What makes an insurance policy a unilateral contract? Only the insurer is legally bound The insured must pay premiums The policy can be canceled by either party Both parties must perform

Only the insurer is legally bound

In contract law, what does the term 'legal purpose' mean? The contract must be in writing There must be legal reasons for entering into the contract The contract must be signed by both parties The contract must be notarized

There must be legal reasons for entering into the contract

Insurance Principles: Risk Management, Contract Elements and Insurer Types

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Business - Insurance

andrsonztdc Created by 10 mon ago

Cards in this deck(100)

What is the term for an insurer's ability to make unpredictable payouts to policyowners?

What is a type of insurer that is owned by its policyowners called?

Which of these are considered to be events or conditions that increase the chances of an insured's loss?

An example of risk sharing would be doctors pooling their money to cover what type of exposures?

How do insurers predict the increase of individual risks?

What makes an insurance policy a unilateral contract?

In contract law, what does the term 'legal purpose' mean?

What are an applicant's statements concerning occupation, hobbies, and personal health history regarded as?

The term which describes the fact that both parties of a contract may NOT receive the same value is referred to as?

In a business partnership where life insurance policies are taken out on each other, who will receive the policy proceeds if one partner dies after the business is dissolved?

What is implied authority defined as in the context of an insurance agent's duties?

The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?

What describes the change when Tim wants to convert his group coverage to an individual policy due to employment termination?

Under a group life policy, the insurer will issue an individual _____ to the policyowner for delivery to each person insured.

A non-contributory health insurance plan helps the insurer avoid what?

What does the Group Life underwriting risk selection process help protect insurance companies from?

How are contributions made to a Roth IRA handled for tax purposes?

Who were Keogh plans designed to provide pension benefits for?

All of the following are exempt from the 10% tax penalty for early qualified plan withdrawals EXCEPT?

Within how many days must a rollover be completed in order to avoid being taxed as current income?

Which of the following is NOT a federal requirement of a qualified plan?

Which of the following would disqualify a company's retirement plan from receiving favorable tax treatment?

Which of these factors is NOT taken into account when determining an applicant's life insurance needs?

What type of life insurance could Julie purchase to pay off her $100,000 30-year mortgage if she dies within the 30-year period?

What is issued to each employee of an employer health plan?

All of these are valid options for an Adjustable Life Policy EXCEPT?

A life insurance policy written on one contract for two people, payable upon the first death, is called?

How are disability income benefits from a group policy paid for by an employer treated for tax purposes?

Under a disability income policy, which provision would be payable if the cause of an injury is unexpected and accidental?

A Modified Endowment Contract (MEC) is best described as?

Without a Section 125 Plan in place, what would happen to an employee's payroll contribution to an HSA?

A renewable Term Life insurance policy allows the policyowner the right to renew the policy without producing what?

What is the automatic continuance of insurance coverage referred to as?

A securities license is required for a life insurance producer to sell which type of insurance?

Variable life insurance and Universal life insurance are very similar. Which feature is exclusive to variable universal life insurance?

How is Medicare Part B funded?

The open enrollment period for Medicare Part B is from when to when?

Rob purchased a standard whole life policy with a $500,000 death benefit. If he dies at age 60, what would the death benefit be?

A Renewable Term Life insurance policy can be renewed at a predetermined date or age, regardless of what?

All of these statements concerning whole life insurance are false EXCEPT?

Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities. What kind of policy is this?

When a decreasing term policy is purchased, it contains a decreasing death benefit and what kind of premiums?

A business will typically use which type of life insurance to cover their employees?

A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate higher than the guaranteed rate is called?

How does the integration of health factors work in relation to insurance?

Which type of long-term care benefit would be most appropriate for a stroke victim who requires speech therapy administered at her home?

Continuous 24-hour care provided by licensed medical professionals under the direct supervision of a physician is called?

Which type of plan would be most appropriate for an individual on Medicare and concerned that Medicare will NOT pay for charges exceeding the approved amount?

Premium mode is a term used to describe the what?

Proceeds from a life insurance policy are protected from the beneficiary's creditors by which clause?

Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident?

What is created after policy proceeds are obtained in a lump sum and then immediately invested?

The premium payment mode that results in the highest overall cost would be?

The premium payment mode that results in the least overall cost would be?

Mortality is calculated by using a large risk pool of what?

What is the primary feature of a viatical settlement?

Level premium term life insurance policies have premiums that are what?

Purchasing a life insurance policy in order to avoid the forced sale of assets upon death is called?

If Sharon must obtain Mike's signature to change the beneficiary, what kind of beneficiary designation is this?

Which market index is normally associated with an indexed annuity's rate of return?

What happens to interest earned if the annuitant dies before the payout start date?

The taxable portion of each annuity payment is calculated using which method?

Which of these statements regarding the annuitant is CORRECT?

During the accumulation period, who can surrender an annuity?

Which of these is NOT considered to be a risk factor in life insurance underwriting?

Which type of annuity stops all payments upon the death of the annuitant?

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has what?

Which of these annuities require premium payments that vary from year to year?

Which scenario would most life insurance policies exclude coverage for?

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's what?

Which of these is NOT considered to be a purpose of an annuity?

Which of the following annuity payout options makes no additional payments regardless of when the annuitant dies?

What is the purpose of the Medical Information Bureau (MIB)?

How soon can the benefit payments begin with a deferred annuity?

Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in?

An annuity is primarily used to provide what?

A field underwriter's main task is to ensure what?

When does a life insurance policy typically become effective?

Which of the following does a life insurance policy summary normally include?

An applicant intentionally lying to an insurance company on an application to obtain a cheaper premium is an example of what?

In which of the following relationships would there NOT be an insurable interest?

A disability policyowner is injured and becomes totally disabled. The benefits pay for 2 years, starting from the date of the injury. What is this time period called?

What percentage of a participant's income are group long-term disability benefit amounts typically limited to?

Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

Which of these is NOT considered to be a common life insurance nonforfeiture option?

All of the following are considered to be nonforfeiture options available to a policyowner EXCEPT?

Which of these would limit a company's liability to provide insurance coverage?

Who is the individual paid on a fee-for-service basis?

Which type of coverage pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?

The free-look provision gives the policyowner what right?

Which of these is NOT a characteristic of the Accelerated Death Benefit option?

Ownership of a life insurance policy may be temporarily transferred with a(n) what?

Ted has a health insurance plan that requires him to pay a specific sum out of pocket before any benefits are paid in a calendar year. Which of these does his health plan have?

An insured individual and the policy's beneficiary die from the same accident. The common disaster provision states the insurer will continue as if what?

Low frequency diseases can be exclusively covered by what kind of health insurance policies?

A health insurance policy will typically cover what type of services?

The type of policy where the insurer can send a notice to the insured that the policy has been cancelled in the middle of the term is called?

According to the Affordable Care Act, a grandfathered group health plan MUST cover what?

States that have 'no loss no gain' laws require a replacing policy to do what?

What is required before an insurance producer can act as a representative of an insurer?

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