See answers. B) only one party (the insurer) makes any kind of legally enforceable promise Which of the following does a producer NOT have a fiduciary responsibility to? 1 pt. B) Period to which the coverage exists Both partners are still married at the time of Bob's death. She would like to borrow $15,000 against the cash value. Which of the following BEST describes a conditional insurance contract? there is the potential for an unequal exchange of value which of the following best describes a conditional insurance contract? C) Apparent authority C) Indemnity contract guarantee How soon can the benefit payments begin with a deferred annuity? In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. The face amount and premium will remain constant over the 10-year period. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. 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. The gap between the total death benefit and the policys cash value. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. A life insurance policy that is subject to a contract interest rate is referred to as. C) promises made Both partners are still married at the time of Bob's death. A) Express authority Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Updated 10/6/2017 9:10:03 AM. Adhesion clause 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. 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". All of the following statements about Carl's coverage are correct. Term, whole, and universal life insurance. Which of the following best defines diction? A. simile B - Weegy Which of the following is a TRUE statement? Premiums paid plus interest earned is returned to the beneficiary. If she dies 15 years after the policy's inception date, how much will her beneficiary receive? 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? B) A contract that has the potential for the unequal exchange of consideration for both parties A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. B) Rescind the policy Which Of The Following Best Describes A Conditional Insurance Contract Which of the following best describes how you analyze a fiction text offer promises made Which of the following statements is true? B) producer 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). A) the appearance of authority an insurer gives to its agent The death benefit would be. A. B) Apparent 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? Policyowner has the right to select the investment which will provide the greatest return. Which of the following BEST describes a conditional insurance contract? B) Equal consideration is required between the involved parties Provide an opinion. b) a contract is an agreement enforceable at law. B. Asked 10/6/2017 7:04:21 AM. Which of these is considered to be a Living Benefit option in a life insurance policy? What does the Group Life underwriting risk selection process help protect insurance companies from? Bob dies 12 months later. If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? Vegetable B. The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? In the case of an insurance contract, the contracting parties are the claimant and the insurer. A.$1,656 If she dies 15 years after the policys inception date, how much will her beneficiary receive? Insurer's promise to pay benefits 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? What is this an example of? 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 coverage, conditions, and limitations in the master policy of a group contract can be found in which document? definitions 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. Julie has a $100,000 30-year mortgage on her new home. Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? Events are those which cannot be controlled by either . In this situation, who will receive Bob's policy proceeds? Which of the following is an annuity that is linked to a market-related index? apparent authority B) conditional D) Principal Capacity, A unilateral contract is one in which C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? C) consideration One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Which market index is normally associated with an indexed annuitys rate of return? C) Materiality of concealment 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) other insurance B) Unequal consideration Only the insured pays the premium Which of the following is an example of the insureds consideration? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. _______ is the authority given to a producer to transact business on behalf of the insurer. 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? d) an agreement requires a definite offer and an indefinite acceptance. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called 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. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? B) written contract 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 Pay owns a 20-pay life policy with a paid-up dividend option. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Which of the following are the premium payments for a universal life policy NOT used for? C) at the time of death Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? When does a life insurance policy typically become effective? Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. 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. A) Only the insured pays the premium Which military service exclusion clause would pay upon his death? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Insurance interest does NOT occur in which of the following relationships? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. Insurance contracts are unilateral contracts. The terms of the policy typically outline these conditions . 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. D) Competent parties, Which of the following BEST describes a conditional insurance contract? 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? 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? Which of the following BEST describes a conditional insurance contract? voidable producer What are conditions in an insurance policy? C) Competent parties C.$2,113 B) Bob's estate D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Which of the following is the best descriptive word? A - Weegy Loans obtained by a policyowner against the cash value of a life insurance policy. After being properly appointed by the insurer. Insurance Quiz (MCQs) Archives - Management Notes B) the unwritten authority that the agent is assumed to have Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. 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. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Describe the structure. Because of this, an insurance contract is considered Eventually, they retire and dissolve the business. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? B) Parent and children