What is the purpose of a conditional receipt? It is
intended to provide coverage on a data earlier than the date of the issuance of the policy
. An agent and an applicant for life insurance policy fill out and sign the application.
The conditional receipt provides that
when the applicant pays the initial premium, coverage is effective on the condition that the applicant proves to be insurable either on the date the application was signed or the date of the medical examination, if one is required
.
What is the purpose of a conditional receipt?
A conditional receipt gives
an insurance company a window of time in which they can ultimately issue or refuse to approve the policy
. If during this time, the applicant for a life insurance contract dies, the company will pay a death benefit if the policy would have been issued.
What is the difference between a conditional receipt and a binding receipt?
under a conditional receipt ,
a death claim will NOT be paid if the application is declined by
the underwriter . under the binding receipt a death claim will be paid whether or not the applicants application is approved by the underwriter.
How is a conditional receipt best described?
How is a conditional receipt BEST described?
A receipt given to an applicant when an agent collects both the application and initial premium.
What is insurability conditional receipt?
The insurability conditional receipt is the type of receipt that is the most frequently used conditional receipt and is
based on the condition that the applicant proves to be insurable
.
Which of the following best describes a conditional insurance contract?
Which of the following BEST describes a conditional insurance contract?
A contract that requires certain conditions or acts by the insured individual
This means that the insurer’s promise to pay benefits depends on the occurrence of an event covered by the contract.
Which of the following is the best reason to purchase life insurance rather than annuities?
Based on those very simplistic explanations, the best reason for purchasing life insurance rather than annuities would be
to provide for your loved ones if you do not have much saved up
. … With life insurance, you gain an instant legacy. After that first premium is paid, should you die, your heirs have an instant estate.
What is the maximum penalty for habitual willful?
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? An individual who willfully violates this Act enough to constitute a general pattern or business practice, will be subject to a penalty of
up to $2,500
.
Which of the following is correct regarding credit life insurance quizlet?
The correct answer is:
Endowment contracts
endow only upon the insured’s death. Credit life insurance is issued on the life of the person who has the debt (debtor) and the creditor owns and is the beneficiary of the policy. You just studied 14 terms!
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
Claim will be paid if application is approved.
What are four types of whole life policies?
- Universal. Universal life insurance often is considered the most flexible of all of the whole life varieties that are available. …
- Current Assumption. …
- Excess Interest. …
- Single Premium.
What is the effect of a binding receipt given to an applicant?
: a receipt given to an applicant for insurance confirming that the application has been signed and the first premium paid and stipulating that
the insurance shall go into effect immediately if the risk proves to be acceptable irrespective of the date of delivery
of the policy. — called also binder, conditional receipt.
What is a conditional insurance contract?
An insurance
contract in which the insurer’s promise is conditioned upon (dependent upon) certain things occurring or being done
.
Which Nonforfeiture option has the highest amount of insurance protection?
Which nonforfeiture option has the highest amount of insurance protection?
The Extended Term nonforfeiture option
has the same face amount as the original policy, but for a shorter period of time.
Where is the difference between a standard risk in a substandard risk reflected?
When will the policy become effective? When the conditions of the receipt are met. Where is the difference between a standard risk and a substandard risk reflected? Is
the major personal contact to the insured
.
