D) Offer and acceptance must be involved, B) Equal consideration is required between the involved parties, A contract requires B) Equal consideration is required between the involved parties B) written contract Which of the following BEST describes a conditional insurance contract? A policyowner is prohibited from making any changes to the policy without the beneficiarys written consent under which beneficiary designation? A double indemnity benefit will be payable to Matts beneficiary is Matt, All of the following riders can increase the death benefit amount EXCEPT, All of these are valid policy dividend options for a life insurance policyowner EXCEPT, The premium for a Modified whole life policy is, Lower than the typical whole life policy during the first few years and then higher than typical for the remainder, A nonparticipating company is sometimes called a(n), Intentional withholding of material facts that would affect an insurance policys validity is called a(n), Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT. A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? express authority Ken is a producer who has obtained Consumer Informations Reports under false pretenses. 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? a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. B) errors and omissions Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? B) Apparent A contract that requires certain conditions or acts by the insured individual. 2. ______ is NOT an element of a valid contract. implied authority The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? Which of the following are the premium payments for a universal life policy NOT used for? Insurable interest can be based on the love and affection of individuals related by blood or law An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of The period of coverage The face amount The premium payments The cash value, at a predetermined date or age, regardless of the insured's health, A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of the insured's health only if the insured provides evidence of insurability anytime at the policyowner's request typically with no change in premium, Pre-death distributions will become taxable, Under a Modified Endowment Contract, what are the likely tax consequences? 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 D) A contract where only one party makes any kind of enforceable contract. Which market index is normally associated with an indexed annuitys rate of return? What does the word level in Level Term describe? c. income earned by Pat's spouse. Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Which of the following BEST describes a conditional insurance contract? (A) Both parties to the contract are bound to the terms. Bob dies 12 months later. Which of the following is a requirement to attain an Utah resident producer license? 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? A policy containing exclusions or limits that are not clearly disclosed to the policyholder, or a premium that is significantly higher than the risk covered, could be considered unfair or one-sided. What guarantees that the statements supplied by an insurance applicant are true? 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. 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? Provide death benefits Provide money for retirement Provide living benefits Provide money for college, The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys, protect consumers with guidelines regarding credit reporting and distribution, The Fair Credit and Reporting Act's main purpose is to assist in the underwriting of insurance policies protect insurers from an applicant's misrepresentation protect consumers with guidelines regarding credit reporting and distribution assist an insurer in determining an applicant's creditworthiness, What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? Typically, bilateral contracts involve an equal obligation or. Only the insured can change the provisions Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. Please check below to know the answer. 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 The present cash value of the policy equals $250,000. 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? Bob dies 12 months later. C) Legal purpose D) Authority given to an agent to act outside the scope of the agency agreement, 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, Legal purpose is a term used in contract law meaning All of these are typically sources of underwriting information for life or health insurance EXCEPT. Which of the following best describes a symbol. Which of the following is a TRUE statement? Write a summary of the main ideas. A) express authority Sharon is the policyowner of a $500,000 life insurance policy. B) Offer and acceptance D. $2,863. A) offer and acceptance A) A contract that requires certain conditions or acts by the insured individual When the term insurance expires. Consideration clause If the consumer price index had gone up 4%, how much may Ron increase the face value of the policy? D) conditions, The authority granted to a licensed producer is provided via the apparent Law of Agency What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Who assumes the investment risk with a fixed annuity contract? C) Insurable interest Term, whole, and universal life insurance. D) Countersignature, 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 power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? c) a contract must be in writing. The gap between the total death benefit and the policys cash value. Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. The policies continue in force with no change. What kind of policy is this? An insurer exaggerating its dividends in a magazine advertisement. A) Authority given in writing to an agent in the agency agreement In a life or health insurance contract, "consideration" would be the, statements made in the application and the premium, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called. Pay owns a 20-pay life policy with a paid-up dividend option. 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 The type of annuity she is seeking is called. 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. Which of the following products would allow him to accomplish this? Legal B) guarantee What is the meaning of par value of stock with respect to the corporate form of organization? What was his total bill? promises made A life insurance policy that is subject to a contract interest rate is referred to as. The terms of the policy typically outline these conditions . 2003-2023 Chegg Inc. All rights reserved. B) the insurer's obligations are dependent upon certain acts of the insured individual Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? voidable The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. discreet apparent implied express, Bob and Tom start a business. His insurance agent told him the policy would be paid up if he reached age 100. C) Law of large numbers 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. 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