implied 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. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Who prosecutes crimes that involve the violation of insurance laws that fall under US Code 1033? producer The policies continue in force with no change. 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 $2,406 Competent parties Bob dies 12 months later. A non-contributory health insurance plan helps the insurer avoid. both parties consent to the contract. Adhesion clause If she dies 15 years after the policy's inception date, how much will her beneficiary receive? performance is conditioned upon a future occurrence. A contract that requires certain conditions or acts by the insured individual, According to life insurance contract law, insurable interest exists, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Premium clause Have a great time ahead. Pay owns a 20-pay life policy with a paid-up dividend option. Adjustable whole life Universal life Decreasing term life Limited whole life, Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? insurer A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? A) Competent parties D) Personal contract, The importance of a representation is demonstrated in what rule? Law of Agency C) the authority to represent the insurer A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3 In this situation, who will receive Bob's policy proceeds? C) adhesion A) producer's apparent authority Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? D) Consideration clause, When the principal gives the agent authority in writing, it's referred to as 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? A) Sister and brother C) Insurable interest D) Business owner and business client, Under a contract of adhesion, C) negotiation between the involved parties What would happen if a life insurance applicant is given a conditional receipt? Which of the following BEST describes a conditional insurance contract? Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape Implied Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. issuance of the policy Offering payment of approved claims within 30 days after affirming liability. Which of the following policies does NOT build cash value? Which of the following best describe the term definition. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. which of the following best describes a conditional insurance contract Which of the following BEST describes a conditional insurance contract? Contestability clause, In order for a contract to be valid, it must Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? (A) Both parties to the contract are bound to the terms. A) Parties involved in the contract Which of the following best describes how you analyze a fiction text? Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Under the McCarran-Ferguson Act, what is the minimum penalty for this? Vegetable B. contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Chapter3. Legal Concepts of the Insurance Contract Which type of annuity guarantees a stated number of income payments, whether or not the annuitant is still alive to receive them? Legal Which of the following statements is true? If xxx actually turns out to be 131313, what do you think of the claim? Sharon is the policyowner of a $500,000 life insurance policy. C) The insured and the insurer contribute equally to the contract. The gap between the total death benefit and the policys cash value. 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. Because of this, an insurance contract is considered B) Indemnity B) A contract that has the potential for the unequal exchange of consideration for both parties Which of the following statements about aleatory contracts is NOT true? Which course of action is the insurer entitled to when deliberate concealment is committed by the insured? Which military service exclusion clause would pay upon his death? Both partners are still married at the time of Bob's death. D) Principal Capacity, A unilateral contract is one in which The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? 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. The authority granted to a licensed producer is provided via the Insurance Cram Ch. 6 Flashcards | Chegg.com D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's c) a contract must be in writing. Sister and brother Parent and children Business partners Business owner and business client, The deeds and actions of a producer indicate what kind of authority? D) Utmost good faith, What does the insurance term "indemnity" refer to? Which of the following statements is true? GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. She would like to borrow $15,000 against the cash value. C) Only the insurer is legally bound 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? 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? A) Sue the insured 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. Sharing commissions with a producer licensed in the same line of business. C) Competent parties A (D) Only one party is legally bound to the contract. Connect with others, with spontaneous photos and videos, and random live-streaming. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. Which of the following is the best descriptive word? A - Weegy In this situation, who will receive Bob's policy proceeds? 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? State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Which of the following best describes the MIB? Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. C) Insurance carriers D) Evident authority, Which of the following is an example of the insured's consideration? C.$2,113 B) A contract that has the potential for the unequal exchange of consideration for both parties 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 For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Rob recently died at age 60. All of the following statements about Carl's coverage are correct. This rider is called a(n). Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? Chapter 3 Legal Concepts of the Insurance Contract - Quizlet The terms of the policy typically outline these conditions . 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. The policies continue in force with no change. A) fiduciary bond Conditional, Under a contract of adhesion, 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? It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. legal reserve, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? When initial premium is collected and policy is issued. What is the name of the provision which states that a copy of the application must be attached to the policy when issued?