which of the following best describes a conditional insurance contract

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? A) Sister and brother Eventually, they retire and dissolve the business. Dependent term Guaranteed insurability Primary term Family term, Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? Accelerated death benefit An example of an unfair claims practice would be Write a summary of the main ideas. Which of the following products would allow him to accomplish this? His insurance agent told him the policy would be paid up if he reached age 100. Andy the annuitant dies before the annuity start date. Both partners are still married at the time of Bob's death. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? 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? The policies continue in force with no change. If xxx actually turns out to be 131313, what do you think of the claim? renewal reinstatement resumption renovation, the MEC tends to be an investment vehicle, Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because the MEC has tax deductible premiums the MEC is considered an illegal product the MEC tends to be an investment vehicle the MEC does not accumulate cash value, The face amount and premium will remain constant over the 10-year period, Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. 1 pt. A) Insurer's promise to pay benefits C) Insurable interest Which type of multiple protection policy pays on the death of the last person? A) Only the insured pays the premium Q. 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 D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? C) apparent authority Which of the following BEST describes a conditional insurance contract? I hope you got the correct answer to your question. Loans obtained by a policyowner against the cash value of a life insurance policy. the contract must be aleatory B) only one party (the insurer) makes any kind of legally enforceable promise Before using an assumed name in Utah, a producer MUST, Maria would like an annuity that provides a guaranteed accumulation or payout. Under the McCarran-Ferguson Act, what is the minimum penalty for this? $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? D) Business owner and business client, Under a contract of adhesion, Science Study Guide Questions. 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? One-sided or unfair insurance contracts can, however, exist if they contain provisions that disproportionately benefit one party. conditional 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. 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. (C) Both parties exchange goods of equal value. 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. What does the word level in Level Term describe? Because of this, an insurance contract is considered B) Implied authority Which type of life insurance policy is this? D) underwriter, Reasonably necessary acts that an agent must perform for carrying out his/her expressly authorized duties are covered by an agent's It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill. James is the insured on a life insurance policy where his age was misstated on the application. Which of the following is NOT considered rebating? __________. WINDOWPANE is the live-streaming app for sharing your life as it happens, without filters, editing, or anything fake. B) A contract that has the potential for the unequal exchange of consideration for both parties Expert answered| selymi |Points 23307|. After being properly appointed by the insurer. Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. 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? Multiple-choice. Connect with others, with spontaneous photos and videos, and random live-streaming. 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? B) the unwritten authority that the agent is assumed to have Restoring an insured to the same condition as before a loss is an example of the principle of. The policies continue in force with no change. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. 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. Active Status Results Leave, A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n) automatic premium loan nonforfeiture option collateral assignment irrevocable assignment, Period of time after the premium is due but the policy remains in force, What is an insurance policy's grace period? How many days is a temporary producers license valid? Both partners are still married at the time of Bob's death. Advertisement. C) there must be legal reasons for entering into the contract His insurance agent told him the policy would be paid up if he reached age 100. A) Express 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? 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. the policy provides a straight, level $100,000 of coverage for 5 years. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. 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. Only the insurance company has legal obligations. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? Intent, The deeds and actions of a producer indicate what kind of authority? She would like to borrow $15,000 against the cash value. How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? B) at the time of application Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Which market index is normally associated with an indexed annuitys rate of return? A unilateral contract is one in which only one party makes a legally binding guarantee. This legal agreement requires prior performance of another agreement or clause in order to be enforceable. A) voidable All of the following statements about Carl's coverage are correct. Law of Agency 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. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. Which option was chosen? D. $2,863. This rider is called a(n). 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. C) A contract where one party adheres to the terms of the contract The amount of his disability income payments for an on-the-job injury may be reduced by. 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. A) fiduciary bond A) offer and acceptance 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

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