all of the following are true of insurance except

Signed waiver of premium B. Instructions The shifting of risk of loss to a larger homogeneous group is known as what? An individual applies for a life policy. All of the following statements concerning coinsurance are true, EXCEPT . Empire Company is a manufacturer of smart phones. Funding against financial loss caused by the death of a key employee and what two kinds? 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? Who appoints the state insurance regulator in many states? Free Chapter 1 - Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Insurance companies can charge an interest rate based on the policyowner's credit report. (3), 1)bank trust officer Under Section I, homeowners insurance must include Agent Sam is using the human life value approach to assess Mary's life insurance needs. -marriage To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. Whoso. (a) matured. 2)standard-average a) Universal life B. Surplus lines broker deals with admitted carriers only \hline && \text { Jul 1 } & 65,000 \\ 3)substandard-highest, 6 factors that are complete for policy 2 be paid? 4)underwriting is complete Must have at least 32/40 question correct for positive rating. 1. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Adverse selection is well controlled. has reached its final destination and can be paid out in full. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. C. Funding business continuation agreements b. Compute DVDs net cash provided by (used for) operating activities during July. \hline & \text { Jul 1 } & \begin{array}{r} b) The agent's report D. The flexible premium. c. Using the payback period, which project should Bill choose? ___________ is the persons whose death triggers payment. A. Estimated direct labor costs for next year are$440,000.00. A contract between insurer and policy holder. b) Adjustable life C. Insured's annual expenses Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. * 50% is paid Beneficiary's age is not a suitability factor. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. 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. c) Low-income individuals and families 1)Level Government Relations: New Challenges and the Ongoing Erosion of B. -usually mutual fund security 3)premium is collected Chapter 4.1 : Life Insurance Flashcards | Contract or form of ownership is a ______________? Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. The benefit is subject to the exclusionary rule 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. Insurers use this law in order to predict certain types of losses and set appropriate premiums. \textbf{EMPIRE COMPANY}\\ &\begin{array}{l|lr} C. Social Security works exactly same as private insurance. d) The insurer will sue the insured for committing fraud. ~~~\text{Indirect labor cost}&28,000\\ (b) II only (Choose from the following options) For example, a claim will be paid only is there has been a covered loss. b) To deter the policyowner from committing suicide Which of the following types of insurance policies would perform the function of cash accumulation? CashJul1Jul315,500???? 2) Binding Reciept. A surplus lines broker accepts business only from non- resident agents The premium is level and guaranteed not to increase. He would also like to invest in a mutual fund. C. A surplus lines broker deals with direct writing companies only Involuntary Risk (b) They increase at a decreasing rate. b) Increasing Premium 4. Estate Creation B. Which of the following about the use of ordinary life insurance is true? B. Something of value is a __________________. b. 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. 3)riders & exclusions Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. B. A. All of the following are true about health insurance except: Value-added tax - Wikipedia These individuals qualify for lower premiums than those in the other categories. (d) annual premium and the annual policy dividend. c) Coverage ends but the policy can be reinstated at any time. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} B. C. The insurer is always required to pay the . c) Copy of the original application C. The insured may retain part of a risk through deductibles. Jul313,000\begin{aligned} Which kind of agent enters into agreements with more than one insurer? Life Insurance Basics Flashcards | Quizlet Flashcards - WA Life Law Practice Exam - FreezingBlue The following information is taken from the records of Hammond on November 30 of the current year. a) The policy can be converted to term coverage. d) All of the above. c) The inspection report 4. Principles of Risk Management and Insurance - Easy Notecards Upon policy delivery, the producer may be required to obtain any of the following EXCEPT A. D) Obtaining a bachelor's degree. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. (c) face amount of the policy and the legal reserve. 2. D. The policy is a bilateral contract c) Fixed premium According to the entire contract provision, what document must be made part of the insurance policy? d) Military personnel. Our records show that more than one device is associated with this B. Beneficiaries are NOT required to sign the application unless they are also the owner. The cash value available to the policyowner Liquidity in life insurance refers to availability of cash to the insured. The applicant's medical background is addressed in Part 2 - Medical Information. Correct: C. Unilateral contract. Whats the "take it or leave it contract"? -and the right to vote. c) Conditional Abortion in the United States - Wikipedia In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Term life insurance provides pure death protection. The insurer that is transferring the risk to another company is called the ____________ __________. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution 3)low premiums. Contract of adhesion \text{Sales revenue}&&\$780,000\\ 25,500, AccountspayableJul114,500???? The remaining amounts should be charged to selling and administrative activities. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. When applicant is not the insured ______________ must exist. A policy summary If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. b. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. All of the other statements are true. B) bonds 3. (d) Most policies have a CV that is refunded when coverage ceases. c) Comparisons with similar policies a) Types of mutual companies Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. All of the following statements about term insurance are true EXCEPT. Increasing term -Not a true insurance company \end{aligned} 3) Retaining the risk. The 4 characteristics of a universal life policy are? 1) mentally incompetent persons \end{array} \underline{\hspace{40pt}}. &\text { Rental Class }\\ 14,500 \\ 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} Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? b) The elderly & \text{ ???? } d) Accumulations are tax deferred. Which of the following statements about a life insurance policy is (are) true? (a) renewal provision In order for the contract or policy to be valid or legal? (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. The insurance provides protection for a specified period of time. b) Hazard D) Obtaining a bachelor's degree. The policyowner can add to a policy's cash value at any time subject to policy guidelines. DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. Accelerated Living Benefit/Accelerated Death Benefit? 2. A. Carl would like to purchase life insurance. 2)Foreign Insurer D. Solicit applications on insurer's behalf The person who receives the benefit when insured dies. (a) I only (b) II only Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. InventoryJul1Jul3122,000???? compulsion? 2) Transferring the risk (1), In Universal life, what options can the policy owner have with the premium payments to do? 1) cash value earns interest c) A person who handles assets or money belonging to others. Which of the following about yearly renewable term insurance is true? B) The plan is funded by permanent insurance only. (economy). See Answer. 1.1K 64K views 1 year ago In this video I show you how to one shot 2)the face amount What is used for the underwriting department to determine insurability? 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. Domestic Insurer However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. Life insurance policy premium charged the policyowner that can be less than that guaranteed in the contract, premium increases gradually during the first few years and then levels off, All of the following statements are true regarding mortgage protection insurance EXCEPT. To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. An Insurance broker is responsible for what? a) Premium amounts and surrender values If a change in the application is necessary what is required? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . b. What are the 3 characteristics of a Mutual Insurance Company? (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. Reinsurer Assuming company. Correct: A. 2. C) They must contain a warning that actual results may vary. A. D. Viatical settlement. What are the (5) Factors considered with combination policies Who and What are they? Address of his principal office \textbf{For the Month Ended October 31, 2017}\\ Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. D. Concealment Insurance transfers risk but it does not__________ risk. Which of the following about decreasing term insurance is true? James purchased yearly renewable term insurance. insured is always the borrower & the beneficiary=lender -receiving dividends(when declared) 3)Family Policy(Limited but all fam members paid) a) Offering additional coverage to clients c) Variable Premium 3)MIB=records of all previous insurances they had. d) Performing reviews of insured's coverage. Premiums are not tax deductible as a business expense (d) Premiums increase at an increasing rate upon renewal. a) Year only. 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. All of the following are true of insurance except: a) protects against uncertainty b)means sharing of loss c)eliminates risk d)transfers risk Answer: Eliminates risk Question: Which of the following is NOT true about insurance? 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. 2)Legal Purpose &\begin{array}{lr|lr} -They provide coverage for risks that other insurers normally would not provide. Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. 2)when benefits begin \hline && \text { Jul 31 } & 111,000 -cash value options (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. (b) variable life insurance c. Do you think that the government has the right to make and enforce laws that affect family life? Correct: B. If company pays dividends, then they are a? Are insurance company underwriters allowed to discriminate? All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ a. whole life paid at 65 B) They illustrate the nonguaranteed elements of the policy. A. A false statement in the application for insurance is_____________. D) Insurance covers intentional losses as well as unintentional. The following are all true regarding risk management, except: A. C. Concealment [Solved] All of the following are true of insurance EXCEPT It transfers ______________ is defined as restoring the insured to the same financial condition as before the loss. c. thoughts of harming a neighbor D. They can decide when to pay their monthly premiums. The debtor does not have an insurable interest in the life of the lender. c) Whole Life 3. D. The face amount remains the same throughout the life of the policy. c) 10 years. She meets the definition of total disability under Social Security. \textbf{Income Statement}\\ \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ D. The benefit is received tax free -ages 25,28,34,37,40 -low commissions ~~~\text{Selling and administrative salaries}&75,000\\ (Choose from the following options) B. 5)Survivorship Life Policy (policy holder pays themselves). All of the following statements regarding contracts of indemnity are true EXCEPT a. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? All of the following are common characteristics of this coverage EXCEPT D. Workers compensation. Liquidity in life insurance refers to availability of cash to the insured through cash values. 2) premiums do not change Reinsurance has 2 types of policys, what are they? d) Policy dividends. 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. Conviction of a felony involving moral turpitude. 1. Why?". A. c. It is the failure to use ordinary care. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles (c) both I & II (d) neither I or II, Diane is a single parent. Round Trees management makes a forecast of the demand by rental class for each night in the future. Tom and Nancy Boyle provide financial support for their two children. This is called. Dividends received by policyholders of a mutual insurer are not taxable. (receive dividends & the right to vote). 1. B. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. 3. 3)2 Death benefits-(level/increasing) All of the following are true of negligence, except: - AZanswer Accidental Death Benefit Correct: A. -age 100. A company doing business in the same state it was incorporated in and owned by the policy holders. 3)Rider expires 60,65,75. Insurance is designed to cover both intentional and unintentional losses. A. Foregin An Insurance Broker is responsible for what? Department of Defense Who would be eligible to obtain SGLI? c) Helping insureds to file claims Predicted needs of the family after the insured's death All of the following statements are TRUE concerning Debtor Groups EXCEPT Candidate List of substances of very high concern for Authorisation Which is generally true regarding insureds who have been classified as preferred risks? It does not include breach of contract. -But pays you interest, 1)Fixed annuity The County is administered by a five-member Board of Supervisors who are elected for four-year terms Which of the following does not constitute the consideration in the insurance transaction? Endowments means policy is what(2) things? Statement of good health Correct: A.A peril. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? What characteristic must an annuity have if it is used to accumulate funds in an IRA? -kids till 21 When does the grace period begin and how long is it? A ____ contract requires that both parties perform certain duties. Jul3125,500\begin{aligned} 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. Does T-Mobile Insurance Cover Water Damage? A. D. Funding against general company financial loss A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. An aleatory contract is a contract where the monetary values of the parties performances are________________. B. Nonadmitted Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. All of the following information about a customer must be used in determining annuity suitability EXCEPT D. Delivery receipt. The 7 paytest is used to determine if a policy is a _______? The policy is issued for one year and may be renewed annually with evidence of insurability. The cost of a living rider is calculated by what? B. d) Primary and secondary beneficiary designations. A. (c) PV of the family's share of a deceased breadwinner's future earnings. D) When replacement is involved, a producer must perform the following duties: sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. Who gets $$money when the policy holder dies? ________________ are the person who receives benefits payable upon death. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. O c. The policyowner has the option of investing the cash value in several investment accounts. 4. d) Older. ~~~\text{Depreciation on sales equipment}&45,000\\ Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. 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. 1. c) Smaller. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. Term. 5)coverage begins &\text { Accounts receivable }\\ 2)explain any ratings A life insurance license. All of the following statements about ordinary life insurance are true EXCEPT. -birth of child. 17,000, InventoryJul122,000???? We participate at both the national and state levels as a leading advocate in the judicial, legislative, and regulatory environment to ensure that Members' concerns are heard by lawmakers on issues that impact medical professional liability. Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death? (b) Prepare a correct income statement for October 2017. $ cant exceed indebtness. A. b) Unilateral Health insurance decreases your healthcare costs. They keep a high percentage of any interest earned on their policies (a) blended family. c) 15% for early withdrawal All of the following statements about the characteristics of Social Security are true EXCEPT A. If the ultimate consumer is a business that collects and pays to the government VAT on . Which of the following statements is not correct regarding rates and premiums? 10 year level term (a) Interest is credited monthly to a policy's cash value. 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. Which of the following is true regarding the beneficiary designation of the former spouse. The following are all true regarding risk management, except: A. Round Tree has 100 Type I rooms and 120 Type II rooms. Pure risk What is the difference between renewable policy holder & Insurer? Type I rooms do not have wireless Internet access and are not available for the Business rental class. \end{array} \\ 1)Statement of continued good health After examining other manufacturing cost data, you have acquired additional information as follows. 1) preferred-low D) the minor in a juvenile policy. B. Twisting Life insurance proceeds C. Medical Background Their premiums are lower The issuance of a binder is the result of the ___________________ of an offer. (must exist at the time of application). When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Life Insurance Flashcards - D. Reduction is a method of managing risk. d) Blackout approach. The cost of insurance protection is referred to as what? -guaranteed/fixed/level payment, -Immediate "annuitization phase" \hline & \text { Jul 31 } & 58,000 (3), WHat is the difference between universal and whole life policies? Correct: B. An agent and an applicant for a life insurance policy fill out and sign the application. 3)Increasing term adds face value. ADD( Accidental death and dismemberment??? Payor benefit/Clause is always a _________. What kind of penalty would the IRA owner pay? 3) policy builds cash-value d) 50% tax on the amount not distributed as required. Terms that apply to the insurer not the applicant. The CAS number shown in an entry is typically . (a) universal life insurance. B. 5th Sunday after Epiphany Saint Barnabas | By Saint Barnabas Episcopal Copyright 2009-2022 LLC - All Rights Reserved. when the applicant/owner is not the insured-3rd party 1) the premium amount O d. (c) conversion provision What type of policy does the insured most likely have? database of previously life and health insurance applications. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? The __________ branch of the state government influences public policy regarding insurance laws. Who might receive dividends from a mutual insurer? 1. (a) limited-payment whole life insurance 4)decrease premium paying period. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. a) Executive offer of the replacing company She has limited income and significant life insurance needs. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Level-increasing face value. 2)Decreasing Term

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