b) Adjustable life D. Effect of inflation on income over time. It is a type of tort. 2)explain any ratings B) Fiduciary refers to a position of trust. A. Cash value is invested in the stock market. (d) annual premium and the annual policy dividend. The debtor does not have an insurable interest in the life of the lender. A. 1) Conditional Reciept 2) standard risk 4. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. -Not invested in stock market d) All of the above. Represent the insured's interest I. b. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. C) purchasing family term insurance. Business partners have an insurable interest in each other Compute DVDs net cash provided by (used for) operating activities during July. It is the specific cause of loss. The policyowner has a variety of options for investment of the cash value. The face amount decreases as the amount owed on the mortgage decreases. -paying for certain time and stop. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. (6). The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. B. Insureds current and future income a) An agent offers the use of his lake house to person as an inducement to buy. Non-Participating (stock) Life Insurance Policy. Accelerated Living Benefit/Accelerated Death Benefit? C. Certain Risk Which of the following is a physical hazard? Which of the following is the basis for a claim against an insurance policy? 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. (a) They increase at an increasing rate. b) Index used by stock companies (c) both I & II (d) neither I or II. Which nonforfeiture option provides coverage for the longest period of time? c) Misrepresentation 1)increase cash value c. Manufacturing expense accounts and their balances for the month are as follows: DepreciationExpense-FactoryEquipment$5,770.24MiscellaneousExpense-Factory$13,780.48DepreciationExpense-Building2,822.40PayrollTaxesExpense-Factory43,736.00Heat,Light,andPowerExpense9,055.20PropertyTaxExpense-Factory6,088.32InsuranceExpense-Factory1,505.28SuppliesExpense-Factory18,063.36\begin{array}{lrlrr}\text { Depreciation Expense-Factory Equipment } & \$ 5,770.24 & \text { Miscellaneous Expense-Factory } & \$ 13,780.48 \\ \text { Depreciation Expense-Building } & 2,822.40 & \text { Payroll Taxes Expense-Factory } & 43,736.00 \\ \text { Heat, Light, and Power Expense } & 9,055.20 & \text { Property Tax Expense-Factory } & 6,088.32 \\ \text { Insurance Expense-Factory } & 1,505.28 & \text { Supplies Expense-Factory } & 18,063.36\end{array} ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} D. Department of Treasury A person cannot buy insurance unless that person is in a position to suffer a financial loss. . A. Correct: A.A peril. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. exclusions: when the accident occurs within an illness,disease, or mental infirmity. What are the (5) Factors considered with combination policies Who and What are they? D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? C. Tax Status Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. A. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. C. Buy-Sell agreements are normally funded with a life insurance policy \underline{\hspace{40pt}}. Correct: C. Consideration. Misrepresentation, Concealment and Deceit are all examples of what? 5)Survivorship Life Policy (policy holder pays themselves). The corporation also helps detect and prevent insurer impairments. An insured is driving her automobile and strikes a large pothole that . -Can't lose value All of the following characterize term life insurance, EXCEPT: Select one: a. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. 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? B) They illustrate the nonguaranteed elements of the policy. 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. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. b) Hazard 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. c) Smaller. The replacing company notifies the replacement company. (a) I only (b) II only (c) both I and II C. It's a decreasing term insurance. A peril A whole life insurance policy is exchanged for a Universal life insurance policy. Who appoints the state insurance regulator in many states? &\begin{array}{lr|rr} a) Indeterminate Premium (a) Evidence of insurability is not required to renew the coverage. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The benefit is subject to the exclusionary rule c) Helping insureds to file claims After Alex has made 20 premium payments, his life insurance policy is considered B. Misrepresentation 3)Minors. d) Loss. 2. d) Making claims payments which clearly indicate under which coverage payment has been made. 3)2 death benefit option B) the applicant. \hline \text { Jul 1 } & 5,500 &&\\ The ___________ controls all rights of the contract. Its controller resigned in October 2017. Involuntary Risk 1) a policyholder votes on the Board of Directors When applicant is not the insured ______________ must exist. b) Fiduciary responsibility. M327. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. b) Promptly forwarding premiums to the insurance company D) Claims result from losses by a peril insured against in an insurance policy. Which kind of agent enters into agreements with more than one insurer? 1)Statement of continued good health C. Medical Background Correct: C. Unilateral contract. 2)no cash-value All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. 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. d) The insurer will sue the insured for committing fraud. \end{array} Something of value is a __________________. Correct: A. How much life insurance should Sam advise . b. it frequently includes coverage for losses due to casualty and theft. (b) They increase at a decreasing rate. With a little work, an unused office area could be converted to a rental room. The policy is a contract of adhesion d) Contingent. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. 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. Which of the following about decreasing term insurance is true? \text { Type II } & \$ 20 & \$ 30 & \$ 40 Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. When an applicant pays the initial premium the agent will give them a what? On DUE DATE. compulsion? b. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. (b) The face amount of the policy is paid if the insured lives to age 65. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. 3)MIB=records of all previous insurances they had. -provides income for retirement Costs of training a replacement ~~~\text{Direct labor cost}&190,000\\ The policy's cash value grows as the investments grow. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? 1) mentally incompetent persons d) Paid-up option. A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. 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? 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? (must exist at the time of application). 1)absolute assignment-all rights are assigned Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Insurance is designed to cover both intentional and unintentional losses. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. d) 50% tax on the amount not distributed as required. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ &\text { Retained Earnings }\\ II. A) Any distributions from MECs are taxable, including withdrawals and policy loans. ~~~\text{Depreciation on sales equipment}&45,000\\ Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Round Tree has 100 Type I rooms and 120 Type II rooms. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? C. The death benefit paid to the beneficiary \hline & \text { Jul 31 } & 58,000 If a change in the application is necessary what is required? 4. 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. C. Concealment a) Remains level. a) Material change \end{array} \end{array} \\ C. Waiver b) Conditional receipt 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? D. Claim History ? Who is not a party to the contract and receives the benefits when the insured dies? B. The policyowner can add to a policy's cash value at any time subject to policy guidelines. b) Human life value approach 4)underwriting is complete Is claim still paid if there is a misstatement of age or sex? Insurance is designed to provide protection against which of the following? II. B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. An aleatory contract is a contract where the monetary values of the parties performances are________________. 3)semi-annual has reached its final destination and can be paid out in full. A. B. What constitutes the acceptance of an offer? A mutual insurer has no stock, and is owned by the policyholders. Various life insurance programs for people who served in the military are called ______________? She meets the definition of total disability under Social Security. D. The flexible premium. c) Disclosure rule (a) present value of future benefits and the present value of future premiums. A. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. -kids till 21 A surplus lines broker deals with direct writing companies only The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? The cash value available to the policyowner Applicant pays premium to make agreement. Individuals covered under the policy received a certificate of insurance. c. What are (4) characteristics of permanent insurance? When a policy is non-contributory how much is paid? This is called. Which of the following is the best reason to purchase life insurance rather than annuities? B. The applicants(policy owner) What are the two options in death benefit options? \end{aligned} The issuance of a binder is the result of the ___________________ of an offer. Which of the following best illustrates a What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurable? c. Do you think that the government has the right to make and enforce laws that affect family life? cash value increases while face value remains the same. 2)collateral assignment-some or only one right assigned. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? (c) Most policies can be converted to a permanent life insurance policy. Prior to October 2017, the company had been profitable every month. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. 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. 4)annual, Everytime you have a payment due. What are some of the questions asked on the application to determine the premium and risk classification of the insured? What is the primary source of info for the underwriting department to determine insurability? The policy does not go into effect until the premium has been collected. A corporation is the owner and beneficiary of the key person life policy. 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? Signed waiver of premium -assignor=assignee 3)2 Death benefits-(level/increasing) a) A retail clerk. A. B. 1) insured gets higher amount a) Using arbitration when the insured and insurer cannot reach agreement d) Primary and secondary beneficiary designations. \end{aligned} 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____________? Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. All of the following are methods of payment? Which of the following statements is not correct regarding rates and premiums? Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. 2)Legal Purpose An insurance consultant CANNOT be which type of persons? Insurance is an important tool to manage risks, but often unavailable to poorer households. Correct: A. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. c. Using the payback period, which project should Bill choose? C. Application &&\\ The applicant accepts the invitation by paying the ___________. d) Tax-deductible. Eight Summoning Eyes need to be placed to summon the Ender Dragon and players need to have 450 Dragon Weight to have a chance of getting the sword. 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? \textbf{For the Month Ended October 31, 2017}\\ B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. All of the following are required signatures on a life insurance application EXCEPT. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} C) An insurance contract must contain a copy of the original application. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. D. Reduction is a method of managing risk. -has cash value invested in the stock market One sided contract is a ______________ contract. Participating policy. Policyholders All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. The applicant has been shown to be a poor personal credit risk. AccountsreceivableJul1Jul3121,000???? Group life insurance is most often issued as guaranteed annual renewable term. (D The employer is the owner, payor and beneficiary of the policy. B. IRS has no jurisdiction 3)they provide insurance to members. Agents and producers must place business through an insurer with the lowest rated \end{aligned} D. A surplus lines broker deals with admitted carriers only Life expectancy has increased in the U.S. over the last century. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same \hline \text { Jul 31 } & 25,500 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. It requires evidence of insurability for renewal. Pertaining to insurance, what is the definition of a fiduciary responsibility? A. Which of the following statements about a life insurance policy is (are) true? Term life insurance provides pure death protection. Reinsurance has 2 types of policys, what are they? b) Failure to promptly settle a claim when liability has been clearly established Nonparticipating policy. c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. Jul313,000\begin{aligned} Only the MIB will provide information about an applicant's medical history. c. thoughts of harming a neighbor Terms that apply to the insurer not the applicant. Misappropriation or illegal withholding of the policyholder's money. O d. The death benefit varies according to investment experience. Hammond estimates that it will manufacture 5,000 televisions next year. C) They must contain a warning that actual results may vary. (b) Cash value accumulation is slow to moderate. The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. O c. The policyowner has the option of investing the cash value in several investment accounts. Daycare is considered to be among these expenses. Correct: D. Concealment. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Can a misrepresentation render the contract void if the misrepresentation is material to the risk? See Answer. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer 2)face amount is set \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ \hline && \text { Jul 1 } & 65,000 \\ Premiums are not tax deductible as a business expense c) Policy loans are taxable distributions. the underwriting process is approved for: B. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. 3)substandard risk. Appoint a solicitor as his or her representative (b) reduced. Conditional contract means the policy holder does what? 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 (d) indeterminate-premium whole life. Suitability d) Graded Premium. 4)explain policy & provisions 3) Increasing Term. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles (Choose from the following options) Newborns after how many days become covered in a child rider? All of the following statements about term insurance are true EXCEPT. There is a limit for a withdrawal and the insurer charges a fee. *The insured is diagnosed with terminal & chronicle illness Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. &\begin{array}{r|lr} the application is used at the primary source of info. B. What else must he include? b) To deter the policyowner from committing suicide 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? when the applicant/owner is not the insured-3rd party (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. D. Alien a) Consumer Privacy Act Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded (c) term insurance James purchased yearly renewable term insurance. -insured can stop paying premiums at certain age or after a period of time Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. Which of the following would provide an underwriter with information concerning an applicant's health history?
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