which of the following best describes a conditional insurance contract

B) premium only 2003-2023 Chegg Inc. All rights reserved. ______ is NOT an element of a valid contract. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? 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? purpose, Insurable interest does NOT occur in which of the following relationships? If the other agreement or condition is performed, then the conditional contract is . Food C. Plant D. Zucchini. C) Legal purpose Authority given in writing to an agent in the agency agreement Write a summary of the main ideas. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. A. Bob dies 12 months later. Which of the following are the premium payments for a universal life policy NOT used for? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. A (D) Only one party is legally bound to the contract. The present cash value of the policy equals $250,000. A) Parties involved in the contract A) Competent parties A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. producer Which of the following products would allow him to accomplish this? C.$2,113 Which of these statements is true? Connect the text to your own experiences. D) Utmost good faith, What does the insurance term "indemnity" refer to? Both partners are still married at the time of Bob's death. Under a life insurance policy, what does the insuring clause state? 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. A) offer the terms must be accepted or rejected in full Which of these statements is true? A symbol is a mark, sign or word that indicates, signifies, or is understood as representing an idea, object, or relationship, best describes a symbol. Required fields are marked *. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? the contract is voidable upon proof of fraud. written contract A contract that requires certain conditions or acts by the insured individual. What is created after policy proceeds are obtained in a lump sum and then immediately invested? 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. Legal collateral, What is implied authority defined as? d) an agreement requires a definite offer and an indefinite acceptance. Events are those which cannot be controlled by either . C) at the time of death Log in for more information. B) the contract must be aleatory C) apparent authority Apparent The gap between the total death benefit and the policys cash value. A) there must be an offer and acceptance What is a corridor in relation to a Universal Life insurance policy? 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? 2 See answers Principal Capacity, All of the following are elements of an insurance policy EXCEPT Which of the following statements correctly describes a contract of indemnity? This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? B) at the time of application 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). unilateral, Ambiguities in an insurance policy are always resolved in favor of the The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? Which of the following does a producer NOT have a fiduciary responsibility to? All of the following are examples of pure risk EXCEPT. D) Only the insured is legally bound, Bob and Tom start a business. She would like to borrow $15,000 against the cash value. Which of these is considered to be a disadvantage of owning this type of annuity? Are you looking for the correct answer to the question Which of the following BEST describes a conditional insurance contract?? If the insured dies at any time during the 5 years, his beneficiary will receive the policy's face value. Parent and children A) Parties involved must be competent It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. 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? there must be an offer and acceptance Which of the following BEST describes a conditional insurance contract? 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. B) the insurer's obligations are dependent upon certain acts of the insured individual which of the following best describes a conditional insurance contract? B) Bob's estate Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? underwriting Loans obtained by a policyowner against the cash value of a life insurance policy. 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? 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. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? A) insured Intent, The deeds and actions of a producer indicate what kind of authority? Term, whole, and universal life insurance. Implied $0 $5,000 $10,000 $15,000, Determine financial strength of an insurance company, What is the primary purpose of a rating service company such as A.M Best? (D) Only one party is legally bound to the contract. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. A) underwriting During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. When initial premium is collected and policy is issued. What is this called? 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? Which of the following is a reinstatement condition? An unintentional violation of Utah insurance law could lead a producer to a fine of up to _____ per violation. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured.

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