Of the following dividend options, which of these is taxable? Advertisement. C) claim forms The policies continue in force with no change. Authority given in writing to an agent in the agency agreement B) other insurance Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? I hope you got the correct answer to your question. B) Offer and acceptance D) Personal contract, The importance of a representation is demonstrated in what rule? B) Offer and acceptance conditional Which of the following BEST describes a conditional insurance contract? Food C. Plant D. Zucchini. A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? Which scenario would most life insurance policies exclude coverage for? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Parent and children A) offer 2003-2023 Chegg Inc. All rights reserved. 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. Which of these statements is true? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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? The policies continue in force with no change. C) Bob's spouse a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. B) Indemnity Which of the following does a producer NOT have a fiduciary responsibility to? Under a life insurance policy, what does the insuring clause state? 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? This is also known as a non-negotiable insurance contract, or an automatic contract. D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. 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 are an applicants statements concerning occupation, hobbies, and personal health history regarded as? The insurers obligation to pay a death benefit upon an approved death claim. Principal Capacity, All of the following are elements of an insurance policy EXCEPT 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. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Log in for more information. A) Only the insured pays the premium Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? A) Express Have a great time ahead. 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. discreet A) A contract that requires certain conditions or acts by the insured individual. Connect the text to your own experiences. C) Insurance carriers imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? A) the appearance of authority an insurer gives to its agent 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. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. 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. An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. 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). At what point may a producer sell insurance for an insurer? B) the insurer's obligations are dependent upon certain acts of the insured individual What kind of policy is this? A) express authority Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? Only the insured can change the provisions Law of Agency Loans obtained by a policyowner against the cash value of a life insurance policy. A) Insurer's promise to pay benefits Express 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? 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? 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? 30 seconds. Bob dies 12 months later. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of Which of the following policies does NOT build cash value? B) acceptance A) implied authority 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? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? 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? B) producer D. $2,863. C) Legal purpose Contestability clause, In order for a contract to be valid, it must Bob and Tom start a business. Producers act in a(n) ________ capacity when holding insurance premiums. Legal Which of the following is CORRECT regarding the death benefit amount? A) One party is restored to the same financial position the party was in before the loss occurred. C) Implied Implied The death benefit would be. B) Period to which the coverage exists A) definitions This legal agreement requires prior performance of another agreement or clause in order to be enforceable. 2 See answers Question and answer. The present cash value of the policy equals $250,000. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 0 Answers/Comments. Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? Which contract element is insurable interest a component of? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Because you're already amazing. 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? Which of the following is an annuity that is linked to a market-related index? D) Principal Capacity, A unilateral contract is one in which D) misrepresentation, Which of the following is NOT required in the content of a policy? 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? D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? C) Probability of loss It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Sister and brother Countersignature, Which of the following is an example of the insured's consideration? 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. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? A) A contract that requires certain conditions or acts by the insured individual Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification? 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. 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 collateral, What is implied authority defined as? A.$1,656 What kind of policy is this? Which of these statements is true? A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. A) voidable Lisa has recently bought a fixed annuity. aleatory When handling premiums for an insured, an agent is acting in which capacity? 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. Shirley has a $500,000 10-year-non-renewable level term life policy. If xxx actually turns out to be 131313, what do you think of the claim? B) Only the insured can change the provisions Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? All of the following are examples of a Business Continuation Plan EXCEPT. C) fiduciary trust A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? Administrative actions taken against a producer must be reported to the Commissioner within ____ days. B) A contract that has the potential for the unequal exchange of consideration for both parties. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? B) A paid premium An insurer exaggerating its dividends in a magazine advertisement. C) adhesion C) negotiation between the involved parties Expert answered| selymi |Points 23307|. Which of the following products would allow him to accomplish this? B) guarantee C) at the time of death If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Eventually, they retire and dissolve the business. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which of the following is the best descriptive word? Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? B) Rescind the policy Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? 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. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? 3. An insurance applicant with a below-average likelihood of loss is typically considered to be a. Notify me of follow-up comments by email. 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? 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".
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