";s:4:"text";s:28440:"When Applicant P fails to disclose all of his motor vehicle violations in an application for automobile insurance, he may be guilty of: A. Estopple In this case, the applicant will most likely need to fill out a Statement of Good Health. Does T-Mobile Insurance Cover Water Damage? 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. Which type of risk involves the possibility of loss or gain? c. Using the payback period, which project should Bill choose? Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. D. The benefit is received tax free. Tax-qualified annuities are subject to IRA maximum contribution limits. D. Represent the insured's interest All of the following statements about term insurance are trueEXCEPTa. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? 4)Explain the policy and its provisions
Address of his principal office A. & \text{ ???? } c. thoughts of harming a neighbor (D The employer is the owner, payor and beneficiary of the policy. B. Insureds current and future income The applicant accepts the invitation by paying the ___________. (a) They increase at an increasing rate. A debtor has insurable interest in the life of a lender Domestic Insurer
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C. Insured's annual expenses (c) The number of times the coverage can be renewed is limited. B. The money in a savings account Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ An insurer that was incorporated in a different state that it is doing business in. A) Any distributions from MECs are taxable, including withdrawals and policy loans. &\text { Accumulated depr.-equipment }\\ Premiums are taxable to the employee -Voting. He would also like to invest in a mutual fund. C. Buy-Sell agreements are normally funded with a life insurance policy The debtor does not have an insurable interest in the life of the lender. C. Loss of personal income ________________ are the person who receives benefits payable upon death. D. Term life. ___________ is the persons whose death triggers payment. Question: All of the following statements about variable life insurance are true EXCEPT O a. 3)2 Death benefits-(level/increasing)
Cash value is the same as ___________ when the policy matures. 4)decrease premium paying period. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. d) Older. B) The plan is funded by permanent insurance only. B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. -ages 25,28,34,37,40
Estate Creation B. B. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. a) Offering additional coverage to clients \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ 5)Explain when coverage begins
&\begin{array}{lr|lr} An Insurance broker is responsible for what? Only one party is giving a legally enforceable promise- A one-sided contract is what? C. Social Security works exactly same as private insurance. A SEC registration. (a) universal life insurance. (Choose from the following options) A. What type of interest does universal life have? After examining other manufacturing cost data, you have acquired additional information as follows. \text{Inventory} & 201 & 505 & 905 & 52 \\ Term life insurance provides pure death protection. c) National Association of Insurance Commissioners 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. (c) They decrease at a constant rate. Investors become more risk averse. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? a) Agent's report (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. Can term insurance be both renewable and convertible? D. The face amount remains the same throughout the life of the policy. 4. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. c) The policy will be voided. Who assumes control over an insurance company's funds and management if it becomes insolvent? C. Risk \end{aligned} b) Adjustable life The shifting of risk of loss to a larger homogeneous group is known as what? RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. ~~~\text{Utilities expense}&12,000\\ Increasing term \hline && \text { Jul 1 } & 65,000 \\ A. C. The policy is an aleatory contract They become permanently disabled
Receipt
D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. Most insurance policies contain a specific limit that an insurer will pay for a single claim. Which method makes the most sense for her to employ? The remaining amounts should be charged to selling and administrative activities. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. ? b) Cost of living rider. B. Aleatory contract *The insured is diagnosed with terminal & chronicle illness
Pertaining to insurance, what is the definition of a fiduciary responsibility? The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? In a car accident dealing with ADB who covers the passenger? 4) 3 components to the premium, The owner and the insured are different people. In an insurance contract, the value that each party gives the other is called the: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would it be considered in New York? It is used to help adequacy and equity in rates. d) Fiscal responsibility. What is a statement in the application guaranteed true in all respects? (c) both I & II (d) neither I or II, Diane is a single parent. If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. Something of value is a __________________. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? Most policies can be renewed for additional periods without evidence of insurability. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? a) Remains level. c) Extended term C. They can borrow higher amounts off of their policies \end{aligned} C. Whole life Correct: C. Unilateral contract. c) Variable Premium 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? -it pays the double indemnity, 1)accident occurs, person must die within 90 days
-The insurance dept. b) Fiduciary responsibility. Only the MIB will provide information about an applicant's medical history. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . -Not invested in stock market
Contract or form of ownership is a ______________? 2)quarterly
Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? d) The policy can be reinstated by paying back all policy loans and premiums. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. B. What are (4) ways annuities are classified? Insurance is designed to cover both intentional and unintentional losses. Conviction of a felony involving moral turpitude. e. The total of costs recorded on all sales invoices for the month is$654,052.00. Tom and Nancy Boyle provide financial support for their two children. \text{ ???? } a) Consumer Privacy Act C. A husband or wife has an insurable interest in their spouse a) An agent offers the use of his lake house to person as an inducement to buy. d) Limited pay. -insured can stop paying premiums at certain age or after a period of time
-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? Economics questions and answers. Correct: B. Misappropriation or illegal withholding of the policyholder's money. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. c) Comparisons with similar policies c) 10 years. Now Tamara can afford whole life insurance. (a) renewal provision Limited-Pay Life & Single-Premium Policies? Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? What is an exchange of a whole entire life policy for another? Round Tree has 100 Type I rooms and 120 Type II rooms. \end{aligned} What is NOT invested in the stock market but pays you interest? 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. B. IRS has no jurisdiction C. Independent rating services evaluate and rate the financial ability of insurance companies b) 10% for early withdrawal Since they may receive a dividend (not guaranteed), such policies are known as participating policies. A key person insurance policy will pay for costs of running the business and replacing the employee. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? 1)Whole Life
The failure to disclose known facts is what? 3. A. Premiums are not tax deductible as a business expense B) A fiduciary is a producer who handles insurer funds in a trust capacity. A. All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. 1)tax qualified plans
(d) free look provision. d) Accumulations are tax deferred. What (5) Factors for GIO & GIB. whose covered? The person who receives the benefit when insured dies. Correct: D. Concealment. \end{array} 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. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). D. A surplus lines broker deals with admitted carriers only d) 50% tax on the amount not distributed as required. 3)Consideration
It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. 2)can be sold as a rider to a whole-life policy. 2)Straight Life
Statements in the application that are guaranteed true but later found to be false may result in what? 3)certified public accountants, Is insurance that is provided by the Federal or State government
What are the permanent working capital needs of your company? B. Marital Status \hline & \text { Jul 1 } & \begin{array}{r} CPI (consumer price index) without evidence. D. Offer Which of the following is a financial rating service? A persons assets & liabilities at their time of death. Insurance is designed to provide protection against which of the following? D. Solicit applications on insurer's behalf Compensating executives D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. A. a) Using arbitration when the insured and insurer cannot reach agreement 2) Binding Reciept. Being young and healthy means you can skip out on health insurance. On DUE DATE. C) the proposed insured. 2)premium gets lower. C. Application Which of the following is true regarding the beneficiary designation of the former spouse. Jul3119,500\begin{aligned} O d. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? The purpose of an estate clearance fund is to pay all of the following EXCEPT. What are the 3 characteristics of a Mutual Insurance Company? ____________ insurer is not a type of insurer. -and the right to vote. An insured becomes disabled at age 22 and can no longer work. D. Workers compensation. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. She meets the definition of total disability under Social Security. Participating policy. 3)2 death benefit option
The policy is a conditional contract Correct: C. Condition contract, enforceable only under certain conditions. A. \end{array} Contract of adhesion Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Rating codes are assigned to show financial strength or weakness of each company rated a) Payor rider. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. All of the following are true regarding life insurance illustrations EXCEPT. B. Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? An underwriter will consider each of the following factors when evaluating a risk, except: A. -Prepays portion of face amount if diagnosed with terminal illness. Which of the following is the best reason to purchase life insurance rather than annuities? Alex, age 26, purchased a 20- payment whole life insurance policy. The replacing company notifies the replacement company. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. b) Failure to promptly settle a claim when liability has been clearly established B. Nonadmitted a) Universal life b) To deter the policyowner from committing suicide All of the following are common characteristics of this coverage EXCEPT Payor benefit/Clause is always a _________. \end{array} \\ 3)Explain any riders or exclusion
D. Aleatory contract 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. Steven prints a pamphlet to advertise his life insurance business. All of the following are required signatures on a life insurance application EXCEPT. These individuals qualify for lower premiums than those in the other categories. The cash value of availability to the policyowner Who is not a party to the contract and receives the benefits when the insured dies? c) Fixed premium B. d) Buyer's Guide. The 3 categories of private insurers site of incorporation? For this amount of production, total factory overhead is estimated to be $396,000.00. The insurance provides protection for a specified period of time. b. D. Effect of inflation on income over time. (c) variable life insurance. There are 2 parties of the contract- what are they? d) 15 years. 2)APS=medical records
You cannot sell a variable policy without what? b) An agent offers to share his commission with a policyholder. 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. 2)face amount is set
A. To sell variable insurance what must you have? Who would be eligible to obtain SGLI? c) Disclosure rule D. Breach of warranty A _______ __ is the additional premium needed to get covered with high or substandard risk. c) Premium accountability. C) purchasing family term insurance. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. -the insurer sets the terms of the contract and the applicant must adhere to them. Use the indirect method. A false statement in the application for insurance is_____________. b. -pays an additional death benefit if the insured dies from an accident
Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. 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. \end{array} \\ Insurance is designed to cover both intentional and unintentional losses. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. (c) both I & II (d) neither I nor II. B) bonds 3. 4)defined contribution plans. Term life insurance provides the largest amount of coverage for the lowest amount of premium. b) State attorney general B. Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? Originating policy
B. Buy-Sell Agreements pay in the event of a medical emergency B. -below market interest rates on borrowing
C. It's a decreasing term insurance. In order for the contract or policy to be valid or legal? 3)Rider expires 60,65,75. (d) sandwiched family. A __________ represents the insured. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. 2)not payable in conjunction. \hline \text { Jul 1 } & 22,000 \\ Difference between Universal Life Insurance and Whole Life Insurance? D. Premiums are tax deductible as a business expense, B. A. c) Conditional a. (2), 1)HIPPA
What are some of the questions asked on the application to determine the premium and risk classification of the insured? b) Promptly forwarding premiums to the insurance company She has limited income and significant life insurance needs. All of the following are business uses of life insurance EXCEPT \text { Type II } & \$ 20 & \$ 30 & \$ 40 25,500, AccountspayableJul114,500???? (c) term insurance Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. B. -policy holder adheres to it
*Both not taxable. a) Accepted accounting principal. a) Accumulated at interest 1) premium schedule differ from whole life
Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. An annuity whose based on the stock market index? B) Underwriters. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Height Weight and Health conditions. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ \end{array} Everything else equal, how would the factor below affect the market value of a stock? Conditional contract means the policy holder does what? D) They must be signed by both the Producer and the applicant. II. c) Term life D. An individual has an insurable interest in her or her own life. Jul3117,000\begin{aligned} (1), In Universal life, what options can the policy owner have with the premium payments to do? 2)standard-average
Study with Quizlet and memorize flashcards containing terms like Which of the following would not appear in the asset section of an insurance company's balance sheet? 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} The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. \hline && \text { Jul 31 } & 111,000 The designation will be void/. d) Loss. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Who appoints the state insurance regulator in many states? -Follows all conditions of contract & pays premium, -insurer says how policy works
S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Claim is still paid with an adjustment to the benefits. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. In addition, they provide financial support for Tom's aged father and Nancy's aged mother.
Waive the premium if the INSURED becomes totally disabled. Insurance is not designed to cover _____________ losses. C. A surplus lines broker deals with direct writing companies only 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. C. Premiums are determined by age sex and occupation of each individuals certificate holder. a) Executive offer of the replacing company Which of the following statements is not correct regarding rates and premiums? Costs of training a replacement B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. 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). In this particular instance the applicant did not commit intentional fraud. 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? An insured owns a life insurance policy. Suitability Conditional Contract D) the minor in a juvenile policy. I. (b) They increase at a decreasing rate. (a) present value of future benefits and the present value of future premiums. database of previously life and health insurance applications. The minimum FREE LOOK period is how many days? b) Hazard Involuntary Risk a) Tax-qualified B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. IN WHITE RAIMENT. Foreign. -Not a true insurance company
1. D. Department of Treasury (Medic Information Bureau)? 1)physical exam
1 / 25. What kind of penalty would the IRA owner pay? Which of the following statements concerning buy-sell agreements is true? Hazard The insurer issues the policy and learns of his history one year later. Which of the following documents must be provided to the policyowner or applicant during policy replacement? Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. 10 year level term d) Decreases annually. C. The insurer is always required to pay the . A. C. Conditional contract Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Who gets $$money when the policy holder dies? B. Signed waiver of premium _______ pays dividends to the stock holder. b. it frequently includes coverage for losses due to casualty and theft. 4)settlement options, 1)stand alone policy
C. Tax Status 3)MIB=records of all previous insurances they had. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. a. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded
A. Which of the following is an example of an unfair claims settlement practice? (a) I only (b) II only A. signed waiver of premium An annuity is exchanged for another annuity. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer
A mutual insurance company does not have what? The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. D. The ratings are available to the public 6)free-look period-$ back guaranteed. The Waiver of Cost of Insurance rider is found in what type of insurance? A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. Who represents the insured when dealing with insurance companies? 1. An Insurance Broker is responsible for what? If company pays dividends, then they are a? Which of the families below is likely to have the least need for a large life insurance policy? B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. What is the primary source of info for the underwriting department to determine insurability? B. Twisting A FINRA registration. -Take it or leave it contract
Their premiums are lower Fraud Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). An insured is driving her automobile and strikes a large pothole that . Beneficiary's age (a) I only 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) variable life insurance All of the following statements about term insurance are true EXCEPT. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. Coverage is available in $50,000 increments up to the maximum of $400,000. 1. Which of the following best illustrates a Costs of training a replacement An individual applies for a life policy. a) Year only. D. Funding against general company financial loss. 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. 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. ";s:7:"keyword";s:49:"all of the following are true of insurance except";s:5:"links";s:694:"Turquoise Bay Resort Day Pass,
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