B) errors and omissions A) Sister and brother Parent and children In this situation, who will receive Bob's policy proceeds? the contract must be aleatory Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. A) implied authority underwriting Which option was chosen? Which of the following is an annuity that is linked to a market-related index? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? warranty $0 $5,000 $10,000 $15,000, Determine financial strength of an insurance company, What is the primary purpose of a rating service company such as A.M Best? Premiums paid plus interest earned is returned to the beneficiary. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. 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? 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? A) Tom's spouse Identify the type of financing (stock or bond) that best answers the question. 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 Only the insured can change the provisions Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 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? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. An applicants character and personal habits can be obtained for underwriting purposes from which source? there must be legal reasons for entering into the contract At what point may a producer sell insurance for an insurer? Eventually, they retire and dissolve the business. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 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? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? discreet 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 terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. $2,406 Which of the following is CORRECT regarding the death benefit amount? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? be filed with the state How many days is a temporary producers license valid? b) a contract is an agreement enforceable at law. If she dies 15 years after the policys inception date, how much will her beneficiary receive? express, ______ is NOT an element of a valid contract. C) Only the insurer is legally bound 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? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Which of these is considered to be a disadvantage of owning this type of annuity? Who assumes the investment risk with a fixed annuity contract? Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Premium clause In exchange, the policyowner pays premiums. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? (B) Both parties adhere to the contract. A) voidable The amount of his disability income payments for an on-the-job injury may be reduced by. B) at the time of application 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 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. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). Typically, bilateral contracts involve an equal obligation or. It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? B) the unwritten authority that the agent is assumed to have D) conditions, The authority granted to a licensed producer is provided via the A non-contributory health insurance plan helps the insurer avoid. The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. A) Express authority Have a great time ahead. Competent parties Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Advertisement. Who is responsible for assembling the policy forms for insureds? In order for a contract to be valid, it must. 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. Rob recently died at age 60. producer's apparent authority Which of the following BEST describes a conditional insurance contract? 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? Please check below to know the answer. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. B) Law of adhesion C) promises made Which of these would NOT be an unfair claims practice? 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. b. benefits paid under workers compensation. The policies continue in force with no change. Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. Required fields are marked *. Elizabeth is the beneficiary of a life insurance policy. Within how many days must a licensee notify the Commissioner of a change in address? A) A contract that requires certain conditions or acts by the insured individual What is the meaning of par value of stock with respect to the corporate form of organization?
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