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 Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? A) definitions apparent imposed authority, In an insurance contract, the element that shows each party is giving something of value is called B) the unwritten authority that the agent is assumed to have When the term insurance expires. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Policyowner may increase or decrease the premium payments Policyowner may increase or decrease the face amount Policyowner can contribute large sums of money Policyowner has the right to select the investment which will provide the greatest return, All of the following riders can increase the death benefit amount EXCEPT Cost of Living Waiver of Premium Accidental Death Rider Guaranteed Insurability, Which of these is NOT considered to be a common life insurance nonforfeiture option? Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. D) purpose, Which principle is accurately described with the statement "Insureds are entitled to recover an amount NOT greater than the amount of their loss"? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? Insurer's promise to pay benefits A paid premium Legal purpose Intent, 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, What is implied authority defined as? The most appropriate description ascribed to the meaning of definition from the options given is ; A precise statement of the qualities of an idea, object or process. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. A life insurance policyowner does NOT have the right to, Fixed annuities provide each of the following EXCEPT. Notify me of follow-up comments by email. Only the insured can change the provisions Elizabeth is the beneficiary of a life insurance policy. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. Intent, The deeds and actions of a producer indicate what kind of authority? a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. Consideration 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. B) premium only WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. A) Make whole In order for a contract to be valid, it must. B) Apparent What was his total bill? Which of the following BEST describes a conditional insurance contract? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Bob and Tom start a business. D) Conditional, Which of the following is NOT a requirement of a contract? 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? B) A contract that has the potential for the unequal exchange of consideration for both parties B) Implied authority 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) offer C) consideration C) insurer 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? Because of this, an insurance contract is considered voidable conditional aleatory unilateral, Who is responsible for assembling the policy forms for insureds? Only the insured is legally bound, 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 What is the difference between insurance condition and warranty? Returning a portion of a premium as inducement to purchase insurance, An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of, Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out. A. Which Of The Following Best Describes A Conditional Insurance Contract 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 Which of the following statements about aleatory contracts is NOT true? C) Apparent authority A) Insurer's promise to pay benefits Conditional, Under a contract of adhesion, C) Charge more premium 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 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. B) Law of adhesion Insurer's promise to pay benefits A) insured The policies continue in force with no change. A fixed cash value A flexible premium schedule A fixed death benefit The ability to take out a policy loan, The least expensive option to pay off a 30-year mortgage balance would be convertible term life decreasing term life adjustable term life increasing term life, Pre-death distributions are typically taxable, Which of these describes the result of a modified endowment contract that failed to meet the seven-pay test? Under a life insurance policy, what does the insuring clause state? C) Insurance carriers A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the. B. D) Personal contract, The importance of a representation is demonstrated in what rule? Sharon is the policyowner of a $500,000 life insurance policy. What does the Group Life underwriting risk selection process help protect insurance companies from? I hope you got the correct answer to your question. they are "take it or leave it" contracts. 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? Period of time after the initial premium is paid and before the policy is issued Period of time it takes for a policy's underwriting to complete Period of time after a policy is issued and before it is delivered to policyowner Period of time after the premium is due but the policy remains in force, Life insurance policies will normally pay for losses arising from commercial aviation war suicide hazardous jobs, A policyowner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due? express authority Which of the following would be an act of Unfair Discrimination by an insurer? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. C) Law of Agency In this situation, who will receive Bob's policy proceeds? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. if the insured lives beyond the 5 years, no benefits are payable. Competent parties How does life insurance create an immediate estate? Which of these statements is true? Which of these factors is NOT taken into account when determining an applicants life insurance needs? Within how many days must a licensee notify the Commissioner of a change in address? All of the following statements about Carl's coverage are correct. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? 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 promises made A) express authority Lisa has recently bought a fixed annuity. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Accelerated death benefit An example of an unfair claims practice would be If threats or force is used to affect an insurance transaction, the unfair trade practice of __________ has been committed. 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 Which of the following is an annuity that is linked to a market-related index? a. medical expenses covered under Pat's employer-sponsored group health insurance. Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? Offering payment of approved claims within 30 days after affirming liability. 3. (D) Only one party is legally bound to the contract. _______ is the authority given to a producer to transact business on behalf of the insurer. Which of the following best describes a symbol. Premiums paid plus interest earned is returned to the beneficiary. Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. 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. Authority given to an agent to act outside the scope of the agency agreement, 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, When the principal gives the agent authority in writing, it's referred to as A) implied authority warranty guarantee representation collateral, there must be legal reasons for entering into the contract, Legal purpose is a term used in contract law meaning there must be an offer and acceptance the contract must be aleatory there must be legal reasons for entering into the contract the contract must be a contract of adhesion, In an insurance contract, the element that shows each party is giving something of value is called offer acceptance consideration purpose, What makes an insurance policy a unilateral contract? In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. A) Only the insured pays the premium D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? 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 Have a great time ahead. B) A contract that has the potential for the unequal exchange of consideration for both parties The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. A (D) Only one party is legally bound to the contract. (C) Both parties exchange goods of equal value. The policy may be paid up early by using policy dividends. 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? If Sharon MUST obtain Mikes signature in order to change the beneficiary, what kind of beneficiary designations is this? B) Offer and acceptance Which of the following Best Describes a Conditional Insurance Contract Posted on April 19, 2022 by Ephori London To be enforceable, a contract must be concluded by the competent parties. C) the authority to represent the insurer Field underwriting performed by the producer involves, Completing the application and collecting initial premium, An employee under a group insurance policy has the right to name a beneficiary and the right to, Convert to an individual policy in the event of employment termination. A) A contract that requires certain conditions or acts by the insured individual. The insurers obligation to pay a death benefit upon an approved death claim. 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? What is this called? Which option was chosen? C) Probability of loss A) offer and acceptance Typically, bilateral contracts involve an equal obligation or. (A) Both parties to the contract are bound to the terms. D) the authority to add provisions to a contract, C) the authority to represent the insurer, Which of the following contracts is defined as "one that restores an injured party to the condition that was present before the loss"? 30 seconds. B) Contract of adhesion 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. A) Parties involved in the contract Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. In this situation, who will receive Bob's policy proceeds? A unilateral contract is one in which only one party makes a legally binding guarantee. A) Express Describe the structure. Premium clause A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. Which of the following statements is true? Loans obtained by a policyowner against the cash value of a life insurance policy. 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. D) Evident authority, Which of the following is an example of the insured's consideration? Waiver Exclusion Rider Provision, The double indemnity provision in a life insurance policy pertains to an insured's death caused by a(n) sickness suicide accident war, An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period? B) Parent and children A) Parties involved must be competent C) Consideration In the case of an insurance contract, the contracting parties are the claimant and the insurer. B) at the time of application 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? The insurer assuming the risk is called the mutual insurer reinsurer reciprocal insurer participating insurer, Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. What guarantees that the statements supplied by an insurance applicant are true? C) Competent parties Law of Agency It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. definitions Rob recently died at age 60. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. Policyowner has the right to select the investment which will provide the greatest return. C) representation Legal purpose Which of these would NOT be an unfair claims practice? A) Legal When initial premium is collected and policy is issued. discreet apparent implied express, Bob and Tom start a business. Under the McCarran-Ferguson Act, what is the minimum penalty for this? 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. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. What is a corridor in relation to a Universal Life insurance policy? What does the word level in Level Term describe? Authority given in writing to an agent in the agency agreement 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 Which of the following BEST describes a conditional insurance contract? b) a contract is an agreement enforceable at law. Which of the following BEST describes a conditional insurance contract? Bob dies 12 months later. Express 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? How often must an insurance producers license in Utah be renewed? A) there is an element of chance and potential for unequal exchange of value or consideration for both parties What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured? After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. 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. However, corporations also can raise money by selling bonds or issuing additional shares of stock. D) the contract must be a contract of adhesion, C) there must be legal reasons for entering into the contract, Ambiguities in an insurance policy are always resolved in favor of the His insurance agent told him the policy would be paid up if he reached age 100. The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? B) acceptance What is created after policy proceeds are obtained in a lump sum and then immediately invested? Accelerated death benefit rider Waiver of premium rider Extended term option Decreasing term insurance. Peril Hazard Loss factor Liability, Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Q. Adjustable life policy Variable universal policy Universal policy Modified whole life policy, A securities license is required for a life insurance producer to sell modified life insurance Modified Endowment Contracts (MEC) variable life insurance universal life insurance, The shorter the payment period, the higher the premium, The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is The shorter the payment period, the lower the premium The longer the payment period, the higher the premium The shorter the payment period, the higher the premium The payment period has no affect on the premium payment, Policyowner has the right to select the investment which will provide the greatest return, Variable life insurance and Universal life insurance are very similar. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? D) imposed authority, What makes an insurance policy a unilateral contract? Her son, Mike, is the beneficiary. C) negotiation between the involved parties A) Competent parties C) aleatory How do insurers predict the increase of individual risks? C) there must be legal reasons for entering into the contract What would happen if a life insurance applicant is given a conditional receipt? 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. A provision that allows a policyowner to withdraw a policys cash value interest free is a(n), The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT, All of these are valid options for an Adjustable Life Policy EXCEPT, The policys premium can be increased or decreased, An insurers claim settlement practices are regulated by the. express, ______ is NOT an element of a valid contract. C) Law of large numbers 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). Use the binomial distribution to find P(x13)P(x \leq 13)P(x13) if the stain removal product's claim is correct. The present cash value of the policy equals $250,000. Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. In this situation, who will receive Bob's policy proceeds? C.$2,113 C) Contract must have a legal purpose
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