Dividends payable to a policyowner are: Declared by the insurance company Guaranteed annually Taxable income Fixed amounts

Declared by the insurance company

At what point must a life insurance applicant be informed of their rights under the Fair Credit Reporting Act? At the first premium payment During the underwriting process At policy issuance Upon completion of the application

Upon completion of the application

At what point does an informal agreement become a binding contract? When a witness is present When the contract is notarized When both parties sign the agreement When consideration is provided by one of the parties

When consideration is provided by one of the parties

Comprehensive Insurance and Policy Concepts: A Detailed Exploration

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Business - Insurance

georgepetenjk Created by 10 mon ago

Cards in this deck(100)

Who elects the governing body of a mutual insurance company?

A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as:

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Dividends payable to a policyowner are:

At what point must a life insurance applicant be informed of their rights under the Fair Credit Reporting Act?

E and F are business partners with life insurance policies on each other. After terminating their business, E dies. Where will the proceeds from E's life insurance policy be directed if the primary beneficiary is still F?

At what point does an informal agreement become a binding contract?

A life insurance policy would be considered a wagering contract without:

Insurance policies are offered on a 'take it or leave it' basis, which makes them:

A policy of adhesion can only be modified by whom?

Which of the following consists of an offer and consideration?

Which of these is considered a statement that is assured to be true in every respect?

Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called:

Taking receipt of premiums and holding them for the insurance company is an example of:

A contract where one party either accepts or rejects the terms of a contract written by another party is called a contract of:

Which of the following best describes a warranty?

A life insurance arrangement which circumvents insurable interest statutes is called:

The part of a life insurance policy guaranteed to be true is called a(n):

Life and Health insurance policies are:

Which of these is not a type of agent authority?

Who makes the legally enforceable promises in a unilateral insurance policy?

When must insurable interest be present in order for a life insurance policy to be valid?

Which of these arrangements allows one to bypass insurable interest laws?

What is the consideration given by an insurer in the consideration clause of a life policy?

In regards to representations or warranties, which of these statements is true?

The Consideration clause of an insurance contract includes:

Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements?

When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have:

If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

Insurance policies are considered aleatory contracts because:

Which of these is not considered to be an element of an insurance contract?

Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features?

A variable insurance policy:

A(n) _____ life policy combines investment choices with a form of term coverage.

Variable Whole Life Insurance can be described as:

G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

Q is looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time period. Which of these policies should Q purchase?

A Term life insurance policy matures:

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, except for:

Which of the following Life insurance policies combine term insurance with an investment element?

A(n) _____ Term life policy is normally used when covering an insured mortgage balance.

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

The combination of whole life and _____ term insurance is referred to as a family income policy.

Credit life insurance is typically issued with which of the following types of coverage?

F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?

Which of these types of life insurance allows a policy owner to have level premiums and to also choose from a selection of investment options?

Which of the following types of permanent life insurance policies offer the highest initial cash value?

Which of the following features of a group term life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

A(n) _____ life policy offers the owner investment in products such as money market funds, long-term bonds, and equity.

Which of these characteristics is consistent with a straight life policy?

Which of the following actions is not possible with a universal life policy?

Which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan?

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. What action will the insurer take?

Which provision prevents an insurer from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself?

A whole life insurance policy owner does not have the right to:

Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled?

A cost of living rider gives the insured:

S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made?

A potential client, age 40, would like to purchase a whole life policy that will accumulate cash at a faster rate in the earlier years of the policy. Which of these statements made by the producer would be correct?

Best buys a $50,000 whole life policy with a $50,000 accidental death and dismemberment rider. S dies one year later of natural causes. How much would the insurer pay the beneficiary?

Which of these is NOT considered to be a right given to a policyowner?

Whose life is covered on a life insurance policy that contains a payor benefit clause?

The purpose of the _____ clause is to avoid an unintentional lapse of a life insurance policy.

The _____ is authorized to assign a life insurance policy as collateral for a loan.

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 whole life policy contains a war exclusion clause. How much will the beneficiary receive?

How are policyowner dividends treated in regards to income tax?

Ay pays on a $20,000 20-year endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions?

The accidental death and dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured:

A(n) _____ rider may be used to include coverage for children under their parent's life insurance policy.

What action will an insurer take if an interest payment on a policy loan is not made on time?

Dividends paid from a life insurance policy are:

How are surrender charges deducted in a life policy with a rear-end loaded provision?

What does the ownership clause in a life insurance policy state?

The incontestable clause allows an insurer to:

D owns a whole life policy that was purchased 10 years ago. If the premium payment suddenly stops and no additional action is taken, which non-forfeiture option will the insurer likely proceed with?

A life insurance policy owner would like to take out a loan against the cash value in his whole life policy. The interest rate applied to this loan may vary over time. This is referred to as a:

Which of these are not an example of a non-forfeiture option?

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called a(n):

What benefits does the payor clause provide in a juvenile life policy?

How do life insurance companies handle cases where the insured commits suicide within the contract's stated period?

Which of these policies may not have the automatic premium loan provision attached to it?

T took out a $50,000 life insurance policy with an accidental death and dismemberment rider. Five years later, T commits suicide. How much would the insurance pay?

A term life rider offers the insured:

All of these settlement options involve the systematic liquidation of death proceeds in the event of the insured's death, except:

In any life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be a recipient of any financial benefits from the policy?

Which type of life policy contains a monthly mortality charge as well as self-directed investment options?

Additional coverage can be added to a whole life policy by adding a(n):

A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following?

The _____ has the right to change a life insurance policy's beneficiary.

In a life insurance policy, which feature states that the policy will not cover certain risks?

K has a life insurance policy where her husband is the beneficiary and her daughter is the contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

A policyowner is allowed to pay premiums more than once a year under which provision?

Which of these is NOT an element of life insurance premiums?

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

A(n) _____ beneficiary may be changed by the policyowner WITHOUT the consent of the beneficiary.

A level premium indicates:

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to:

A policyowner would like to change the beneficiary on a life insurance policy and make the change permanent. Which type of designation would fulfill this need?

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