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Which of the following does a life insurance policy summary normally include? offer D) only one party makes any kind of enforceable promise, C) the terms must be accepted or rejected in full, What is implied authority defined as? A) Only the insured pays the premium B) conditional B) A contract that has the potential for the unequal exchange of consideration for both parties. D) Consideration, What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as? B) at the time of application (D) Only one party is legally bound to the contract. A contract that requires certain conditions or acts by the insured individual. 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. Which of the following best describes a symbol. Express express authority C) apparent authority What is a corridor in relation to a Universal Life insurance policy? D) Only the insured is legally bound, Bob and Tom start a business. 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? His insurance agent told him the policy would be paid up if he reached age 100. Parent and children 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? All of the following statements about Carl's coverage are correct. Both partners are still married at the time of Bob's death. Authority given in writing to an agent in 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 Authority given to handle claims and process payments Authority given to an agent to act outside the scope of the agency agreement, The authority granted to a licensed producer is provided via the producer's apparent authority written contract Law of Agency Principal Capacity, Insurable interest does NOT occur in which of the following relationships? D) misrepresentation, Which of the following is NOT required in the content of a policy? What is the name of the provision which states that a copy of the application must be attached to the policy when issued? producer's apparent authority unilateral, Ambiguities in an insurance policy are always resolved in favor of the Risk reduction Risk transference Risk avoidance Risk retention, The cause of a loss is referred to as a(n) hazard adversity peril risk, How do insurers predict the increase of individual risks? The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? The policies continue in force with no change. Only the insurance company has legal obligations. This is also known as a non-negotiable insurance contract, or an automatic contract. A) there is an element of chance and potential for unequal exchange of value or consideration for both parties 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. This is an example of: An example of unfair discrimination would be, When an insurer charges a higher rate for insurance based on an insureds race, religion, or national origin, Fixed period settlement options are considered to be a form of a(n). Which of the following is NOT considered rebating? The insured does not meet established underwriting requirements, The type of multiple protection coverage that pays on the death of the last person is called a(n). A) underwriting Post thoughts, events, experiences, and milestones, as you travel along the path that is uniquely yours. the policy provides a straight, level $100,000 of coverage for 5 years. b) a contract is an agreement enforceable at law. 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. C) A contract where one party adheres to the terms of the contract 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. Premium clause 2003-2023 Chegg Inc. All rights reserved. Bob dies 12 months later. ______ is NOT an element of a valid contract. 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 B) Parent and children Expert answered| selymi |Points 23307|. The death benefit paid will be what the premium would have purchased at the correct age, Converting a group plan to permanent life insurance requires, The conversion being applied for within 31 days of termination. Expert answered|Malekith22|Points 0| Log in for more information. 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? I hope you got the correct answer to your question. Which Of The Following Statements About Personal Selling Is Correct? 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". Which of the following BEST describes a conditional insurance contract? A bilateral contract is an agreement between two parties in which each side agrees to fulfill their side of the bargain. there must be legal reasons for entering into the contract What was his total bill? A) Parties involved in the contract B) Consideration 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? (B) Both parties adhere to the contract. D) errors and oversights, In an insurance contract, the insurer is the only party legally obligated to perform. 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. A) offer Premiums paid plus interest earned is returned to the beneficiary. 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. there must be an offer and acceptance Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? See answers. Typically, bilateral contracts involve an equal obligation or. Connect with others, with spontaneous photos and videos, and random live-streaming. Conditional insurance contracts are insurance policies that require the insured person to satisfy certain conditions in order to become effective and/or to be paid out by the insurer. The automatic premium loan provision authorized an insurer to withdraw from a policys cash value the amount of, Past due premiums that have not been paid by the end of the grace period. apparent authority How do insurers predict the increase of individual risks? 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. 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 Shirley has a $500,000 10-year-non-renewable level term life policy. Pay owns a 20-pay life policy with a paid-up dividend option. In most insurance policies, the insurer is the only one who makes a legally binding promise to pay insured claims. Which of these features are held exclusively by variable universal life insurance? Which of the following is a reinstatement condition? Insurer's promise to pay benefits In order to maintain coverage and make a successful claim, its crucial that policyholders read and understand their insurance contract carefully. Which of the following is CORRECT regarding the death benefit amount? only one party makes any kind of enforceable promise, the terms must be accepted or rejected in full, 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". All of these are typically sources of underwriting information for life or health insurance EXCEPT. 2 See answers claim forms there is the potential for an unequal exchange of value Have a great time ahead. Interest on policy loans is tax deductible Premium payments are tax deductible Pre-death distributions will become taxable Cash value cannot be surrendered early, seeks temporary protection and lower premiums, Term insurance is appropriate for someone who seeks living benefits for themselves seeks a policy that builds cash value seeks temporary protection and lower premiums seeks permanent protection and higher premiums, Shirley has a $500,000 10-year non-renewable level term life policy. $1,000 $3,000 $5,000 $7,000, A nonparticipating company is sometimes called a(n) alien insurer mutual insurer reinsurer stock insurer, Because dividends are considered to be a return of premium, Why are dividends from a mutual insurer not subject to taxation? Required fields are marked *. 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