Which of the following best describe the term definition. Insurance producer Jerry offers a $350 shopping card if they purchase an insurance product through him. Business partners 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. A contract that requires certain conditions or acts by the insured individual. acceptance (B) Both parties adhere to the contract. A) estoppel Bilateral Contract: Definition, How It Works, and Example - Investopedia 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? Write a summary of the main ideas. 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. How often must an insurance producers license in Utah be renewed? The agent's obligation to provide the proper amount of coverage The insurer's obligation to return all premiums upon an approved death claim The insurer's obligation to pay a death benefit upon an approved death claim The agent's obligation to pay a death benefit upon an approved death claim, Of the following dividend options, which of these is taxable? A conditional contract, also called a hypothetical contract, is a contract agreement that only requires performance once the delineated conditions are met. Eventually, they retire and dissolve the business. Waiver of premium Juvenile waiver Guaranteed insurability Payor benefit, Which of the following is a reinstatement condition? Asked 10/6/2017 7:04:21 AM. When does a life insurance policy typically become effective? Under the McCarran-Ferguson Act, what is the minimum penalty for this? C) A contract where one party "adheres" to the terms of the contract insured 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. 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. 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. Bob dies 12 months later. A) offer and acceptance Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested? B) A paid premium B) the unwritten authority that the agent is assumed to have C) insurer contain an offer and acceptance, In an insurance contract, the insurer is the only party legally obligated to perform. Which of the following BEST describes a conditional insurance contract? Both partners are still married at the time of Bob's death. Life & Health 1 (Chapters 1, 2, 3, & 4) Flashcards Preview - Brainscape 2003-2023 Chegg Inc. All rights reserved. imposed authority, In an insurance contract, the element that shows each party is giving something of value is called D) misrepresentation, Which of the following is NOT required in the content of a policy? C) promises made 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? B) other insurance Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 1 pt. Insurer's promise to pay benefits 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. Group policy Adjustable life policy Whole life policy Endowment policy, A renewable Term Life insurance policy allows the policyowner the right to renew the policy at anytime the policyowner chooses as many times as the policyowner chooses paying the same premium as before the renewal without producing proof of insurability, When a decreasing term policy is purchased, it contains a decreasing death benefit and increasing premiums level premiums decreasing premiums variable premiums, Julie has a $100,000 30-year mortgage on her new home. Guaranteed Insurability rider Family term insurance rider Family whole insurance rider Payor benefit rider, A partial surrender is allowed in which of the following life policies? A) Authority given in writing to an agent in the agency agreement Both partners are still married at the time of Bob's death. Chapter 3 Legal Concepts of the Insurance Contract - Quizlet apparent authority Premium clause Consideration clause Adhesion clause Contestability clause, When the principal gives the agent authority in writing, it's referred to as express authority implied authority apparent authority imposed authority, Ambiguities in an insurance policy are always resolved in favor of the insured producer insurer underwriter, ______ is NOT an element of a valid contract. C) Contract must have a legal purpose A. C) Law of large numbers A) Make whole What kind of policy is this? Which type of multiple protection policy pays on the death of the last person? Which of these features are held exclusively by variable universal life insurance? 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? An example of an unfair claims practice would be, Failing to effectuate prompt, fair, and fair equitable settlements of a claim. Which Of The Following Best Describes A Conditional Insurance Contract. I hope you got the correct answer to your question. B) Indemnity Shirley has a $500,000 10-year-non-renewable level term life policy. A) Parties involved must be competent C) Materiality of concealment 3. A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. 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? Only the insured pays the premium 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? 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? Which of the following BEST describes a conditional insurance contract B) Only the insured can change the provisions B) implied authority conditional The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. B) Parent and children B) Bob's estate Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Answer Explanation: A contract that requires certain conditions or acts by the insured individual. a) a conditional acceptance allows the parties to negotiate the definite terms of the contract upon the completion of the contract. A) One party is restored to the same financial position the party was in before the loss occurred. D) Competent parties, Which of the following BEST describes a conditional insurance contract? C) adhesion D) Legal Purpose, Which of the following is present when an applicant stands to lose value if the insured dies? C) the contract has been prepared by one party (the insurance company) with no negotiation between the applicant and the insurer C) Insurable interest ______ is NOT an element of a valid contract. In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. D) collateral, Express power given to an agent in an agency agreement is Typically, bilateral contracts involve an equal obligation or. y=f(x)=10x5x+1535if0x3if3Which of the following best describe the term definition Policy Summary Buyer's Guide Entire Contract Entire Policy, It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill, What is the purpose for having an accelerated death benefit on a life insurance policy? Premiums paid plus interest earned is returned to the beneficiary. Business owner and business client, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? A unilateral contract is one in which only one party makes a legally binding guarantee. After being properly appointed by the insurer. 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 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. 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?