A) Parties involved must be competent Question and answer. Which of the following best describe the term definition. What is the difference between insurance condition and warranty? Which of the following policies does NOT build cash value? B) producer The gap between the total death benefit and the policys cash value. After being properly appointed by the insurer. Describe the structure. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. C.$2,113 fichoh. It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? All of the following are examples of a Business Continuation Plan EXCEPT. if the insured lives beyond the 5 years, no benefits are payable. 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. c) a contract must be in writing. Insurance interest does NOT occur in which of the following relationships? voidable Modified Whole Life Decreasing Term Life Adjustable Life Whole Life, Decreasing term life insurance is often used to provide retirement funds provide coverage for a home mortgage accumulate cash value provide coverage for estate taxes, Which of these is NOT subject to income taxation under a Modified Endowment Contract (MEC)? Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? The policy may be paid up early by using policy dividends. implied authority A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. acceptance C) apparent authority Net death benefit will be reduced if the loan is not repaid No interest will be charged on loan balance Term life policies are the only type of insurance that allows policy loans A loan can be taken out for up to the face amount of the policy, Ownership of a life insurance policy may be temporarily transferred with a(n) collateral assignment absolute assignment transferable assignment beneficiary assignment, provide evidence of insurability to the insurer, In order to activate the reinstatement clause of a lapsed life insurance policy, the insured MUST remit all past-due premiums within the grace period provide evidence of insurability to the insurer resubmit a new life insurance application provide a valid reason for the lapse, Which of the following is considered to be an alternative to a life settlement? Julie has a $100,000 30-year mortgage on her new home. A) Insurable interest What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? conditional 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 c. income earned by Pat's spouse. unilateral, Ambiguities in an insurance policy are always resolved in favor of the 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 The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? Insurance contracts are unilateral contracts. A marathon is 42.2 kilometers. a. medical expenses covered under Pat's employer-sponsored group health insurance. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. __________. Which contract element is insurable interest a component of? Expert answered|Malekith22|Points 0| Log in for more information. The present cash value of the policy equals $250,000. $2,406 After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Parent and children 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. C) claim forms 1 pt. Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Loans obtained by a policyowner against the cash value of a life insurance policy. D) Insurance producers, If a material warranty violation on the part of the insured is found, what recourse does an insurer have? Under the McCarran-Ferguson Act, what is the minimum penalty for this? 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". The death benefit would be. B) concealment B) A contract that has the potential for the unequal exchange of consideration for both parties 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? b) a contract is an agreement enforceable at law. It is the means by which one or more parties bind themselves to certain promises. 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. 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? Premium clause Which of the following BEST describes a conditional insurance contract. Andy the annuitant dies before the annuity start date. B) 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 ______ is NOT an element of a valid contract. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? 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. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. Which of the following products would allow him to accomplish this? B) acceptance Contestability clause, In order for a contract to be valid, it must All of the following statements about Carl's coverage are correct. Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. C) Indemnity contract B) errors and omissions $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? Only the insured can change the provisions Accelerated death benefit An example of an unfair claims practice would be A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". A) One party is restored to the same financial position the party was in before the loss occurred. A) there must be an offer and acceptance Which of the following would be considered an underwriting duty of an agent? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. C) Contract must have a legal purpose 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. underwriting Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract?
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which of the following best describes a conditional insurance contract