Principal Capacity, All of the following are elements of an insurance policy EXCEPT If she dies 15 years after the policy's inception date, how much will her beneficiary receive? Which of these statements is true? All of the following are considered appropriate uses if life insurance for business purposes EXCEPT, Protecting the business by covering entry level employees with life insurance, Level premium permanent insurance accumulates a reserve that will eventually. What types of life insurance are normally used for key employee indemnification? Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? How many days is a temporary producers license valid? Food C. Plant D. Zucchini. 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? Insurance interest does NOT occur in which of the following relationships? imposed authority, In an insurance contract, the element that shows each party is giving something of value is called A) Unilateral contract C) apparent authority Which of the following best describes how you analyze a fiction text? 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 Expert answered| selymi |Points 23307|. Bob dies 12 months later. Adjustable life insurance Decreasing term insurance Increasing term insurance Modified life insurance, A spouse and child can be added to the primary insured's coverage as what kind of rider? Variable life insurance and Universal life insurance are very similar. (D) Only one party is legally bound to the contract. 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? If Mike dies first, the policy proceeds will no longer provide insurance protection will go to Mike's estate will be divided by probate will not be paid until the last brother dies, The gap between the total death benefit and the policy's cash value, What is a corridor in relation to a Universal Life insurance policy? In this situation, who will receive Bob's policy proceeds? The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. A) Insurability Accelerated death benefit An example of an unfair claims practice would be Which of the following are the premium payments for a universal life policy NOT used for? Dorian exercises a nonforfeiture option by using his life policys cash value to purchase an extended term insurance option. 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. A life insurance contract guarantees to the beneficiary not only a death benefit, but a payment of a sum of money in perpetuity, called a death benefit for that purpose of insurance coverage. fichoh. D) Intent, Which contract element is insurable interest a component of? weegy. Which of the following BEST describes a conditional insurance contract? How often must an insurance producers license in Utah be renewed? Which of the following BEST describes a conditional insurance contract? Bob and Tom start a business. purpose, Insurable interest does NOT occur in which of the following relationships? In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. A) Express Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident? How do marketers use insights regarding the self-concept? In this situation, who will receive Bob's policy proceeds? C) Apparent authority A) A contract that requires certain conditions or acts by the insured individual _______ is the authority given to a producer to transact business on behalf of the insurer. B) the insurer's obligations are dependent upon certain acts of the insured individual B) concealment Which of the following does a life insurance policy summary normally include? At what point may a producer sell insurance for an insurer? C) Probability of loss 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"? Pay owns a 20-pay life policy with a paid-up dividend option. (B) Both parties adhere to the contract. A(n) ________ investigates, negotiates, and settles claims for a few on behalf of an insurance company. 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) A contract that requires certain conditions or acts by the insured individual. collateral, What is implied authority defined as? Have a great time ahead. (A) Both parties to the contract are bound to the terms. Advertisement. 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? 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. Term, whole, and universal life insurance. 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? Sharing commissions with a producer licensed in the same line of business. B) at the time of application Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Completing all applications and collecting initial premiums. Which contract element is insurable interest a component of? Barbaras policy includes a rider which allows her to purchase additional insurance at specific dates or events without evidence of insurability. Producers act in a(n) ________ capacity when holding insurance premiums. b) a contract is an agreement enforceable at law. be filed with the state D) Terminate the agent, Insurable interest does NOT occur in which of the following relationships? This rider is called a(n). Write a summary of the main ideas. B) guarantee A unilateral contract is one in which only one party makes a legally binding guarantee. Which of the following statements correctly describes a contract of indemnity? A rating from a rating service company, such as A.M. Best An illustration A sales presentation Direct mailing from an agency, Fraternal Benefit Society has each of the following characteristics EXCEPT Incorporated Without capital stock Exist For profit Exist for the benefit of its members, A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-derived plan A multiple-employer plan A blanket plan A self-funded plan, An insurer's ability to make unpredictable payouts to policyowners is called investment values liquidity assets capital, Ken is a producer who has obtained Consumer Information Reports under false pretenses. 3. Administrative actions taken against a producer must be reported to the Commissioner within ____ days. The present cash value of the policy equals $250,000. 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) Insurer's promise to pay benefits B) Rescind the policy The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract.

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