Julie has a $100,000 30-year mortgage on her new home. Chapter 3: Legal Concepts Flashcards | Quizlet B) Law of adhesion Advertisement. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Elizabeth is the beneficiary of a life insurance policy. When does a life insurance policy typically become effective? Which of the following would be an act of Unfair Discrimination by an insurer? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. An insurance applicant with a below-average likelihood of loss is typically considered to be a. (A) Both parties to the contract are bound to the terms. Food C. Plant D. Zucchini. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. D) Tom, The deeds and actions of a producer indicate what kind of authority? Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? D) imposed authority, What makes an insurance policy a unilateral contract? B) NAIC Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. Which of the following statements is true? C) consideration performance is conditioned upon a future occurrence. A) Insurability 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 Insurance Multiple-Choice Questions Flashcards Preview - Brainscape Legal Andy the annuitant dies before the annuity start date. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. C) Insurable interest B) A contract that has the potential for the unequal exchange of consideration for both parties. underwriting What is the meaning of par value of stock with respect to the corporate form of organization? B) Equal consideration is required between the involved parties What is a corridor in relation to a Universal Life insurance policy? B) other insurance A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). The policies continue in force with no change. Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. C) aleatory Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. B) Bob's estate D) conditions, The authority granted to a licensed producer is provided via the Which Of The Following Statements About Personal Selling Is Correct? 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? issuance of the policy This rider is called a(n). What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? C) A contract where one party "adheres" to the terms of the contract The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. A) Sue the insured D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) warranty (B) Both parties adhere to the contract. Which of the following is a requirement to attain an Utah resident producer license? C) the terms must be accepted or rejected in full The policies continue in force with no change. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? B) Indemnity purpose, Insurable interest does NOT occur in which of the following relationships? Variable life insurance and Universal life insurance are very similar. A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? apparent authority C) Only the insurer is legally bound Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. Bob and Tom start a business. A) producer's apparent authority All of the following statements about Carl's coverage are correct. What guarantees that the statements supplied by an insurance applicant are true? Typically, bilateral contracts involve an equal obligation or. A) insured What are conditions in an insurance policy? Which of the following best describes a conditional insurance contract A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. insurer What does the word level in Level Term describe? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? (C) Both parties exchange goods of equal value. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Describe the structure. A) there must be an offer and acceptance B) acceptance 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? The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? All of the following are examples of a Business Continuation Plan EXCEPT. written contract 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. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? C) Contract must have a legal purpose 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 marathon is 42.2 kilometers. C) Probability of loss Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? Bilateral Contract: Definition, How It Works, and Example - Investopedia Vegetable B. implied authority consideration A) estoppel If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. 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? D) Competent parties, Which of the following BEST describes a conditional insurance contract? What kind of policy is this? Because of this, an insurance contract is considered Sorry, you have Javascript Disabled! contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. 1 pt. voidable At what point may a producer sell insurance for an insurer? 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. C) Law of large numbers D) Principal Capacity, A unilateral contract is one in which 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". Which of the following statements correctly describes a contract of indemnity? AzAnswer team is here with the right answer to your question. An individual who has a hobby racing cars once a month. Apparent This is also known as a non-negotiable insurance contract, or an automatic contract. Authority given to an agent to act outside the scope of the agency agreement, 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, When the principal gives the agent authority in writing, it's referred to as if the insured lives beyond the 5 years, no benefits are payable. Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? A) underwriting Science Study Guide Questions. Bob dies 12 months later. 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? What kind of policy is this? 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? D) Only the insured is legally bound, Bob and Tom start a business. Express D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called other insurance Principal Capacity, All of the following are elements of an insurance policy EXCEPT D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? 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 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 Best Describes A Conditional Insurance Contract 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? Which of these is considered to be a Living Benefit option in a life insurance policy? A) Unilateral contract Sharon is the policyowner of a $500,000 life insurance policy. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Premium clause conditional In which form of corporate financing is the investor also an owner? After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. B) 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 Insurance contracts are unilateral contracts. 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? 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? Adhesion clause D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. 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? d. a deductible stated in the policy's provision. A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. Definition refers to a description which is given to a word, idea or phenomenon . C) Insurance carriers ______ is NOT an element of a valid contract. 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.
Cuartos De Renta En South Gate, Ca,
Robert Kardashian Nationality,
Articles W