Georgia Life Insurance Exam Ch. 2 questions & answers for quizzes and A) producer's apparent authority (C) Both parties exchange goods of equal value. C) Legal purpose After first premium is paid, the face amount may be available to the beneficiary, Level premium term life insurance policies, Have premiums that are averaged over the policy period, A policyowner can receive an immediate payment before the insured dies by using a(n), Matt is applying for life insurance and requests a double indemnity rider. Which of the following statements correctly describes a contract of indemnity? What guarantees that the statements supplied by an insurance applicant are true? be filed with the state 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 Which of these statements is true? Law of large numbers U.S. Census Average mortality incidents Experience of morbidity, Insurance represents the process of risk selection avoidance transference assumption, Doctors pooling their money to cover malpractice exposures, An example of risk sharing would be Adding more security to a high-risk building Choosing not to invest in the stock market Doctors pooling their money to cover malpractice exposures Buying an insurance policy to cover potential liabilities, All of the following are examples of pure risk EXCEPT Losing money at a casino Injured while playing football Falling at a casino and breaking a hip Jewelry stolen during a home robbery, the terms must be accepted or rejected in full, Under a contract of adhesion, there is the potential for an unequal exchange of value the insurer's obligations are dependent upon certain acts of the insured individual the terms must be accepted or rejected in full only one party makes any kind of enforceable promise, According to life insurance contract law, insurable interest exists when any business relationship exists at the time of application at the time of death only when determined by a judge, In an insurance contract, the insurer is the only party legally obligated to perform. conditional 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. Which of the following BEST describes a conditional insurance contract. underwriter, Life Insurance Policies - Provisions, Options, Fundamentals of Financial Management, Concise Edition, Micro Oneliners: Urinary Tract Infections (UT. Please check below to know the answer. 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? D) Conditional, Which of the following is NOT a requirement of a contract? Of the following dividend options, which of these is taxable? A) estoppel 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. B) other insurance Required fields are marked *. 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? Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, 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 prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The death benefit would be. C) the terms must be accepted or rejected in full Premiums paid plus interest earned is returned to the beneficiary. B) only one party (the insurer) makes any kind of legally enforceable promise Child term rider Payor rider Family maintenance rider Family income rider, What happens to the coverage under a children's term rider when that child reaches a certain specified age? B) Bob's estate Andy the annuitant dies before the annuity start date. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? Vegetable B. GENERAL LAW OF CONTRACTS A contract is an agreement enforceable by law. The above question Which of the following BEST describes a conditional insurance contract?, Was part of Insurance MCQs & Answers. The policies continue in force with no change. A) Contract may be accepted or rejected by the insured, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as. Authority given to handle claims and process payments Both partners are still married at the time of Bob's death. C) Authority given to handle claims and process payments y=f(x)=10x5x+1535if0x3if3
Which of the following best defines diction? A. simile B - Weegy 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. The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? Whole life policy that pays out its cash value over a 20 year period Whole life policy with premiums paid up after 20 years Term life policy that returns cash value after 20 years Term life policy with premiums paid up after 20 years, Which type of multiple protection policy pays on the death of the last person? Flashcards - Ch. 15 - Disability Income - FreezingBlue B) only an offer conditions, Legal purpose is a term used in contract law meaning Q. Offering payment of approved claims within 30 days after affirming liability. B) the insurer's obligations are dependent upon certain acts of the insured individual Which statement is CORRECT when describing a contract of adhesion? D) Tom, The deeds and actions of a producer indicate what kind of authority? Which option was chosen? Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of these features are held exclusively by variable universal life insurance? B. Accumulation at Interest Option Cash Dividend Option Paid-Up Additions Option One-Year Term Dividend Option, The policy may be paid up early by using policy dividends, Pat owns a 20-pay life policy with a paid-up dividend option. C) Law of Agency Rob purchased a standard whole life policy with a $500,000 death benefit when we was age 30. Which of the following best describes the MIB? A) A contract that requires certain conditions or acts by the insured individual Which of the following BEST describes a conditional insurance contract? implied authority Events are those which cannot be controlled by either . D) collateral, Express power given to an agent in an agency agreement is A. A) implied authority Term, whole, and universal life insurance. 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 Insurance Multiple-Choice Questions Flashcards Preview - Brainscape D) imposed authority, What makes an insurance policy a unilateral contract? Which of the following statements about aleatory contracts is NOT true? Rob recently died at age 60. A. Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? be signed and witnessed by an attorney C) representation C.$2,113 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. Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. An applicants character and personal habits can be obtained for underwriting purposes from which source? A minimum of 12 months after date of purchase, Insurance premium is determined by each of the following factors EXCEPT. Both partners are still married at the time of Bob's death. Food C. Plant D. Zucchini. How does life insurance create an immediate estate? B) Rescind the policy Countersignature, Which of the following is an example of the insured's consideration? B) A contract that has the potential for the unequal exchange of consideration for both parties Which Of The Following Statements About Personal Selling Is Correct? Plot this function and determine if she is ready to attempt the Bluenose Marathon. 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? A) Make whole Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". 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? The insurers obligation to pay a death benefit upon an approved death claim. What is the purpose for having an accelerated death benefit on a life insurance policy? 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 C) Insurance carriers B) acceptance 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? The terms and conditions of insurance contracts should be carefully reviewed by policyholders before signing. Which of the following does a producer NOT have a fiduciary responsibility to? D) both the policyowner and the insurer must know all material facts and relevant information, B) only one party (the insurer) makes any kind of legally enforceable promise, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) Which of the following policies does NOT build cash value? B) Period to which the coverage exists What is a corridor in relation to a Universal Life insurance policy? How could a company manager use a process cost summary to determine if the program to reduce water usage is successful? Which of the following best describe the term definition. The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? 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. Updated 10/6/2017 9:10:03 AM. D) conditions, The authority granted to a licensed producer is provided via the All of these are typically sources of underwriting information for life or health insurance EXCEPT. The two major actions required for a policyowner to comply with the Reinstatement Clause are, Provide evidence of insurability, pay past due premiums, The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as.
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