A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Expert answered|Malekith22|Points 0| Log in for more information. A. Policy Application Riders Certificate of Authority, A life insurance rider that allows an individual to purchase insurance as they grow older, regardless of insurability, is called a(n) guaranteed term rider guaranteed insurability rider accelerated benefit rider cost of living rider, The suicide clause of a life insurance policy states that if an insured commits suicide within a stated period from the policy's inception, the insurer will only be liable for a return of premiums paid minus indebtedness and with interest during the last 12 months minus indebtedness and without interest during the last 6 months, A life insurance policyowner does NOT have the right to change a beneficiary select a beneficiary take out a policy loan revoke an absolute assignment, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT fare-paying passenger pilot of personal airplane suicide war, The insurer's obligation to pay a death benefit upon an approved death claim, Under a life insurance policy, what does the insuring clause state? A paid premium In which form of corporate financing is the investor also an owner? Competent parties Which of the following is an example of the insureds consideration? B) concealment B) written contract Options 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 fichoh. there must be an offer and acceptance Which of the following does a life insurance policy summary normally include? This legal agreement requires prior performance of another agreement or clause in order to be enforceable. Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? An applicants character and personal habits can be obtained for underwriting purposes from which source? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called 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"? Because you're already amazing. issuance of the policy The coverage, conditions, and limitations in the master policy of a group contract can be found in which document? A.$1,656 C) Insurable interest All of the following are examples of pure risk EXCEPT. This rider is called a(n). C) Legal purpose The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Adhesion clause Eventually, they retire and dissolve the business. 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. Reduction of premium One year term Paid-up additions Accumulation at interest, All of these are valid policy dividend options for a life insurance policyowner EXCEPT cash outlay to the policyowner accumulate without interest reduction in policy premium buy additional insurance coverage, Kurt is an active duty serviceman who was recently killed in an accident while home on leave. When handling premiums for an insured, an agent is acting in which capacity? If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Julie has a $100,000 30-year mortgage on her new home. 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? B. Principal Capacity, All of the following are elements of an insurance policy EXCEPT Which of the following is CORRECT regarding the death benefit amount? 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 A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). B) Equal consideration is required between the involved parties B) producer Bob dies 12 months later. For a trip to the hospital, Evan Appleton paid $1,656 in hospital charges, a$750 insurance deductible, and a $457 co-payment. (A) Both parties to the contract are bound to the terms. implied authority Proof of insurabiilty Changes in the insuring clause Premium increase Premium decrease, What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) State Insurance Departments C) insurer D) only when determined by a judge, Xcel Chapter 3 Legal Concepts of the Insuranc, Chapter 3 Exam - Legal Concepts of the Insura, Chapter 4 Exam - Life Insurance - Types of Po, 4 - (Questions) Life Insurance Policies - Pro, Chapter 5: Life Insurance Premiums, Proceeds,, Chapter 4: Type of Insurance Policies Part 1, Chapter 4: Policy Provisions, Options and Rid, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, The Cultural Landscape: An Introduction to Human Geography, AP Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Unit 7 AP Env. Eventually, they retire and dissolve the business. Sharing commissions with a producer licensed in the same line of business. 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. B) Indemnity the policy provides a straight, level $100,000 of coverage for 5 years. 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 Of the following dividend options, which of these is taxable? The policy may be paid up early by using accumulated cash values The policy may be paid up early by using policy dividends The policy's premiums will increase after 20 years The policy's cash values steadily decrease after 20 years, the policy would be payable, minus the premium amount, If an insured dies during the grace period with no premiums paid the policy would be payable, minus the premium amount the policy would be payable only after the beneficiary makes past due premium payment all past premiums will be refunded with interest the claim would be denied, In what part of an insurance policy are policy benefits found? The terms of the policy typically outline these conditions, which may include paying premiums on time and maintaining the insured property in good condition. implied Which option was chosen? A) Sue the insured Sorry, you have Javascript Disabled! if the insured lives beyond the 5 years, no benefits are payable. Modified Endowment Contract Current assumptive whole life Credit life insurance Equity index whole life, What kind of life insurance policy covers two or more people with the death benefit payable upon the last person's death? A new stain removal product claims to completely remove the stains on 909090 percent of all stained garments. Sharon is the policyowner of a $500,000 life insurance policy. A) Unilateral contract What is the name of the provision which states that a copy of the application must be attached to the policy when issued? What would happen if a life insurance applicant is given a conditional receipt? Authority given to handle claims and process payments A) Competent parties Insurer's promise to pay benefits The gap between the total death benefit and the policys cash value. Which contract element is insurable interest a component of? Only the insured pays the premium A contract that requires certain conditions or acts by the insured individual. Log in for more information. C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer they are "take it or leave it" contracts. Which of these statements is true? offer B) issuance of the policy aleatory What is a corridor in relation to a Universal Life insurance policy? Which of the following is a requirement to attain an Utah resident producer license? Eventually, they retire and dissolve the business. 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 Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Which of these would NOT be an unfair claims practice? 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 Apparent Which of the following is NOT considered rebating? 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. Determine which insurer offers the best rates Determine which insurer offers the best policies Determine financial strength of an insurance company Determine which agent to use locally, A nonparticipating policy will provide a return of premium provide tax advantages not pay dividends give policyowners special privileges, A rating from a rating service company, such as A.M. Best, Which of the following is NOT considered advertising? C) Charge more premium c. income earned by Pat's spouse. be in writing A) offer and acceptance Describe the structure. 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. C) Insurance carriers 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 What is the purpose for having an accelerated death benefit on a life insurance policy? Q. the contract must be a contract of adhesion, there must be legal reasons for entering into the contract, What makes an insurance policy a unilateral contract? Producers act in a(n) ________ capacity when holding insurance premiums. Under the McCarran-Ferguson Act, what is the minimum penalty for this? Utah requires that an insurance producer must complete ___ hour(s) of continuing education on the subject of law and ethics every reporting period. Science Study Guide Questions. Only the insurance company has legal obligations. Aleatory Contract: A contract type in which the parties involved do not have to perform a particular action until a specific event occurs. Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? there is the potential for an unequal exchange of value Offering payment of approved claims within 30 days after affirming liability. C) Implied I hope you got the correct answer to your question. a. medical expenses covered under Pat's employer-sponsored group health insurance. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? Which of the following statements is true? C) aleatory The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). D) A contract where only one party makes any kind of enforceable contract, A) A contract that requires certain conditions or acts by the insured individual, All of the following are elements of an insurance policy EXCEPT D) Conditional, Which of the following is NOT a requirement of a contract? Dual Life insurance Joint Life insurance Last Survivor Life insurance Shared Life insurance, Index whole life insurance contains a securities component that acts as a(n) hedge against inflation premium stabilizer means to lowering taxes on earnings incentive to purchase more coverage, Which of the following are the premium payments for a Universal life policy NOT used for? 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? The policies continue in force with no change. C.$2,113 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 Insurable interest Insurance exchanges Law of large numbers and risk pooling Population table data, People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. D) Utmost good faith, What does the insurance term "indemnity" refer to? B) at the time of application Which of the following BEST describes a conditional insurance contract? Which of the following is a reinstatement condition? Which of the following is an annuity that is linked to a market-related index? 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) implied authority What types of life insurance are normally used for key employee indemnification? When the term insurance expires. 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, D) A contract where only one party makes any kind of enforceable contract. D) Intent, Which contract element is insurable interest a component of? In this situation, who will receive Bob's policy proceeds? Asked 10/6/2017 7:04:21 AM. Have a great time ahead. B) the unwritten authority that the agent is assumed to have 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.