Set B 5 (61-75)

Situations where the risk is increased by slippery floors, a habit of lying, or reckless drunk driving are best described by which of the following?

A hazard

In insurance, the agents have authorization to represent the company. The producers may exercise this relationship through:

Express authority, implied authority and apparent authority.

Ashley, the policy owner and insured, named Wendell as primary beneficiary and Barbara as contingent beneficiary. Just six (6) weeks prior to Ashley's death, Wendell and Barbara are killed in a common disaster. The insurance proceeds will be received by whom?

Ashley's estate

In life insurance, beneficiary succession is the method used to determine who will receive death proceeds. If the primary beneficiary is not living upon the death of the insured who will receive the payment?

Contingent beneficiary

Profit Sharing Plans:

Allow for a contribution of a specified proportion of company profits.

An insurer invests the cash value of a fixed annuity in which of the following assets?

General account

A policy owner who cannot borrow the equity, change beneficiaries, assign a policy or stop paying premiums without the beneficiary's written consent has designated the beneficiary as a(n):

Irrevocable beneficiary.

Term insurance is best described by which of the following?

Provides temporary protection, builds no cash value, is less expensive, and may be renewed.

Which of the following statements is false in regard to a Life Paid-up at-65 whole life policy?

The policy will endow at age 65.

Which of the following becomes part of the contract, is guaranteed to be true, and if untrue, may be grounds for rescinding the policy?

Warranty

When an applicant makes a material statement believed to be true to the best of their knowledge, the statement is considered to be a/an

Representation.

Which statement best describes "agreement" as it relates to contracts?

One party accepts the exact terms of the other party's offer.

Which party has the legal authority to name or change the beneficiary?

Policyowner

All of the following are true about key person insurance, except:

The death benefit is taxable to the business.

Which of the following are characteristics of renewable term?

Allows the policyowner the opportunity to renew the policy at the end of term, without evidence of insurability. The premium will increase.