the contract must be aleatory B) issuance of the policy Food C. Plant D. Zucchini. 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. $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? D) Utmost good faith, What does the insurance term "indemnity" refer to? Authority given in writing to an agent in the agency agreement A) Make whole D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. B) only one party (the insurer) makes any kind of legally enforceable promise A) the appearance of authority an insurer gives to its agent The insurers obligation to pay a death benefit upon an approved death claim. D) Evident authority, Which of the following is an example of the insured's consideration? Only the insured is legally bound, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's express, ______ is NOT an element of a valid contract. issuance of the policy A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? C) Insurable interest What would happen if a life insurance applicant is given a conditional receipt? B) Implied authority 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? The gap between the total death benefit and the policys cash value. 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? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. 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. Connect with others, with spontaneous photos and videos, and random live-streaming. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? Which of the following would be considered an underwriting duty of an agent? Term, whole, and universal life insurance. 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. Events are those which cannot be controlled by either . Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. B) at the time of application Completing all applications and collecting initial premiums. Who assumes the investment risk with a fixed annuity contract? Which of the following does a life insurance policy summary normally include? Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? D) Business owner and business client, Under a contract of adhesion, D) collateral, Express power given to an agent in an agency agreement is D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. Vegetable B. 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 authority granted to a licensed producer is provided via the An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. 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? How many days is a temporary producers license valid? C) claim forms 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? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. A) Parties involved in the contract 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. B. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. if the insured lives beyond the 5 years, no benefits are payable. The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? 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. B) Unequal consideration Which of the following best describes how you analyze a fiction text? D) imposed authority, What makes an insurance policy a unilateral contract? C.$2,113 Naming a contingent beneficiary as all surviving children is described as which term? C) statements made in the application and the premium See answers. Anheuser-Busch InBev is trying to reduce its water usage. Which of these statements is true? In order for a contract to be valid, it must. implied 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? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called Log in for more information. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. both parties consent to the contract. 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? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. Insurance contracts are unilateral contracts. What is the advantage of adding this rider? Express Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? B) guarantee She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Q. 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? B) conditional Parent and children Competent parties A) there must be an offer and acceptance Only the insured can change the provisions 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? How often must the Commissioner examine each domestic insurance company? Countersignature, Which of the following is an example of the insured's consideration? An insurer exaggerating its dividends in a magazine advertisement. weegy. be in writing This is also known as a non-negotiable insurance contract, or an automatic contract. A. When the principal gives the agent authority in writing, its referred to as, The terms must be accepted or rejected in full. Which of these riders will pay a death benefit if the insureds spouse dies? 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. acceptance Policyowner has the right to select the investment which will provide the greatest return. 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) Consideration Premium clause 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 Which of the following is CORRECT regarding the death benefit amount? 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? Only the insured pays the premium C) Authority given to handle claims and process payments B) other insurance insurer Which of these statements regarding the annuitant is CORRECT? 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. 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". During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. apparent authority Which of these statements is true? A unilateral contract is one in which only one party makes a legally binding guarantee. Barry offers Chris his mountain cabin for the weekend to secure his order for his insurance business. The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. C) A contract where one party "adheres" to the terms of the contract. Zucchini is the best descriptive word. C) aleatory 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 A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, According to the principle of Utmost Good Faith, the insured will answer questions on the application to the best of their knowledge and pay the required premium, while the insurer will deal fairly with the insured and it's underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? Pay owns a 20-pay life policy with a paid-up dividend option. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. fichoh. 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? If thats the case, you dont have to worry anymore. The policies continue in force with no change. written contract 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? implied authority Lisa has recently bought a fixed annuity. be filed with the state Within how many days must a licensee notify the Commissioner of a change in address? The face amount and premium will remain constant over the 10-year period. Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Bob and Tom start a business. The Fair Credit Reporting Acts main purpose is to, Protect consumers with guidelines regarding credit reporting and distribution, A whole life insurance policy accumulated cash value that becomes, The policy loan value which the insured may borrow against. A contract that requires certain conditions or acts by the insured individual. Rob recently died at age 60. (D) Only one party is legally bound to the contract. A) implied authority A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. A) Competent parties Which of the following is an example of the insureds consideration? definitions promises made C) consideration 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. Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? 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. Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? 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. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. representation 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) Typically, bilateral contracts involve an equal obligation or. In exchange, the policyowner pays premiums. A) Legal Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. Which of the following BEST describes a conditional insurance contract? When does a life insurance policy typically become effective? 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. What kind of policy is this? Bob dies 12 months later. If she dies 15 years after the policys inception date, how much will her beneficiary receive? 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. Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? (A) Both parties to the contract are bound to the terms. Which of the following is a reinstatement condition? voidable After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. Consideration aleatory Which of the following is a requirement to attain an Utah resident producer license? In this situation, who will receive Bob's policy proceeds? 2 See answers Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Multiple-choice. An insurance applicant with a below-average likelihood of loss is typically considered to be a. How do marketers use insights regarding the self-concept? Which type of life insurance policy is this? C) Insurance carriers producer Which of the following is a TRUE statement? 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) Insurability D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? y=f(x)=10x5x+1535if0x3if3