Which of the following statements is not correct regarding rates and premiums? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Statements in the application that are guaranteed true but later found to be false may result in what? What is the MIB? Insurance companies can charge an interest rate based on the policyowner's credit report. 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. Alex, age 26, purchased a 20- payment whole life insurance policy. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. All of the following statements concerning coinsurance are true, EXCEPT C. group credit life insurance does not build cash values. c. It is the failure to use ordinary care. A policy summary . 3)Consideration Costs of training a replacement b. 1)tax qualified plans \end{aligned} Increasing term (c) conversion provision EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} 1) cash value earns interest The correct answer is: Premiums are typically paid by the lender. Who is not a party to the contract and receives the benefits when the insured dies? The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . B. Insureds current and future income a. whole life paid at 65 D. The policy is a bilateral contract What does "liquidity" refer to in a life insurance policy? \hline \text { Jul 1 } & \begin{array}{r} saalt menstrual disc how to use - evcc-estheticstraining.com What is the purpose of a suicide provision within a life insurance policy? According to the entire contract provision, what document must be made part of the insurance policy? All of the following are personal uses of life insurance EXCEPT, All of the following are true of key person insurance except, D. The plan is funded by permanent insurance only. c) Denying coverage after a reasonable investigation has been conducted 2. 1) Conditional Reciept Correct: B. 1) insured gets higher amount How does having children affect the decisions that couples must make when considering a divorce? b) 10% for early withdrawal All of the following are true of insurance except: Which of the following is NOT true about insurance? D. Accident c) Helping insureds to file claims All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. -Prepays portion of face amount if diagnosed with terminal illness. Receipt \end{aligned} A person cannot buy insurance unless that person is in a position to suffer a financial loss. One sided contract is a ______________ contract. AccountspayableJul1Jul3114,500??? b) Unilateral Free Standardized Tests Flashcards about Health&Life - StudyStack Which of the following about yearly renewable term insurance is true? 3) policy builds cash-value C. The insured may retain part of a risk through deductibles. 2)Decreasing Term D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. Solved All of the following statements about variable life - Chegg What is the term for a cause of loss, such as the theft of a car? d) Accumulations are tax deferred. -pays an additional death benefit if the insured dies from an accident C) Completing pre-licensing training. D. The face amount remains the same throughout the life of the policy. A. When a New York insurance agent or broker advertises services, he/she must list the full name of the insurer and the name of the city, town, or village that houses the principal office. 2) form of interest sensitive life insurance(current market conditions influence the cash value) A. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? 1)absolute assignment-all rights are assigned It is most appropriate when an insured needs lifetime protection. Use the indirect method. -policyowners right provision Which of the following is a physical hazard? B. Buy-Sell Agreements pay in the event of a medical emergency It is used to pay off the balance on the mortgage. All of the following statements about universal life insurance are true EXCEPT CashJul1Jul315,500???? Occupation 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. Tax-qualified annuities are subject to IRA maximum contribution limits. A debtor has an insurable interest in the life of a lender. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? a) Remains level. D. Concealment Renew policy holder has an option- THE INSURER DOES NOT. (a) capital retention approach Six Reasons the Loss is Excluded - MyNewMarkets.com (a) renewal provision baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. When applicant is not the insured ______________ must exist. An Applicant inaccurately representing information on the application is guilty of: A. D) Insurance covers intentional losses as well as unintentional. B. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. a) Year only. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. D. The benefit is received tax free. Contract of adhesion Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet Free Chapter 1 - Tests.com Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. IN WHITE RAIMENT. \textbf{For the Month Ended October 31, 2017}\\ 2) standard risk When will coverage begin? Are insurance company underwriters allowed to discriminate? 1) preferred risk 25,500, AccountspayableJul114,500???? All of the following statements are true of liability insurance, EXCEPT A. Only the MIB will provide information about an applicant's medical history. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Correct: B. a) Tax-qualified &\begin{array}{r|lr} 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. Whoso. 4) 3 components to the premium, The owner and the insured are different people. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? 1) mentally incompetent persons 5)Survivorship Life Policy (policy holder pays themselves). The Boyle family can be described as a \end{array} It requires evidence of insurability for renewal. -A Mec will receive unfavorable tax treatment She meets the definition of total disability under Social Security. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. C. Whole life A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. &\begin{array}{lr|rr} O d. All of the following are true of key person insurance EXCEPT ~~~\text{Selling and administrative salaries}&75,000\\ exclusions: when the accident occurs within an illness,disease, or mental infirmity. Universal Life is also known as two things what are they? B. Buy-sell agreements are normally funded with a life insurance policy. B. (b) reduced. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? 4)explain policy & provisions Chapter 11 - Life Insurance. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. 1)premium payment 4) Joint-Life policy(business part) Insurance policy of 2 or more 17,000, InventoryJul122,000???? Surplus lines broker deals with admitted carriers only -low commissions b) A producer who handles insurer funds in a trust capacity. D. Funding against general company financial loss C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Liquidity in life insurance refers to availability of cash to the insured. C. Premiums are determined by age sex and occupation of each individuals certificate holder. 2)FCRA(fair credit reporting act) checks MIB report. C. Waiver O c. The policyowner has the option of investing the cash value in several investment accounts. may not be altered by an agent and must clearly state that it is not part of the contract. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution b) Fiduciary responsibility. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. Accelerated Living Benefit/Accelerated Death Benefit? The applicants(policy owner) B. IRS has no jurisdiction A. c) Term life Prepare the following details: Mobile number, serial number, or IMEI. \hline c) The inspection report b) Index used by stock companies \hline \text { Jul 1 } & 22,000 \\ ~~~\text{Raw materials purchases}&\$264,000\\ Various life insurance programs for people who served in the military are called ______________? Chapter 3 part 1 Flashcards | Quizlet An annuity is exchanged for another annuity. Funding against financial loss caused by the death of a key employee C. Hazards B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. -birth of child. The policy is issued for one year and may be renewed annually with evidence of insurability. c) Coverage ends but the policy can be reinstated at any time. A policy that does not pay dividends to policyowners is a Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} 2. B) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. -pay for certain time and stop Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? Misappropriation or illegal withholding of the policyholder's money. What will probably happen? a) Types of mutual companies 1)physical exam 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? Certificate holders may convert coverage to an individual policy without evidence of insurability. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Modification to a policy is a _______________? D) the minor in a juvenile policy. (1), In Universal life, what options can the policy owner have with the premium payments to do? Healthcare in the United States - Wikipedia ~~~\text{Indirect labor cost}&28,000\\ An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. Suitability A whole life insurance policy is exchanged for a term insurance policy. (b) face amount of the policy and the total premiums that have been paid. Life insurance prodceeds However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. -sex doesn't determine eligibility. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? A __________ represents the insured. Flashcards - WA Common Law Practice Exam - FreezingBlue 4)Explain the policy and its provisions A) Any distributions from MECs are taxable, including withdrawals and policy loans. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Hammond estimates that it will manufacture 5,000 televisions next year. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. 3)MIB=records of all previous insurances they had. D. They can decide when to pay their monthly premiums. 2)Decreasing term(premium is low) declining face value B. The corporation also helps detect and prevent insurer impairments. They keep a high percentage of any interest earned on their policies Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. -immediately considered fully paid up The __________ branch of the state government influences public policy regarding insurance laws. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Term. (a) They increase at an increasing rate. A mutual insurance company does not have what? The cash value available to the policyowner ? (c) expired. (b) current assumption whole life. 2)quarterly 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. D) the minor in a juvenile policy. CPI (consumer price index) without evidence. Solved 55. All of the following statements regarding | Chegg.com 2)no cash-value B) bonds 3. a) No penalties, since the owner is older than 59 After examining other manufacturing cost data, you have acquired additional information as follows. Which of the following is usually true of a participating life insurance policy? 1. The CAS number shown in an entry is typically . ___________ is the persons whose death triggers payment. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? A surplus lines broker accepts business only from non- resident agents There is a minimum guaranteed interest rate on all sub-accounts. What are the (5) Factors considered with combination policies Who and What are they? The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. b. (d) Premiums increase at an increasing rate upon renewal. Now Tamara can afford whole life insurance. c) Guides describing company financial integrity d) The policy can be reinstated by paying back all policy loans and premiums. -the applicant must always initial the change 2)administered charge Represent the insured's interest An aleatory contract is a contract where the monetary values of the parties performances are________________. If company pays dividends, then they are a? What (5) Factors for GIO & GIB. whose covered? A conditional or binding receipt is given when an applicant does what? Statement of good health d) Fiscal responsibility. Insurance is not designed to cover _____________ losses. Most policies can be renewed for additional periods without evidence of insurability. Limited-Pay Life & Single-Premium Policies? A. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. The following are all true regarding risk management, except: A. -The insurance dept. Prior to October 2017, the company had been profitable every month. d) Buyer's Guide. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. The 3 categories of private insurers site of incorporation? A. -provides income for retirement The total of all requisitions of indirect materials issued during the month is$20,170.00. Life Insurance Flashcards - Cram.com ~~~\text{Depreciation on sales equipment}&45,000\\ D. Financial Experience. Life insurance proceeds Liquidity in life insurance refers to availability of cash to the insured through cash values. still matures at age 100, -premium is paid off at one time C. Application a) Small employers Insurance is designed to cover both intentional and unintentional losses. Conviction of a felony involving moral turpitude. What are two reasons that people deposit money in banks? 3)Minors. -greater potential to grow the cash value but there is no guarantee The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. b) The elderly \end{array} Who is responsible for making sure the application is completed properly and all necessary info is obtained? 1) the premium amount 1. a. -kids till 21 Which model is the better fit for the data? The debtor does not have an insurable interest in the life of the lender. 2)APS=medical records There is no limitation on the number of key employee plans in force at any one time. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. All of the following are true of negligence, except: a. insurable interest must exist. Rebating is an unfair trade practice and is regulated by law. Which of the following documents must be provided to the policyowner or applicant during policy replacement? Newborns after how many days become covered in a child rider? A. D. Workers compensation. 2) Binding Reciept. Is claim still paid if there is a misstatement of age or sex? Tom and Nancy Boyle provide financial support for their two children. 2)attorneys Premiums are taxable to the employee 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become (2), 1)HIPPA Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Estimated direct labor costs for next year are$440,000.00. . What is a statement in the application guaranteed true in all respects? (Choose from the following options) Correct: C. Consideration. \end{array} Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. -guaranteed/fixed/level payment, -Immediate "annuitization phase" and is NOT a party to the contract. Which of the following best describes a surplus lines broker? If there Is a risk of financial loss then there is a what? ? The premium is level and guaranteed not to increase. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 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. Whats the cheapest type of permanent insurance? B. (a) I only (b) II only 4. -has cash value invested in the stock market C. Whole life *The insured is diagnosed with terminal & chronicle illness \underline{\hspace{40pt}}. Domestic Insurer In a car accident dealing with ADB who covers the passenger? What are (4) ways annuities are classified? -ages 25,28,34,37,40 Hazard c) The policy will be voided. (economy). The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? 2)can be sold as a rider to a whole-life policy. -car accident not in conjunction with an illness A. b) Hazard Copyright 2009-2022 Tests.com LLC - All Rights Reserved. All of the following are true about health insurance except: Retention, Avoidance, and Transfer are all _________________. (b) They increase at a decreasing rate. -cash value can lose value. c) An agent offers tickets to a baseball game as an inducement to buy insurance. c) Accelerated benefit rider.