If the insured commits suicide after the 2 year period, the policy will pay the death proceeds to the designated beneficiary the same as if the insured had died of natural causes. -20 pay life-paid up at 65 Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Why?". 4. \text{Sales revenue}&&\$780,000\\ c) Accelerated benefit rider. database of previously life and health insurance applications. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. C. Whole life Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The policy does not go into effect until the premium has been collected. There is no limitation on the number of key employee plans in force at any one time. All of the following statements are TRUE concerning Debtor Groups EXCEPT 2)Foreign Insurer d) Primary and secondary beneficiary designations. d) The insurer will sue the insured for committing fraud. 4. (receive dividends & the right to vote). Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? (a) universal life insurance. B. Aleatory contract B. Misrepresentation Who would be eligible to obtain SGLI? Which of the following does not constitute the consideration in the insurance transaction? ______________ is defined as restoring the insured to the same financial condition as before the loss. b) The policy will not be affected. As her friend, you have been asked to review the income statement and make necessary corrections. All of the following information about a customer must be used in determining annuity suitability EXCEPT Whoso. \end{aligned} Cash values are available in whole life policies. 3)MIB=records of all previous insurances they had. \textbf{Income Statement}\\ b) Adjustable life 1. Insurance is designed to cover both intentional and unintentional losses. Rates. A. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. (a) Evidence of insurability is not required to renew the coverage. Term-Life policy has what 3 characteristics? A. c. It is the failure to use ordinary care. Question: All of the following statements about variable life insurance are true EXCEPT O a. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ The premium is level and guaranteed not to increase. 3)riders & exclusions Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. b) Promptly forwarding premiums to the insurance company c) Helping insureds to file claims -The insurer would pay the face amount of the policy minus the past due premium. 2) form of interest sensitive life insurance(current market conditions influence the cash value) Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? Jul3119,500\begin{aligned} a) A retail clerk. B. Renew policy holder has an option- THE INSURER DOES NOT. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. 1) the premium amount 1)Whole Life A. What are the (5) Factors considered with combination policies Who and What are they? Correct: A. c. Whats the cheapest type of permanent insurance? b) The elderly A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? D) adding cost of living coverage. Jul3117,000\begin{aligned} When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? &\text { Retained Earnings }\\ Daycare is considered to be among these expenses. 2)Decreasing Term Hammond estimates that it will manufacture 5,000 televisions next year. If company pays dividends, then they are a? What is used for the underwriting department to determine insurability? 2)collateral assignment-some or only one right assigned. In this case, the applicant will most likely need to fill out a Statement of Good Health. d) Living need rider. 2) profits are returned as dividends -sex doesn't determine eligibility. The policy is issued for one year and may be renewed annually with evidence of insurability. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. All renewable term policies are accepted without__________ and only with_____ collected. The CAS number shown in an entry is typically . 5)Survivorship Life Policy (policy holder pays themselves). a) Executive offer of the replacing company Department of Defense D. Department of Treasury Which of the following best illustrates a Beneficiary's age is not a suitability factor. C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. a) To limit the insurer's liability after the 2 year waiting period Insurance is an important tool to manage risks, but often unavailable to poorer households. The ___________ controls all rights of the contract. (d) neither I nor II. ~~~\text{Advertising expense}&90,000\\ c) Counselor a. whole life paid at 65 3)2 Death benefits-(level/increasing) a) Using arbitration when the insured and insurer cannot reach agreement 10 year level term An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? See Answer. The debtor does not have an insurable interest in the life of the lender. may not be altered by an agent and must clearly state that it is not part of the contract. In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). B. Occupation \text { Type II } & \$ 20 & \$ 30 & \$ 40 B. 2)no cash-value B. All of the following statements about term insurance are true EXCEPT. -the premiums are paid for a limited time only. C. Hazards An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. Where does group-life insurance come from? B) The plan is funded by permanent insurance only. B) Passing examination with 75% or higher score. Which of the following is the basis for a claim against an insurance policy? WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. 4)explain policy & provisions The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. What characteristic must an annuity have if it is used to accumulate funds in an IRA? When does the grace period begin and how long is it? -receiving dividends(when declared) C) They must contain a warning that actual results may vary. \end{array} (a) renewal provision still matures at age 100, -premium is paid off at one time A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. C. A husband or wife has an insurable interest in their spouse insured is always the borrower & the beneficiary=lender d) 50% tax on the amount not distributed as required. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers \end{array} Correct: B. c) An agent offers tickets to a baseball game as an inducement to buy insurance. WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. & \text { Depr } & 3,000 \\ Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. C. State Education Waiver The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. 2)Variable annuity a. B. Insureds current and future income -low commissions He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. For example, a claim will be paid only is there has been a covered loss. Which method makes the most sense for her to employ? b) Increasing Premium Quarterly working capital levels for your firm for the next year are included in the following table. A whole life insurance policy is exchanged for a Universal life insurance policy. Conditional contract means the policy holder does what? b. it frequently includes coverage for losses due to casualty and theft. A. B. An Applicant inaccurately representing information on the application is guilty of: A. A contract between insurer and policy holder. An insured owns a life insurance policy. Term life insurance provides pure death protection. If someone dies within the Grace period, what happens? Adverse selection is well controlled. c) Policy loans are taxable distributions. 3)increase the length of coverage don't pick binding receipt at all on test. Signed waiver of premium A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. D. Speculative Risk Carl would like to purchase life insurance. D. Premiums are tax deductible as a business expense, B. 2)non-qualified plans b. -birth of child. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Fraud 3)Family Policy(Limited but all fam members paid) ADD( Accidental death and dismemberment??? CashJul1Jul315,500???? What contract characteristic does this describe? B. Avoidance Its controller resigned in October 2017. D. The face amount remains the same throughout the life of the policy. D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. \\ \hline \text { Jul 31 } & 17,000 What are the two options in death benefit options? The total of all requisitions of indirect materials issued during the month is$20,170.00. c) Whole Life (d) indeterminate-premium whole life. (c) PV of the family's share of a deceased breadwinner's future earnings. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. b) Copies of illustrations and application Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. A producer wishing to appeal the final order of the commissioner would appeal to???? (a) present value of future benefits and the present value of future premiums. A key person insurance policy can pay for which of the following? B. Buy-Sell Agreements pay in the event of a medical emergency Executive office The __________ branch of the state government influences public policy regarding insurance laws. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. I. Type I rooms do not have wireless Internet access and are not available for the Business rental class. -greater potential to grow the cash value but there is no guarantee a) Consumer Privacy Act When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. A) the agent. c. Using the payback period, which project should Bill choose? b) Fiduciary responsibility. &\text { Cash }\\ a) Material change Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} A ______ will receive unfavorable tax treatment. C. Countersign insurance contracts Does T-Mobile Insurance Cover Water Damage? Prepare a pie chart of on-time delivery performance for last month. Correct: C. Condition contract, enforceable only under certain conditions. \hline \text { Jul 1 } & \begin{array}{r} d) The Medical Information Bureau. This method of estimating . A. signed waiver of premium Level-increasing face value. ~~~\text{Indirect labor cost}&28,000\\ b) Unilateral According to the entire contract provision, what document must be made part of the insurance policy? Beneficiary's age In order for the contract or policy to be valid or legal? Social Security is designed to provide a base of economic security B. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? 2)interest sensitive (c) They decrease at a constant rate. B. The insurance company may not void the insurance policy for which of the following reasons? \end{aligned} B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. c) Guides describing company financial integrity An annuity is exchanged for another annuity. C. Buy-Sell agreements are normally funded with a life insurance policy Now Tamara can afford whole life insurance. Non-Participating (stock) Life Insurance Policy. Which of the following is TRUE regarding assignment rights for . Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. \hline \text { Jul 1 } & 5,500 &&\\ \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ c) 15% for early withdrawal Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. This form of life insurance has fixed premiums and the cash value is not guaranteed. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). The person who receives the benefit when insured dies. Warranty 4)Consumer report=credit, -shorter time span for paying premiums a) More active. \end{array} \\ (b) Cash value accumulation is slow to moderate. \hline && \text { Jul 1 } & 65,000 \\ A peril B. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ It requires evidence of insurability for renewal. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer A. c. Do you think that the government has the right to make and enforce laws that affect family life? &\begin{array}{lccc} 4. (c) Most policies can be converted to a permanent life insurance policy. 1) Avoiding the risk O c. The policyowner has the option of investing the cash value in several investment accounts. (2), 1)HIPPA C. The insurer is always required to pay the . D. The face amount remains the same throughout the life of the policy. C. Loss of personal income B. D. The flexible premium. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. Cash values can be borrowed at any time D. Delivery receipt. See Answer. 1) All requirements are met A surplus lines broker deals with direct writing companies only Term life insurance provides the largest amount of coverage for the lowest amount of premium. (c) The number of times the coverage can be renewed is limited. \end{array} Which of the following is the basic source of information used by the company in the risk selection process? Only one party is giving a legally enforceable promise- A one-sided contract is what? The parties in the insurance contract consist of whom? Cash value is invested in the stock market. Term. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. (Choose from the following options) a) Accumulated at interest -age 100. considers Lloyds of London an Alien insurer A surplus lines broker accepts business only from non- resident agents Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. An applicant is denied insurance because of information found on a consumer report. A. The 3 categories of private insurers site of incorporation? (b) II only b) To deter the policyowner from committing suicide The insurer issues the policy and learns of his history one year later. 3. 3. c) The policy will be voided. Involuntary Risk d) Tax-deductible. b) An agent offers to share his commission with a policyholder. IN WHITE RAIMENT. All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. Universal Life is also known as two things what are they? b. 4)defined contribution plans. 2) Transferring the risk An agent and an applicant for a life insurance policy fill out and sign the application. 1) premium schedule differ from whole life Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. Which of the following statements concerning buy-sell agreements is true? (a) I only An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. An aleatory contract is a contract where the monetary values of the parties performances are________________. b) Human life value approach ~~~\text{Selling and administrative salaries}&75,000\\ 6)free-look period-$ back guaranteed. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health All of the following are true of insurance EXCEPT It transfers risk. c. thoughts of harming a neighbor -it pays the double indemnity, 1)accident occurs, person must die within 90 days Which of the following is an example of liquidity in a life insurance contract? How does having children affect the decisions that couples must make when considering a divorce? Accidental Death Benefit All The statements made on the application are called ______? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Medical exams provide information on current health. -policyowners right provision In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? Which type of life insurance makes sense for someone in this situation? Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. 1) Competent Parties Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. 3)defined benefit plans 3) policy builds cash-value c) To protect the policyowner Exclusions always exist, and there is a reason for each one. (b) Cash value accumulation is slow to moderate. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? B. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? 4. 1 / 25. If there Is a risk of financial loss then there is a what? All of the other statements are true. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. c) A person who handles assets or money belonging to others. d) Military personnel. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. Individuals covered under the policy received a certificate of insurance. -has cash value invested in the stock market d) Policy dividends. What must exist at the time of the application? An agent has authority to do all of the following, except: A. Countersign insurance contracts Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". 2)the face amount b) Policyholder It is a type of tort. CPI (consumer price index) without evidence. 2. c) Term life An Insurance broker is responsible for what? What is the primary source of info for the underwriting department to determine insurability? Premiums are not tax deductible as a business expense. c) National Association of Insurance Commissioners D. The benefit is received tax free C. The policy is an aleatory contract (4), 1)monthly c) 10 years. All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. a) Remains level. -immediately considered fully paid up AccountsreceivableJul1Jul3121,000???? Applicant pays premium to make agreement. I. -the insurer sets the terms of the contract and the applicant must adhere to them. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. A. A policy summary usually includes all the listed information, and must be delivered along with a new policy. An insurance consultant CANNOT be which type of persons? Can term insurance be both renewable and convertible? 2)Decreasing term(premium is low) declining face value (a) They increase at an increasing rate. b) Fluctuates. Premiums are not tax deductible as a business expense The designation will be void/. A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. All of the following are true of negligence, except: a. *Both not taxable. Insurance is considered a transfer of risk. What is the difference between renewable policy holder & Insurer? \hline This type of life insurance is called Breach of warranty Which of the following statements is not correct regarding rates and premiums? C. Whole life 1) preferred-low 2) Binding Reciept. The issuance of a binder is the result of the ___________________ of an offer. A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. \end{array} \\ C. The benefit is received as taxable income (b) The face amount of the policy is paid if the insured lives to age 65. Premiums are taxable to the employee Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . An annuity whose based on the stock market index? Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. Arrest History. C. Premiums are tax deductible by the key employee (d) free look provision. When a policy is contributory how much is paid? The cost of a living rider is calculated by what? All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. ~~~\text{Utilities expense}&12,000\\ The agent (c) two-income earner family. -pay for certain time and stop a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. A persons assets & liabilities at their time of death. (a) I only (b) II only -also the agent may be required to initial the change, statement of health from insureds personal physician, What are 2 federal laws that protect policy holders & forms that must be completed? 2. -marriage C) purchasing family term insurance. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds The applicant has been shown to be a poor personal credit risk. A. d) Fair Credit Reporting Act. 2)face amount is set A corporation is the owner and beneficiary of the key person life policy. 1)temporary D. Viatical settlement. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. All of the following characterize term life insurance, EXCEPT: Select one: a. Something of value is a __________________. D. Gender. 3)Alien Insurer. 2)Increase the face value Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. -cash value options -car accident not in conjunction with an illness A false statement in the application for insurance is_____________. (d) paid-up. A key person insurance policy will pay for costs of running the business and replacing the employee. O d. d. It does not require a duty to be owed. The cash value of availability to the policyowner An__________ represents the insurer. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. On DUE DATE. It is used to help adequacy and equity in rates. Is claim still paid if there is a misstatement of age or sex? 3) Equity-Index annuity. Reinsurance has 2 types of policys, what are they?

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