D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? Loans obtained by a policyowner against the cash value of a life insurance policy. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? d) an agreement requires a definite offer and an indefinite acceptance. D) legal reserve, In an insurance contract, the element that shows each party is giving something of value is called B) Only the insured can change the provisions Which statement is CORRECT when describing a contract of adhesion? C) Competent parties Which of the following is a reinstatement condition? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Which of the following BEST describes a conditional insurance contract? contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Intent, The deeds and actions of a producer indicate what kind of authority? 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. Which of the following BEST describes a conditional insurance contract. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Identify the type of financing (stock or bond) that best answers the question. What does the Group Life underwriting risk selection process help protect insurance companies from? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer A) offer Contestability clause, In order for a contract to be valid, it must Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? the policy provides a straight, level $100,000 of coverage for 5 years. B) Indemnity Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? underwriting His insurance agent told him the policy would be paid up if he reached age 100. A) offer and acceptance 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. D) Intent, Which contract element is insurable interest a component of? consideration The amount of his disability income payments for an on-the-job injury may be reduced by. 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? 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. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? D) Competent parties, Which of the following BEST describes a conditional insurance contract? Which of the following Best Describes a Conditional Insurance Contract Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. If the other agreement or condition is performed, then the conditional contract is . 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". If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Multiple-choice. if the insured lives beyond the 5 years, no benefits are payable. 1 pt. 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? conditional A) there is the potential for an unequal exchange of value b) a contract is an agreement enforceable at law. Which Of The Following Best Describes A Conditional Insurance Contract. A) Competent parties Notify me of follow-up comments by email. 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. be signed and witnessed by an attorney Which of the following would be considered an underwriting duty of an agent? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called the contract must be aleatory A) Insurable interest Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. What would happen if a life insurance applicant is given a conditional receipt? Which of the following would be an act of Unfair Discrimination by an insurer? Sharing commissions with a producer licensed in the same line of business. Intentional withholding of material facts that would affect an insurance policy's validity is called a(n). The type of annuity she is seeking is called. 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? Events are those which cannot be controlled by either . (B) Both parties adhere to the contract. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? 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 Best Describes A Conditional Insurance Contract, 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, D) A contract where only one party makes any kind of enforceable contract. What is a corridor in relation to a Universal Life insurance policy? What guarantees that the statements supplied by an insurance applicant are true? B) Apparent A) Legal Connect with others, with spontaneous photos and videos, and random live-streaming. Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? What was his total bill? B) the unwritten authority that the agent is assumed to have B) A contract that has the potential for the unequal exchange of consideration for both parties C) Business partners 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? If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. C) negotiation between the involved parties guarantee What kind of policy is this? According to the Affordable Care Act (ACA), insurers can no longer deny health coverage due to pre-existing conditions unless that plan is a (n) Grandfathered plan Accident plan Individual plan Group plan Grandfathered plan Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. written contract If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. Under a life insurance policy, what does the insuring clause state? Julie has a $100,000 30-year mortgage on her new home. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? Both partners are still married at the time of Bob's death. 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. C.$2,113 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 In the case of an insurance contract, the contracting parties are the claimant and the insurer. discreet apparent implied express, Bob and Tom start a business. B) only one party (the insurer) makes any kind of legally enforceable promise there must be legal reasons for entering into the contract Because you're already amazing. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. Advertisement. D) misrepresentation, Which of the following is NOT required in the content of a policy? Policy loans are disallowed The premium payments will be tax deductible Pre-death distributions are typically taxable Withdrawals will be prohibited, When a whole life policy is surrendered, income taxes may be owed, All of these statements concerning whole life insurance are false EXCEPT Policyowner can take out a policy loan up to the face amount When a whole life policy is surrendered, income taxes may be owed Coverage is normally temporary The death benefit is not affected by outstanding loans, A life insurance policy which contains cash values that vary according to its investment performance of stocks is called Increasing Term Life Modified Whole Life Variable Whole Life Adjustable Whole Life, Which of these riders will pay a death benefit if the insured's spouse dies? How soon can the benefit payments begin with a deferred annuity? 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.

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