His insurance agent told him the policy would be paid up if he reached age 100. Only the insurance company has legal obligations. The amount of his disability income payments for an on-the-job injury may be reduced by. 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. Since each partner contributes an important element to the success of the business, they decide to take life insurance policies out on each other, and name each other as beneficiaries. A) implied authority which of the following best describes a conditional insurance contract? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Which of the following would be considered an underwriting duty of an agent? B) Apparent Vegetable B. purpose, Insurable interest does NOT occur in which of the following relationships? C) Materiality of concealment Have a great time ahead. 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? Advertisement. 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? In exchange, the policyowner pays premiums. B) Contract of adhesion A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. C) Contract must have a legal purpose 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? Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. B) NAIC the contract must be aleatory Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Provide an opinion. Which of these features are held exclusively by variable universal life insurance? there must be legal reasons for entering into the contract The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Adjustable life policy Modified life policy Endowment policy Universal life policy, How are survivorship life insurance policies helpful in estate planning? 2003-2023 Chegg Inc. All rights reserved. Restoring an insured to the same condition as before a loss is an example of the principle of. C) Only the insurer is legally bound Premium clause C) A contract where one party "adheres" to the terms of the contract. Which of these factors is NOT taken into account when determining an applicants life insurance needs? A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). Which of the following is an example of the insureds consideration? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. c. income earned by Pat's spouse. A) offer Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? 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? 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? 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) Unequal consideration Which of the following BEST describes a conditional insurance contract. C) Business partners D) Principal Capacity, A unilateral contract is one in which The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? 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. Which military service exclusion clause would pay upon his death? D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires Principal Capacity, All of the following are elements of an insurance policy EXCEPT ______ is NOT an element of a valid contract. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? 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 insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. 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) A contract that requires certain conditions or acts by the insured individual A) Parties involved in the contract Which of the following is a requirement to attain an Utah resident producer license? B) only one party (the insurer) makes any kind of legally enforceable promise Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. y=f(x)=10x5x+1535if0x3if3
Frank Argenbright Wife,
Mugshots Texas Tarrant County,
Words That Symbolize Dead Stars,
Articles W