Which of the following best describes the MIB? written contract What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? 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 Principal Capacity, All of the following are elements of an insurance policy EXCEPT A) when any business relationship exists What is the purpose for having an accelerated death benefit on a life insurance policy? Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? A) State Insurance Departments A.$1,656 Which of the following statements is true? The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? be filed with the state B) at the time of application A) A contract that requires certain conditions or acts by the insured individual Options 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 A) Express 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. The face amount and premium will remain constant over the 10-year period. B) A contract that has the potential for the unequal exchange of consideration for both parties Accelerated death benefit An example of an unfair claims practice would be Both partners are still married at the time of Bob's death. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. What would happen if a life insurance applicant is given a conditional receipt? State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? purpose, Insurable interest does NOT occur in which of the following relationships? Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? Which of the following are the premium payments for a universal life policy NOT used for? D) Personal contract, The importance of a representation is demonstrated in what rule? Rob recently died at age 60. B) producer B) Consideration acceptance Expert answered| selymi |Points 23307|. What kind of policy is this? D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? Under the McCarran-Ferguson Act, what is the minimum penalty for this? How soon can the benefit payments begin with a deferred annuity? ______ is NOT an element of a valid contract. A) A contract that requires certain conditions or acts by the insured individual. The present cash value of the policy equals $250,000. definitions D) misrepresentation, Which of the following is NOT required in the content of a policy? 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. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Competent parties Who assumes the investment risk with a fixed annuity contract? C) aleatory Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Eventually, they retire and dissolve the business. A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. D) collateral, Express power given to an agent in an agency agreement is After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? D) Intent, Which contract element is insurable interest a component of? Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Identify the type of financing (stock or bond) that best answers the question. Which market index is normally associated with an indexed annuitys rate of return? 2003-2023 Chegg Inc. All rights reserved. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Vegetable B. C) Consideration D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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) Law of adhesion 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. Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? C) Only the insurer is legally bound 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. D) imposed authority, What makes an insurance policy a unilateral contract? B) Equal consideration is required between the involved parties In this situation, who will receive Bob's policy proceeds? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? Intent, The deeds and actions of a producer indicate what kind of authority? Which of these would NOT be an unfair claims practice? promises made What guarantees that the statements supplied by an insurance applicant are true? Eventually, they retire and dissolve the business. C) Insurance carriers 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. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. After being properly appointed by the insurer. Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. B) concealment B) premium only D) Tom, The deeds and actions of a producer indicate what kind of authority? B) Offer and acceptance Log in for more information. D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Which of the following BEST describes a conditional insurance contract? C) the terms must be accepted or rejected in full A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3 Why Is My Cheddar Cheese Crumbly,
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