Legal The authority granted to a licensed producer is provided via the 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? Elizabeth is the beneficiary of a life insurance policy. C) the terms must be accepted or rejected in full Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. 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) Contract of adhesion A) Sister and brother 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 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. C) insurer The insurers obligation to pay a death benefit upon an approved death claim. c) a contract must be in writing. C) claim forms Business partners 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. promises made Anheuser-Busch InBev is trying to reduce its water usage. A unilateral contract is one in which only one party makes a legally binding guarantee. A) A contract that requires certain conditions or acts by the insured individual. Which of the following best describes how you analyze a fiction text? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? acceptance 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? collateral, What is implied authority defined as? C) fiduciary trust Which of the following is an example of the insureds consideration? consideration C) Law of Agency A) Sue the insured C.$2,113 Which of these features are held exclusively by variable universal life insurance? Which of the following is the best descriptive word? Updated 10/6/2017 9:10:03 AM. Because you're already amazing. Who assumes the investment risk with a fixed annuity contract? C) at the time of death Science Study Guide Questions. Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? Which of these riders will pay a death benefit if the insureds spouse dies? What is a corridor in relation to a Universal Life insurance policy? warranty In this situation, who will receive Bob's policy proceeds? 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. 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 statements regarding the annuitant is CORRECT? Bob dies 12 months later. The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? C) representation C) Materiality of concealment Competent parties C) consideration B) only one party (the insurer) makes any kind of legally enforceable promise the terms must be accepted or rejected in full 2003-2023 Chegg Inc. All rights reserved. A) Competent parties C) apparent authority If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. B) the contract must be aleatory C) Bob's spouse This is also known as a non-negotiable insurance contract, or an automatic contract. 2003-2023 Chegg Inc. All rights reserved. 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? 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. Write a summary of the main ideas. D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? A) Insurability How many days is a temporary producers license valid? 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? other insurance Assume that the product will be tested on 202020 randomly selected stained garments, and let xxx denote the number of these garments from which the stains will be completely removed. When does a life insurance policy typically become effective? purpose, Insurable interest does NOT occur in which of the following relationships? Which of the following is a requirement to attain an Utah resident producer license? Which of the following would be an act of Unfair Discrimination by an insurer? 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"? 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? 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 The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? discreet apparent implied express, Bob and Tom start a business. What is the advantage of adding this rider? Which Of The Following Best Describes A Conditional Insurance Contract. 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 What guarantees that the statements supplied by an insurance applicant are true? conditions, Legal purpose is a term used in contract law meaning After being properly appointed by the insurer. The annuitants life expectancy determines the annuity payments, No one may be denied coverage by an insurance company due to, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n). B. the contract must be aleatory Express 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". Because of this, an insurance contract is considered Under the McCarran-Ferguson Act, what is the minimum penalty for this? C) Indemnity contract Provide funds to help fund retirement Provide funds to help pay taxes Provide funds for funeral expenses Provide tax deductions for premium payments, lower than the typical whole life policy during the first few years and then higher than typical for the remainder, The premium for a Modified whole life policy is higher than the typical whole life policy during the first few years and then lower than typical for the remainder lower than the typical whole life policy during the first few years and then higher than typical for the remainder normally graded over a period of 20 years level for the first 5 years then decreases for the remainder of the policy, The type of policy which pays on the death of the last person is called joint life survivorship life dual life shared life, A life insurance policy that is subject to a contract interest rate is referred to as adjustable life group life term life universal life, a policy that is paid up after only one payment, A single premium cash value policy can be described as a policy that is paid up after only one payment a policy that only requires an annual payment a policy that is guaranteed issue a policy that covers two or more lives, A limited payment whole life policy provides protection for 20 years lifetime protection protection for more than one person discounted premiums, A policyowner may change two policy features on what type of life insurance? Intent, The deeds and actions of a producer indicate what kind of authority? Eventually, they retire and dissolve the business. apparent Notify me of follow-up comments by email. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. definitions Describe the structure. Which scenario would most life insurance policies exclude coverage for? What are an applicants statements concerning occupation, hobbies, and personal health history regarded as? Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. Both partners are still married at the time of Bob's death. D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's How does life insurance create an immediate estate? What types of life insurance are normally used for key employee indemnification? Which of these statements is true? Which of the following best describes the MIB? How soon can the benefit payments begin with a deferred annuity? Expert answered| selymi |Points 23307|. D) Tom, The deeds and actions of a producer indicate what kind of authority? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. Which of the following statements about aleatory contracts is NOT true? A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Because of this, an insurance contract is considered Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Advertisement. Which of the following statements is true? 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. Both partners are still married at the time of Bob's death. This rider is called a(n). Eventually, they retire and dissolve the business. C) Charge more premium the policy provides a straight, level $100,000 of coverage for 5 years. The face amount and premium will remain constant over the 10-year period. Connect with others, with spontaneous photos and videos, and random live-streaming. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. AzAnswer team is here with the right answer to your question. 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. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 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. y=f(x)=10x5x+1535if0x3if3