authority, What makes an insurance policy a unilateral contract? D) misrepresentation, Which of the following is NOT required in the content of a policy? C) the authority to represent the insurer b) a contract is an agreement enforceable at law. Q. Legal purpose 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) Which of the following statements is true? Pay owns a 20-pay life policy with a paid-up dividend option. What is the advantage of adding this rider? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. apparent authority Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? A) A contract that requires certain conditions or acts by the insured individual Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? C) adhesion A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Because of this, an insurance contract is considered Connect the text to your own experiences. 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"? guarantee C) representation Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 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). claim forms A) Express authority What is the purpose for having an accelerated death benefit on a life insurance policy? B) A contract that has the potential for the unequal exchange of consideration for both parties B) Unequal consideration D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. d. a deductible stated in the policy's provision. Which of the following is CORRECT regarding the death benefit amount? How often must an insurance producers license in Utah be renewed? (B) Both parties adhere to the contract. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? His insurance agent told him the policy would be paid up if he reached age 100. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which of these is considered to be a Living Benefit option in a life insurance policy? issuance of the policy Expert answered| selymi |Points 23307|. What is the meaning of par value of stock with respect to the corporate form of organization? A) insured A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? A) State Insurance Departments Please check below to know the answer. which of the following best describes a conditional insurance contract?