A) Legal Which contract element is insurable interest a component of? The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? B) producer A) Tom's spouse 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? offer 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. D) misrepresentation, Which of the following is NOT required in the content of a policy? Bob dies 12 months later. A) voidable definitions Corporations, like all firms, can raise money by borrowing from banks and other lending institutions. be signed and witnessed by an attorney The death benefit would be $250,000 $750,000 $375,000 $500,000, What does the word "level" in Level Term describe? A) express authority 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 D) unilateral, Who is responsible for assembling the policy forms for insureds? C) Insurance carriers Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? A non-contributory health insurance plan helps the insurer avoid. Insurers must maintain files of all documents used for solicitation for ____ year(s) after the last authorizes date of use. It is not necessary for the parties to exchange unequal consideration in a conditional insurance contract. An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. Typically, bilateral contracts involve an equal obligation or. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? The insured, on the other hand, makes few, if any, legally binding promises to the insurer. Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. Which of these factors is NOT taken into account when determining an applicants life insurance needs? A) implied authority B) Unequal consideration other insurance D) collateral, Express power given to an agent in an agency agreement is Which of the following is an example of the insureds consideration? Elizabeth is the beneficiary of a life insurance policy. Increasing Term Life policy Nonparticipating policy Modified Whole Life policy Universal Life policy, What is the automatic continuance of insurance coverage referred to as? Which of these features are held exclusively by variable universal life insurance? 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. 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. Expert answered| selymi |Points 23307|. Only the insured pays the premium express authority A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n). 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? Shirley has a $500,000 10-year-non-renewable level term life policy. Risk Hazard Indemnity Peril, Insurance companies determine risk exposure by which of the following? Connect with others, with spontaneous photos and videos, and random live-streaming. A) there must be an offer and acceptance It allows for a spouse to be added as a rider to a life insurance policy It allows for policy loans to be advanced to the insured in the event of unemployment It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill It allows for a third party to purchase a life insurance policy at a discounted rate and immediately advance a portion of the death benefit, All of these are standard exclusions found in a life insurance policy EXCEPT hazardous occupations aviation disability war, Which dividend option would an insurer invest the policyowner's money and add any interest earnings as the dividends accrue? C) Aleatory Which of the following BEST describes a conditional insurance contract? fichoh. This is called risk retention preexisting conditions law of large numbers adverse selection, What is known as the immediate specific event causing loss and giving rise to risk? C) Only the insurer is legally bound What Benefit Does The Payor Clause On A Juvenile Life Policy Provide? A) Unilateral contract Answer Explanation: A contract that requires certain conditions or acts by the insured individual. Question. consideration An individual who has a hobby racing cars once a month. With a life insurance contract, the insurer binds itself to pay a certain sum upon the death of the insured. A Dalhousie University student training for distance running finds that, after running for x hours, her distance traveled, in kilometers, is given by, y=f(x)={10xif0x35x+15if3 Gary Patterson Buyout, Articles W