C) consideration A) producer's apparent authority Authority given to handle claims and process payments $2,406 The present cash value of the policy equals $250,000. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Premiums paid plus interest earned is returned to the beneficiary. written contract Only the insurance company has legal obligations. D) an offer and acceptance of the contract terms, D) an offer and acceptance of the contract terms, In an insurance contract, the applicant's "consideration" is the If xxx actually turns out to be 131313, what do you think of the claim? 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). B) Rescind the policy I hope you got the correct answer to your question. Which of these would NOT be an unfair claims practice? D) Utmost good faith, What does the insurance term "indemnity" refer to? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? 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. 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 B) Unequal consideration 1 pt. C) promises made B) A contract that has the potential for the unequal exchange of consideration for both parties. Which of these is considered to be a Living Benefit option in a life insurance policy? Insurance Cram Ch. 6 Flashcards | Chegg.com D) misrepresentation, Which of the following is NOT required in the content of a policy? 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Anheuser-Busch InBev is trying to reduce its water usage. What is the purpose for having an accelerated death benefit on a life insurance policy? Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this? 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? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Business partners One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Definition refers to a description which is given to a word, idea or phenomenon . What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? C) Authority given to handle claims and process payments D) A contract where only one party makes any kind of enforceable contract, Answer:A) A contract that requires certain conditions or acts by the insured individual. What does the Group Life underwriting risk selection process help protect insurance companies from? 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. Plot this function and determine if she is ready to attempt the Bluenose Marathon. The gap between the total death benefit and the policys cash value. Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? A) Express Which of the following best describes a symbol. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? 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 A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? Which statement is CORRECT when describing a contract of adhesion? Which of the following best describes the MIB? His insurance agent told him the policy would be paid up if he reached age 100. Joint life policy Survivorship life policy Dual life policy Multiple life policy, A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called whole life group life credit life universal life, Can be converted to permanent coverage without evidence of insurability, Donald is the primary insured of a life insurance policy and adds a children's term rider. At what point may a producer sell insurance for an insurer? In this situation, who will receive Bob's policy proceeds? C) there must be legal reasons for entering into the contract d) an agreement requires a definite offer and an indefinite acceptance. What is created after policy proceeds are obtained in a lump sum and then immediately invested? What is a corridor in relation to a Universal Life insurance policy? producer If she dies 15 years after the policy's inception date, how much will her beneficiary receive? A) A contract that requires certain conditions or acts by the insured individual The gap between the total death benefit and the policy's cash value The gap between when a claim is filed and when the death benefit is received The amount of interest that has accumulated in the policy's cash value The point in time when the policy's cash value reaches $0, Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. Premium clause Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. Chapter3. Legal Concepts of the Insurance Contract An insurance applicant with a below-average likelihood of loss is typically considered to be a. C) apparent authority discreet apparent implied express, Bob and Tom start a business. Policyowner has the right to select the investment which will provide the greatest return. A) the appearance of authority an insurer gives to its agent Both partners are still married at the time of Bob's death. 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. Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? Because of this, an insurance contract is considered aleatory C) claim forms Which of the following BEST describes a conditional insurance contract? apparent A Modified Endowment Contract (MEC) is best described as, A life insurance contract which accumulated cash values higher than the IRS will allow, Doctors pooling their money to cover malpractice exposures, The free-look provision gives the policyowner, The right to return the policy for a full refund within a specified number of days. C) Only the insurer is legally bound Coverage decreases automatically Coverage increases automatically Coverage remains as long as proof of insurability is provided Coverage is eliminated, Joe has a life insurance policy that has a face amount of $300,000. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. How often must the Commissioner examine each domestic insurance company? 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? Which of these features are held exclusively by variable universal life insurance?
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