there is the potential for an unequal exchange of value The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. 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. What is the name of the provision which states that a copy of the application must be attached to the policy when issued? A) A contract that requires certain conditions or acts by the insured individual 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. 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? 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 D) Authority given to an agent to act outside the scope of the agency agreement, B) 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, Legal purpose is a term used in contract law meaning During periods of inflation, annuitants will experience a decrease in purchasing power of their payments. The authority granted to a licensed producer is provided via the unilateral, Ambiguities in an insurance policy are always resolved in favor of the C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer What does the word level in Level Term describe? Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Asked 10/6/2017 7:04:21 AM. B) only one party (the insurer) makes any kind of legally enforceable promise What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? claim forms This legal agreement requires prior performance of another agreement or clause in order to be enforceable. 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 B) the contract must be aleatory Loan against the cash value Policy withdrawal Policy dividend Death benefit, A business will typically use which type of life insurance to cover their employees? A) Sue the insured A) Competent parties 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. Authority given to handle claims and process payments B) issuance of the policy C) Law of large numbers Only the insurance company has legal obligations. The gap between the total death benefit and the policys cash value. Which of the following would be considered an underwriting duty of an agent? Bob dies 12 months later. The face amount and premium will remain constant over the 10-year period. 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) Period to which the coverage exists D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? C) negotiation between the involved parties B) conditional Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. A contract that requires certain conditions or acts by the insured individual Which of these is considered to be a Living Benefit option in a life insurance policy? 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? B) Offer and acceptance In this situation, who will receive Bob's policy proceeds? If the annuitant dies before the annuity start date, The premiums paid plus interest earned will be given to the beneficiary, Anyone who makes a fraudulent statement on an insurance application in order to obtain benefits from an insurance company. Key elements of Organizational Behavior - People, Structure ,Technology & External Environment | Organizational Behavior, Penology - Meaning, Types, Importance, Scope and Example | Sociology, Karmachari Sanchaya Kosh - | Employees Provident Fund Nepal, Perceptual Errors -Types of Perceptual Error | Fundamentals of Organizational Behaviour, Difference between Manufacturing and Service Operations | Operation Management. Within how many days must a licensee notify the Commissioner of a change in address? Which of the following would be a valid reason why a policy premium would be higher than the standard premium? Which of the following statements is TRUE? A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification? It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. C) Bob's spouse y=f(x)=10x5x+1535if0x3if3 Embark Truck Interview, Articles W