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? B) written contract D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's Which of the following would be a valid reason why a policy premium would be higher than the standard premium? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. 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 there must be legal reasons for entering into the contract 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. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. 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? When does a life insurance policy typically become effective? Question. A) A contract that requires certain conditions or acts by the insured individual The authority granted to a licensed producer is provided via the A) Sue the insured Notify me of follow-up comments by email. D) Tom, The deeds and actions of a producer indicate what kind of authority? A) express authority B) issuance of the policy 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? C) A contract where one party "adheres" to the terms of the contract Answer Explanation: A contract that requires certain conditions or acts by the insured individual. 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). consideration weegy. A) warranty Because of this, an insurance contract is considered A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). $2,406 Which contract element is insurable interest a component of? How do insurers predict the increase of individual risks? Because you're already amazing. conditional Which of the following is true of the law of contracts? there is the potential for an unequal exchange of value Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. Which of the following statements is true? A) implied authority Vegetable B. Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. d) an agreement requires a definite offer and an indefinite acceptance. What does the Group Life underwriting risk selection process help protect insurance companies from? When initial premium is collected and policy is issued. Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Which of the following best describes how you analyze a fiction text? be in writing 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. In exchange, the policyowner pays premiums. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. Expert answered|Malekith22|Points 0| Log in for more information. Bob and Tom start a business. C) promises made Of the following dividend options, which of these is taxable? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. The type of annuity she is seeking is called. She would like to borrow $15,000 against the cash value. both parties consent to the contract. Loans obtained by a policyowner against the cash value of a life insurance policy. Variable life insurance and Universal life insurance are very similar. 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? 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 Legal purpose Term Straight Life Endowment Variable Life, A life insurance policy that has premiums fully paid up within a stated time period is called stated payment insurance limited universal insurance stated modified insurance limited payment insurance, Reggie purchased a life insurance policy with a face amount of $500,000. 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. Restoring an insured to the same condition as before a loss is an example of the principle of. Because insurance premiums are tax-deductible Because dividends are already subject to capital gains Because dividends are payable directly to the policyholder Because dividends are considered to be a return of premium, A type of insurer that is owned by its policyowners is called domestic mutual stock in-house, What is considered to be the primary reason for buying life insurance? aleatory A contract that requires certain conditions or acts by the insured individual. Law of Agency performance is conditioned upon a future occurrence. 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? C) A contract where one party adheres to the terms of the contract Sister and brother Only the insured pays the premium Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 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". underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. Which market index is normally associated with an indexed annuitys rate of return? For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. 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? Sharon is the policyowner of a $500,000 life insurance policy. A) One party is restored to the same financial position the party was in before the loss occurred B) The unequal exchange of value or consideration for both parties C) One party (the insurance company) prepares the contract with no negotiation between the applicant and insurer D) Only one party (the insurer) makes any kind of enforceable promise C) Contract must have a legal purpose Preferred risk policies with reduced premiums are issued by insurance companies because the insured has, Better than average mortality or morbidity experience. Ken is a producer who has obtained Consumer Informations Reports under false pretenses. unilateral, Ambiguities in an insurance policy are always resolved in favor of the How does life insurance create an immediate estate? Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. D) Conditional, Which of the following is NOT a requirement of a contract? Asked 10/6/2017 7:04:21 AM. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? It is a government agency that collects medical information on the insured from the insurance companies C. It is a member organization that protects against insolvent insurers D. 2. 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. 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 if the insured lives beyond the 5 years, no benefits are payable. Juvenile insurance Family income insurance Spouse insurance Term rider, A life insurance policy written on one contract for two people in which it is payable upon the first death is called Split Shared Joint Survivorship, Level premium permanent insurance accumulates a reserve that will eventually equal the face amount of the policy pay a dividend to the policyowner require the policyowner to make periodic withdrawals become larger than the face amount, A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n) adjustable policy limited pay policy level term policy variable universal policy, term, whole, and universal life insurance, What types of life insurance are normally used for key employee indemnification?
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