all of the following are true of insurance except

The total of all requisitions of indirect materials issued during the month is$20,170.00. c) Accelerated benefit rider. -receiving dividends(when declared) All of the following are true of key person insurance EXCEPT ) The key employee is the insured. Correct: A. \hline & \text { Jul 31 } & 58,000 A. \end{array} How does having children affect the decisions that couples must make when considering a divorce? -Voting. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. &\text { Accounts receivable }\\ Agent Sam is using the human life value approach to assess Mary's life insurance needs. c) Denying coverage after a reasonable investigation has been conducted A SEC registration. B. Beneficiarys age This form of life insurance has fixed premiums and the cash value is not guaranteed. still matures at age 100, -premium is paid off at one time The shifting of risk of loss to a larger homogeneous group is known as what? Hammond Corporation manufactures televisions. The cost of a living rider is calculated by what? D) An agent's report and inspection report provides personal information. Insurance is not designed to cover _____________ losses. B. \end{array} \\ b) Failure to promptly settle a claim when liability has been clearly established Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 1. CashJul1Jul315,500???? B. -greater potential to grow the cash value but there is no guarantee A person cannot buy insurance unless that person is in a position to suffer a financial loss. What is the purpose of a suicide provision within a life insurance policy? AccountspayableJul1Jul3114,500??? 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. (b) Any withdrawal of cash value reduces the death benefit. c) Increases annually. All renewable term policies are accepted without__________ and only with_____ collected. 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? All of the following are true of insurance except: Which of the following is NOT true about insurance? b. Which of the following statements about endowment policies is true? ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ \end{aligned} A. a) A medical examination 4. -immediately considered fully paid up B. Buy-Sell Agreements pay in the event of a medical emergency Which of the following does not constitute the consideration in the insurance transaction? a) More active. All of the following statements about universal life insurance are true EXCEPT Receipt Correct: C. Concealment, A. Participating policy. C. A surplus lines broker accepts business only from non- resident agents \underline{\hspace{40pt}}. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. (a) universal life insurance. What are the temporary needs? Arrest History. 1. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Term life insurance provides pure death protection. 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. The applicant has been shown to be a poor personal credit risk. 3) Retaining the risk. &&\\ Is claim still paid if there is a misstatement of age or sex? Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. c) Premium accountability. A. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. C. Concealment D) adding cost of living coverage. All of the following statements regarding contracts of indemnity are true EXCEPT a. An agent and an applicant for a life insurance policy fill out and sign the application. Chapter 11 - Life Insurance. a. whole life paid at 65 \hline \text { Jul 31 } & 3,000 She meets the definition of total disability under Social Security. An Applicant inaccurately representing information on the application is guilty of: A. Modification to a policy is a _______________? D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. D) Obtaining a bachelor's degree. It requires evidence of insurability for renewal. D. Agents report. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? O d. -policy holder adheres to it B. (6). 3) Equity-Index annuity. (b) single-parent family. B. a) Juvenile Life Which of the following statements is not correct regarding rates and premiums? 3)they provide insurance to members. a) Payor rider. -Prepays portion of face amount if diagnosed with terminal illness. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. Represent the insured's interest D. Gender. What are (4) characteristics of permanent insurance? The failure to disclose known facts is what? 2)non-qualified plans Correct: A.A peril. d) Military personnel. &\text { Retained Earnings }\\ The correct answer is: Premiums are typically paid by the lender. 5)coverage begins What kind of penalty would the IRA owner pay? Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. a) Agent's report -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded IRS classification of a policy that is overfunded? Executive office All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. c. Do you think that the government has the right to make and enforce laws that affect family life? D. Speculative Risk All of the following statements about the characteristics of Social Security are true EXCEPT A. C. Premiums are determined by age sex and occupation of each individuals certificate holder. d) The insurer will sue the insured for committing fraud. By William Lb Qtjetjx, Author of . C. The death benefit paid to the beneficiary Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. a) The policyholders or stockowners of the company 1) a policyholder votes on the Board of Directors Statement of good health ? 3. ? don't pick binding receipt at all on test. b. Which method makes the most sense for her to employ? -has cash value invested in the stock market a) To limit the insurer's liability after the 2 year waiting period 1) All requirements are met Which of the following is the basis for a claim against an insurance policy? B. b) Reduced paid-up b) A producer who handles insurer funds in a trust capacity. B. A corporation is the owner and beneficiary of the key person life policy. Predicted needs of the family after the insured's death are used in the needs approach. -Follows all conditions of contract & pays premium, -insurer says how policy works One sided contract is a ______________ contract. The policy does not go into effect until the premium has been collected. 3) Ordinary. Economics questions and answers. c) Guides describing company financial integrity Which of the following is the basic source of information used by the company in the risk selection process? Which of the following is a financial rating service? The applicants(policy owner) -and the right to vote. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution b) The elderly b) Conditional receipt This type of life insurance is called Terms that apply to the insurer not the applicant. Endowments means policy is what(2) things? A securities license. James purchased yearly renewable term insurance. Appoint a solicitor as his or her representative All of the following characterize term life insurance, EXCEPT: Select one: a. c. Premiums may be raised at renewal d. Group term insurance may cover the . &\text { Inventory }\\ D. Accident (b) They increase at a decreasing rate. The policy is a contract of adhesion Jul3117,000\begin{aligned} Adverse selection is well controlled. Explain your answer. \hline \text { Jul 1 } & \begin{array}{r} A monthly deduction is made from a policy's cash value for the cost of insurance protection. Instructions B. Aleatory contract C. Consideration The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. Estate conservation d) Decreases annually. (Choose from the following options) Which of the following would provide an underwriter with information concerning an applicant's health history? What type of insurer has no capital stock? b. A. signed waiver of premium (c) human life value method Who assumes control over an insurance company's funds and management if it becomes insolvent? D. Effect of inflation on income over time. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. D. Workers compensation. Rates are considered inadequate when they do not cover projected losses and expenses. 3) Increasing Term. d) Living need rider. (c) both I and II Cash values can be borrowed at any time \end{array} Predicted needs of the family after the insured's death (b) II only Policyholders In order for the contract or policy to be valid or legal? &\begin{array}{r|lr} Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? c) Conditional Pure Risk. When a policy is contributory how much is paid? What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 3)certified public accountants, Is insurance that is provided by the Federal or State government 2)no cash-value B. B. C. Tax Status Correct: C. Unilateral contract. considers Lloyds of London an Alien insurer All of the following statements about ordinary life insurance are true EXCEPT. 4) Joint-Life policy(business part) Insurance policy of 2 or more d) Loss. b. persistent fear of germs Hazard Fraud C) Completing pre-licensing training. &\begin{array}{cr|} What contract characteristic does this describe? \end{array} \\ 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. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles To sell variable life insurance policies, an agent must receive all of the following EXCEPT Buy-sell agreements are normally funded with a life insurance policy. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 3)riders & exclusions D. Premiums paid are deductible as a business expense. D. Breach of warranty ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" 2) Transferring the risk The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. A key person insurance policy can pay for which of the following? It is a type of tort. C. Premiums are tax deductible by the key employee (b) Face amount decreases during the policy period, but premiums remain level. (a) I only (b) II only Which nonforfeiture option provides coverage for the longest period of time? Which of the following statements concerning buy-sell agreements is true? 1) Avoiding the risk a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. \end{array} 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. 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. -the premiums are paid for a limited time only. 2. Hospital bills of the key employee Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". Mutual life policy. They keep a high percentage of any interest earned on their policies C. Buy-Sell agreements are normally funded with a life insurance policy He would also like to invest in a mutual fund. (2), 1)HIPPA Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. If a change in the application is necessary what is required? All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. c) Variable Premium (c) both I & II (d) neither I or II. 3)increase the length of coverage 2. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ -kids till 21 C. Conditional contract C) the proposed insured. Jul313,000\begin{aligned} Get more out of your subscription* Access to over 100 million course-specific study resources Which kind of agent enters into agreements with more than one insurer? All of the following are true of insurance EXCEPT It transfers risk. If the corporation collects the policy benefit, then Which of the following is NOT an allowable 1035 exchange? Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? A policy summary usually includes all the listed information, and must be delivered along with a new policy. An Insurance broker is responsible for what? 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 statements about universal life insurance is true? The policy is issued for one year and may be renewed annually with evidence of insurability. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. b) Cost of living rider. _________ is a determination that a statement made as a warranty, or true. -usually mutual fund security The applicant accepts the invitation by paying the ___________. According to the entire contract provision, what document must be made part of the insurance policy? -guarantee a stream of income to the person purchasing it known as the annuitant. a) Types of mutual companies 1)Domestic Insurer The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} Which of the following is an example of an unfair claims settlement practice? To sell variable insurance what must you have? 17,000, InventoryJul122,000???? Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. C. A husband or wife has an insurable interest in their spouse In a car accident dealing with ADB who covers the passenger? 3)Increasing term adds face value. c) 15% for early withdrawal 2)Explain and collect any ratings B. B. *Both not taxable. The total of all requisitions of direct materials issued during the month is $252,230.00. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. \text{Inventory} & 201 & 505 & 905 & 52 \\ C. Department of State Claim is still paid with an adjustment to the benefits. A. D. Viatical settlement. Question: 55. A ____ contract requires that both parties perform certain duties. D) Insurance covers intentional losses as well as unintentional. c) Needs approach There is no limitation on the number of key employee plans in force at any one time. The CAS number shown in an entry is typically . The correct answer is: The premium decreases to zero by the end of the policy period. 2)explain any ratings 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} The applicant's medical background is addressed in Part 2 - Medical Information. ~~~\text{Raw materials purchases}&\$264,000\\ d) 50% tax on the amount not distributed as required. d. It does not require a duty to be owed. 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. Occupation Hammond estimates that it will manufacture 5,000 televisions next year. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. Statements in the application that are guaranteed true but later found to be false may result in what? \hline & \text { Jul 1 } & \begin{array}{r} All of the following statements concerning coinsurance are true, EXCEPT . Term-Life policy has what 3 characteristics? B) The parent is responsible for the premium. Waive the premium if the INSURED becomes totally disabled. -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? What happens when there is a Misstatement of age or sex? 1)Whole Life A whole life insurance policy is exchanged for a Universal life insurance policy. Why do most states have a waiting period for couples applying for marriage licenses? 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? Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. d) The Guaranty Corporation. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. B. D. Funding against general company financial loss -If the insured dies, the policy payed out the PRINCIPAL SUM D. They can decide when to pay their monthly premiums. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? 1) the premium amount c) Extended term Rebating is an unfair trade practice and is regulated by law. 1 / 25. Is interest always gained in Universal Life Policy? A peril Accelerated Living Benefit/Accelerated Death Benefit? -Take it or leave it contract Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Prior to October 2017, the company had been profitable every month. Cash values are available in whole life policies. Daycare is considered to be among these expenses. Appoint a solicitor as his or her representative C. They can borrow higher amounts off of their policies C. Unilateral contract & &&\textbf{ Quarter } \\ ____________ is a statement that is true to the best of the persons knowledge that is making the statement. 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? Conviction of a felony involving moral turpitude. (d) Premiums increase at an increasing rate upon renewal. What is the primary source of info for the underwriting department to determine insurability? B) the applicant. The designation will be void/. \\ What (5) Factors for GIO & GIB. whose covered? A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. D) the minor in a juvenile policy. Increasing term Rating codes are assigned to show financial strength or weakness of each company rated When a policy is non-contributory how much is paid? (d) sandwiched family. Renew policy holder has an option- THE INSURER DOES NOT. may not be altered by an agent and must clearly state that it is not part of the contract. Funding against financial loss caused by the death of a key employee The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? The issuance of a _________ is the result of the acceptance of an offer. \end{aligned} An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? B. A. C. Insured's annual expenses (2), The current market will influence the cash value * 50% is paid b) Promptly forwarding premiums to the insurance company A. Correct: C. Consideration. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 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? An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. 2)the face amount When applicant is not the insured ______________ must exist. the underwriting process is approved for: (d) Most policies have a CV that is refunded when coverage ceases. c) Copy of the original application C) purchasing family term insurance. D. An individual has an insurable interest in her or her own life. -A Mec will receive unfavorable tax treatment 2)APS=medical records -marriage Cash value is the same as ___________ when the policy matures. d) The Medical Information Bureau. The __________ branch of the state government influences public policy regarding insurance laws. The Boyle family can be described as a All of the following statement regarding credit life insurance are true, except: A. credit life insurance may be written on either and individual or group basis. 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? Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. e. The total of costs recorded on all sales invoices for the month is$654,052.00. d) Buyer's Guide. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} c. continuous premium whole life a) The policy can be converted to term coverage. b. All of the following statements about term insurance are true EXCEPT. What type of interest does universal life have? Pro rata liability applies. AKA-payout phase. 4)settlement options, 1)stand alone policy 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. Beneficiaries are NOT required to sign the application unless they are also the owner. -it pays the double indemnity, 1)accident occurs, person must die within 90 days b. it frequently includes coverage for losses due to casualty and theft. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. A. A. RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. Universal Life is also known as two things what are they? Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date It has cash value that is invested into the stock market through mutual funds/securities. D. Financial Experience. A mutual insurance company does not have what? Contract or form of ownership is a ______________? \hline && \text { Jul 1 } & 65,000 \\ Domestic Insurer IN WHITE RAIMENT. -its a rider The primary purpose of buying an annuity is? All of the following are true of negligence, except: 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. c) Misrepresentation All of the following are characteristics of group life insurance EXCEPT. 2)Decreasing Term d) Making claims payments which clearly indicate under which coverage payment has been made. 4. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. An insured becomes disabled at age 22 and can no longer work. An annuity whose based on the stock market index? All of the following are required signatures on a life insurance application EXCEPT. Newborns after how many days become covered in a child rider? c) Counselor Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees.

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