be signed and witnessed by an attorney A contract that requires certain conditions or acts by the insured individual A contract that has the potential for the unequal exchange of consideration for both parties A contract where one party "adheres" to the terms of the contract A contract where only one party makes any kind of enforceable contract, statements made in the application and the premium, In a life or health insurance contract, "consideration" would be the offer and acceptance premium only statements made in the application and the premium statements made in the application only, 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 underwriting issuance of the policy promises made legal reserve, All of the following are elements of an insurance policy EXCEPT definitions other insurance claim forms conditions, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as Apparent Estoppel Aleatory Unilateral, Which of the following is an example of the insured's consideration? D) Risk insured against, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract? A contract that requires certain conditions or acts by the insured individual This means that the insurer's promise to pay benefits depends on the occurrence of an event covered by the contract. An individual who has a hobby racing cars once a month. This rider is called a(n). Q. written contract Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? D) unilateral, Who is responsible for assembling the policy forms for insureds? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? 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? Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Authority given to handle claims and process payments Both partners are still married at the time of Bob's death. Term insurance is appropriate for someone who, Seeks temporary protection and lower premiums. What kind of policy is this? 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? Expert answered| selymi |Points 23307|. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? be in writing other insurance A) A contract that requires certain conditions or acts by the insured individual After being properly appointed by the insurer. 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 Expert answered|Malekith22|Points 0| Log in for more information. What was his total bill? 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) Apparent authority underwriting It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. 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. D) Principal Capacity, A unilateral contract is one in which Orissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed in Ken? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. purpose, Insurable interest does NOT occur in which of the following relationships? B) NAIC B. 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). 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? B) Period to which the coverage exists Which of the following best describes how you analyze a fiction text? Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy? D) Business owner and business client, Under a contract of adhesion, Competent parties Offer and acceptance Consideration Legal purpose, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. 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. Declarations Entire contract Waivers Conditions, A whole life policy option where extended term insurance is selected is called a(n) dividend option settlement option nonforfeiture option interest-only option, Which of these would limit a company's liability to provide insurance coverage? The policies continue in force with no change. 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? Which of these legislation Acts is designed to protect consumers with guidelines regarding credit reporting and distribution? 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? 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. Both partners are still married at the time of Bob's death. Business partners 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 A marathon is 42.2 kilometers. Who is responsible for assembling the policy forms for insureds? 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. D) collateral, Express power given to an agent in an agency agreement is D) Conditional, Which of the following is NOT a requirement of a contract? The face amount and premium will remain constant over the 10-year period. An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in. y=f(x)=10x5x+1535if0x3if3