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What type of contract is defined by the insurer's obligation to pay a claim based on compliance with policy conditions? Contract of good faith Conditional contract Agency agreement Aleatory agreement 2. Describe the significance of dividends in the context of mutual insurance companies and their policyholders. Dividends are paid to stockholders as a profit-sharing mechanism. Dividends are a form of tax refund for beneficiaries of insurance policies. Dividends are a return of surplus e...

1. If a foreign insurer wishes to operate in Wisconsin, what must it obtain to comply with state regulations? Agent Registration Premium Tax Exemption Insurance License Certificate of Authority 2. What is prohibited regarding the influence of agents or companies on employers in relation to policy receipt? Companies can incentivize employers to terminate employees for policy benefits. An agent or company cannot influence an employer to fire or not hire a person as a condition ...

For a plan to be a "qualified" retirement plan, it must meet all the following requirements except which of the following? The plan can discriminate in favor of the highly compensated employees. The plan must be created for the exclusive benefit of the employees or their beneficiaries. There is a minimum vesting requirement which must be met with respect to employee and employer contributions. The plan must meet certain participation and coverage requirements. 2. Describe the signific...

f a policyowner decides to exercise the Free-Look Provision after realizing the policy does not meet their needs, what financial impact does this have on their premium payments? They receive a full refund of the premium paid. They can only receive a refund if they switch to another policy. They must pay an additional fee to cancel the policy. They lose a portion of the premium as a penalty. 2. Describe how the Human Life Value approach influences the determination of life insurance coverage. ...

Who holds ownership in a mutual insurance company? Shareholders The insurance Commissioner Its policyholders The state government 2. Describe the significance of continuing education requirements for insurance agents in Georgia. Continuing education is only required for agents over 20 years of experience. Continuing education is optional for agents to improve their sales skills. Continuing education ensures that insurance agents stay updated on regulations and practices, enhancing their comp...

What is a MEWA? A trust consisting of multiple small employers in the same industry, formed for the purpose of purchasing group health insurance A technical term under federal law that encompasses essentially any arrangement not maintained pursuant to a collective bargaining agreement that provides health insurance benefits to the employees All of these are correct A Multi-Employer Welfare Arrangement 2. An example of an intentional injury is: drowning murder road rage a car crash 3. The Co...

Describe the primary features of a family maintenance policy in life insurance. A family maintenance policy is designed solely for funeral expenses. A family maintenance policy provides a monthly income to a beneficiary for a specified period and a lump sum at the end of that period. A family maintenance policy only pays a lump sum benefit upon the policyholder's death. A family maintenance policy allows policyholders to borrow against their cash value. 2. Because they are aleatory contr...

If an individual chooses a Limited-Pay Life policy and pays premiums until age 65, what happens to their coverage after that age? The coverage is terminated and no benefits are paid. The coverage continues without the need for further premium payments. The coverage is reduced significantly. The individual must start paying premiums again. 2. Which of the following takes place during an annuity's annuity period? the principal earns interest the contract may be funded with a series of premiu...

In what way is an insurance contract unilateral? Only one party (the insurer) makes a promise that is enforceable by law Neither party may be forced to comply with policy terms The insured has a choice of insurers Only one party (the Insured) makes a promise that is enforceable by law 2. In a scenario where a policyholder pays a premium for a life insurance policy but does not pass away during the policy term, how does this exemplify the concept of aleatory contracts? The contract becomes v...

1. Falsifying the terms, benefits, advantages, or conditions of an insurance policy is an example of which of the following? Forgery Concealment Misrepresentation Coercion 2. In order to do business in a state, an insurer must have a certificate of Approval Admittance Agency Authority 3. If an insurer attempts to operate in Washington D.C. without a certificate of authority, what legal consequences might they face? They will be required to pay a small fee to obtain...