A) express authority the policy provides a straight, level $100,000 of coverage for 5 years. Which of the following statements correctly describes a contract of indemnity? Which of the following is an annuity that is linked to a market-related index? D) Evident authority, Which of the following is an example of the insured's consideration? Parent and children Updated 10/6/2017 9:10:03 AM. Advertisement. guarantee Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Which of these statements regarding the annuitant is CORRECT? C) Implied Legal 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? Authority given to handle claims and process payments Which of these is considered to be a disadvantage of owning this type of annuity? Events are those which cannot be controlled by either . Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. c. income earned by Pat's spouse. 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? producer's apparent authority This rider is called a(n). In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. 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? be filed with the state d) an agreement requires a definite offer and an indefinite acceptance. How soon can the benefit payments begin with a deferred annuity? D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? What kind of policy is this? B) Only the insured can change the provisions 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 A) Unilateral contract D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. Only the insured pays the premium In the case of an insurance contract, the contracting parties are the claimant and the insurer. The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. B) only one party (the insurer) makes any kind of legally enforceable promise When handling premiums for an insured, an agent is acting in which capacity? D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? 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. B) conditional 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) Offer and acceptance 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. Write a summary of the main ideas. An insurer exaggerating its dividends in a magazine advertisement. __________. The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. c) a contract must be in writing. Legal purpose voidable C) adhesion Which of the following best describe the term definition. 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? Who is responsible for assembling the policy forms for insureds? 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. Which of these is considered to be a Living Benefit option in a life insurance policy? What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? be signed and witnessed by an attorney A) there must be an offer and acceptance Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? What is the meaning of par value of stock with respect to the corporate form of organization? Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? How do insurers predict the increase of individual risks? 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". Which of these features are held exclusively by variable universal life insurance? 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 conditions, Legal purpose is a term used in contract law meaning 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? B) guarantee In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Food C. Plant D. Zucchini. D) Competent parties, Which of the following BEST describes a conditional insurance contract? Consideration D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called If thats the case, you dont have to worry anymore. Because of this, an insurance contract is considered apparent 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. Who assumes the investment risk with a fixed annuity contract? A) Only the insured pays the premium A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. What guarantees that the statements supplied by an insurance applicant are true? Producers act in a(n) ________ capacity when holding insurance premiums. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. performance is conditioned upon a future occurrence. Under the McCarran-Ferguson Act, what is the minimum penalty for this? B) A paid premium B) Period to which the coverage exists Authority given in writing to an agent in the agency agreement C) representation 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 statements about aleatory contracts is NOT true? promises made 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. B) NAIC 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 A) Authority given in writing to an agent in the agency agreement 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 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? 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. It is the means by which one or more parties bind themselves to certain promises. Which scenario would most life insurance policies exclude coverage for?
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