insured A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Pay owns a 20-pay life policy with a paid-up dividend option. Because of this, an insurance contract is considered c) a contract must be in writing. D) Principal Capacity, A unilateral contract is one in which D) Only the insured is legally bound, Bob and Tom start a business. Which of these features are held exclusively by variable universal life insurance? A) when any business relationship exists B) at the time of application A) Authority given in writing to an agent in the agency agreement Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? D) Personal contract, The importance of a representation is demonstrated in what rule? conditional Under the McCarran-Ferguson Act, what is the minimum penalty for this? To see this page as it is meant to appear, please enable your Javascript! The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? ______ is NOT an element of a valid contract. Shirley has a $500,000 10-year-non-renewable level term life policy. A) estoppel the contract is voidable upon proof of fraud. Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. A) warranty Bob dies 12 months later. b. benefits paid under workers compensation. Which of the following statements about aleatory contracts is NOT true? An insurer exaggerating its dividends in a magazine advertisement. Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? What is created after policy proceeds are obtained in a lump sum and then immediately invested? An insurance applicant with a below-average likelihood of loss is typically considered to be a. A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. A. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which of the following statements is TRUE? Asked 10/6/2017 7:04:21 AM. A) Legal Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? $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? When the term insurance expires. B) concealment Which of the following is an annuity that is linked to a market-related index? B. Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? B) Law of adhesion 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). The policies continue in force with no change. 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. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. 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. What was his total bill? How do marketers use insights regarding the self-concept? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Competent parties Eventually, they retire and dissolve the business. the insurer's obligations are dependent upon certain acts of the insured individual be signed and witnessed by an attorney C) Materiality of concealment Food C. Plant D. Zucchini. C) the authority to represent the insurer C) Law of large numbers Which of the following is an example of the insureds consideration? What is this an example of? acceptance Which of the following BEST describes a conditional insurance contract? In this situation, who will receive Bob's policy proceeds? Which of the following is true of the law of contracts? A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. 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. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. Under the McCarran-Ferguson Act, what is the minimum penalty for this? consideration C) Only the insurer is legally bound 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? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. the policy provides a straight, level $100,000 of coverage for 5 years. 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 If the other agreement or condition is performed, then the conditional contract is . Sorry, you have Javascript Disabled! C) Law of Agency offer Business partners 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? 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 C) Insurable interest 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? All of the following are examples of a Business Continuation Plan EXCEPT. In most cases, the insured is. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? 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 these statements is true? C) Apparent authority Describe the structure. In this situation, who will receive Bob's policy proceeds? 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. claim forms Which of the following products would allow him to accomplish this? However, corporations also can raise money by selling bonds or issuing additional shares of stock. An insurance contract usually involves an exchange of consideration between both parties: the insurer agrees to provide coverage and pay claims in the event of a loss, and the policyholder agrees to pay premiums in return. C) there must be legal reasons for entering into the contract Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? 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?
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