Which of the following statements is true? C) The insured and the insurer contribute equally to the contract. Insurance contracts are unilateral contracts. A) the appearance of authority an insurer gives to its agent Which of the following BEST describes a conditional insurance contract? Identify the type of financing (stock or bond) that best answers the question. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called This rider is called a(n). C) Contract must have a legal purpose Legal C) claim forms If xxx actually turns out to be 131313, what do you think of the claim? Incontestable period Probation period Reinstatement period Grace period, The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of these is NOT a characteristic of the Accelerated Death Benefit option? Elizabeth is the beneficiary of a life insurance policy. What guarantees that the statements supplied by an insurance applicant are true? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? Legal purpose Which of the following is a requirement to attain an Utah resident producer license? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Only the insurance company has legal obligations. Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. C) fiduciary trust C) Implied Only the insured pays the premium Cash surrender Extended term insurance Reduced paid-up insurance Life income annuity, Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies? Reduction of premium dividend option Extended term option Paid-up option Cash dividend option, Net death benefit will be reduced if the loan is not repaid, Joanne has a $100,000 whole life policy with an accumulated $25,000 of cash value. B) producer If thats the case, you dont have to worry anymore. Both partners are still married at the time of Bob's death. It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. conditions, Legal purpose is a term used in contract law meaning Which of the following does a producer NOT have a fiduciary responsibility to? C) Business partners The policies continue in force with no change. warranty 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. A) A contract that requires certain conditions or acts by the insured individual C) Consideration Insurer's promise to pay benefits there is the potential for an unequal exchange of value fichoh. What is the meaning of par value of stock with respect to the corporate form of organization? D) Utmost good faith, What does the insurance term "indemnity" refer to? B) Offer and acceptance Bob dies 12 months later. B) only one party (the insurer) makes any kind of legally enforceable promise implied Which of the following policies does NOT build cash value? Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. 0 Answers/Comments. After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? conditional Which of the following is a TRUE statement? Who is responsible for assembling the policy forms for insureds? A) definitions D. $2,863. The policy may be paid up early by using policy dividends. How do insurers predict the increase of individual risks? ______ is NOT an element of a valid contract. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. B) concealment Principal Capacity, All of the following are elements of an insurance policy EXCEPT the contract must be aleatory Implied D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's B) other insurance Which of the following BEST describes a conditional insurance contract? LIFE INSURANCE LICENSING EXAM Flashcards | Chegg.com written contract B) A contract that has the potential for the unequal exchange of consideration for both parties At what point may a producer sell insurance for an insurer? D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires Which Of The Following Best Describes A Conditional Insurance Contract. 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. Multiple-choice. What kind of policy is this? B) NAIC A) Insurable interest 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. D) statements made in the application only, C) statements made in the application and the premium, According to life insurance contract law, insurable interest exists Nothing $100,000 $250,000 $500,000, Which type of life insurance is normally associated with a Payor Benefit rider? Which Of The Following Best Describes A Conditional Insurance Contract 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 present cash value of the policy equals $250,000. However, corporations also can raise money by selling bonds or issuing additional shares of stock. Flashcards - Ch. 15 - Disability Income - FreezingBlue Under the McCarran-Ferguson Act, what is the minimum penalty for this? D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? 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? Conditional Contracts: Everything You Need to Know - UpCounsel A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). there must be an offer and acceptance A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? The policy automatically converts to whole life after the 10-year period The face amount will remain constant and the premium will increase over the 10-year period The premium will remain constant and the face amount will increase over the 10-year period The face amount and premium will remain constant over the 10-year period, will no longer provide insurance protection, Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. 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 be filed with the state What are conditions in an insurance policy? 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? 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? 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? Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Required fields are marked *. D) imposed authority, What makes an insurance policy a unilateral contract? Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and D) Conditional, Which of the following is NOT a requirement of a 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. A) insured This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). Zucchini is the best descriptive word. 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.

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