A. 1. \end{aligned} 1. \end{array} What characteristic must an annuity have if it is used to accumulate funds in an IRA? Exclusions always exist, and there is a reason for each one. C. Application It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. b. d) The Medical Information Bureau. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. The policy is a contract of adhesion. \text { Type II } & \$ 20 & \$ 30 & \$ 40 B. this insurance is often written in connection with automobile loans. the application is used at the primary source of info. A FINRA registration. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same b) To deter the policyowner from committing suicide Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. a) Accumulated at interest Daycare is considered to be among these expenses. B. Nonadmitted The corporation also helps detect and prevent insurer impairments. All of the following are true regarding life insurance illustrations EXCEPT. \hline & \text { Jul 1 } & 55,000 \\ Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? 1)Level Explain your answer. 2) profits are returned as dividends A __________ represents the insured. Which of the following statements is not correct regarding rates and premiums? The insured agrees to maintain insurance equal to some specified percentage of the value of the property. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . B) They illustrate the nonguaranteed elements of the policy. 3) Retaining the risk. -Not a true insurance company a) Lump-sum approach 2)Decreasing term(premium is low) declining face value The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. ? Can term insurance be both renewable and convertible? C. Certain Risk 2) form of interest sensitive life insurance(current market conditions influence the cash value) Modification to a policy is a _______________? She has limited income and significant life insurance needs. Compensating executives -receiving dividends(when declared) (a) I only D. Represent the insured's interest Whoso. \end{aligned} B) The plan is funded by permanent insurance only. c) Fixed premium The policy is a conditional contract 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. C. Loss of personal income D. Premiums are tax deductible as a business expense, B. c. Premiums may be raised at renewal d. Group term insurance may cover the . A key person insurance policy can pay for which of the following? 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? Medical exams provide information on current health. Which method makes the most sense for her to employ? 3)Increasing term adds face value. Who is not a party to the contract and receives the benefits when the insured dies? 1)premium payment d) 15 years. -marriage What are the temporary needs? c) Conditional (c) They decrease at a constant rate. \text{Sales revenue}&&\$780,000\\ (b) face amount of the policy and the total premiums that have been paid. B. Insureds current and future income 4. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. It is used to pay off the balance on the mortgage. (b) Cash value accumulation is slow to moderate. In order for the contract or policy to be valid or legal? D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 1) Conditional Reciept C. Solicit applications on the insurer's behalf The concept that the insured should not profit from an insurance transaction is called what? & \text{ ???? } What must exist at the time of the application? Participating policy. c) Increases annually. 2)explain any ratings good health 2)face amount is set A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. 3)certified public accountants, Is insurance that is provided by the Federal or State government d) Graded Premium. 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) Low-income individuals and families All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. An annuity whose based on the stock market index? \end{array} \hline \text { Jul 31 } & 17,000 When an applicant pays the initial premium the agent will give them a what? S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. Conditional contract means the policy holder does what? A. (b) Face amount decreases during the policy period, but premiums remain level. A monthly deduction is made from a policy's cash value for the cost of insurance protection. Which of the following would provide an underwriter with information concerning an applicant's health history? Difference between Universal Life Insurance and Whole Life Insurance? -pays an additional death benefit if the insured dies from an accident when the applicant/owner is not the insured-3rd party In this case, the applicant will most likely need to fill out a Statement of Good Health. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ All of the following statements are TRUE concerning Debtor Groups EXCEPT c) Counselor 2)administered charge \end{aligned} 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). Their premiums are lower 1. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. c) Variable Premium d) Tax-deductible. -The insurer would pay the face amount of the policy minus the past due premium. &\begin{array}{lr|lr} (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. c. Using the payback period, which project should Bill choose? -ages 25,28,34,37,40 All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. What are some of the questions asked on the application to determine the premium and risk classification of the insured? If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. Who gets $$money when the policy holder dies? A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? C. Payment of premium D. The policy is a bilateral contract An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Correct: C. Unilateral contract. c) Misrepresentation C. Conditional contract Out of 20 yr or 30 yr which policy is less expensive? 4) Joint-Life policy(business part) Insurance policy of 2 or more Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? \hline & \text { Jul 1 } & \begin{array}{r} She meets the definition of total disability under Social Security. (d) free look provision. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. ? (a) Evidence of insurability is not required to renew the coverage. . b) Promptly forwarding premiums to the insurance company (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. (b) They increase at a decreasing rate. Whats the cheapest type of permanent insurance? A) loss reserves 2. b. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles Insurers use this law in order to predict certain types of losses and set appropriate premiums. 1)policy owner can increase/decrease/ or skip premium payments Pro rata liability applies. All of the other statements are true. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? C) purchasing family term insurance. It is a type of tort. The purpose of an estate clearance fund is to pay all of the following EXCEPT. b) The agent's report The Terrorism Risk Insurance Program is administered by which of the following Federal entities? 2)FCRA(fair credit reporting act) checks MIB report. Premiums are not tax deductible as a business expense The insurer issues the policy and learns of his history one year later. Jul313,000\begin{aligned} -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? In this particular instance the applicant did not commit intentional fraud. 3)premium is collected (c) both I & II (d) neither I nor II. D) the minor in a juvenile policy. When applicant is not the insured ______________ must exist. b) Unilateral 3) policy builds cash-value 5)Explain when coverage begins AccountspayableJul1Jul3114,500??? A. All of the following statements about term insurance are true EXCEPT. c) Smaller. It is used to help adequacy and equity in rates. The face amount decreases as the amount owed on the mortgage decreases. B. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. ~~~\text{Advertising expense}&90,000\\ (c) The number of times the coverage can be renewed is limited. D. Department of Treasury 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. B. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. A Contract that binds only one party to future performance, is a (n): A. Which of the following is an example of liquidity in a life insurance contract? C. The benefit is received as taxable income A life insurance license. c. It is the failure to use ordinary care. Estimated direct labor costs for next year are$440,000.00. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. 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. 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? Are insurance company underwriters allowed to discriminate? Group life insurance is most often issued as guaranteed annual renewable term. Waive the premium if the INSURED becomes totally disabled. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. What (5) Factors for GIO & GIB. whose covered? C. Consideration \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ Instructions Terms that apply to the insurer not the applicant. The application is the basic source of information an insurer uses in the risk selection process. -car accident not in conjunction with an illness A ______ will receive unfavorable tax treatment. Their premiums are lower With a little work, an unused office area could be converted to a rental room. 14,500 \\ Which term describes the probability of a loss? A. Which of the following is NOT an example of a business use of Life Insurance? B. D. Workers compensation. 2)Increase the face value D. Effect of inflation on income over time. (a) The insurance provides protection for a temporary period of time. A corporation is the owner and beneficiary of the key person life policy. 4)Consumer report=credit, -shorter time span for paying premiums Your device, make and model. Accidental Death Benefit c) Premium accountability. Term. B. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? Being young and healthy means you can skip out on health insurance. The applicant has been shown to be a poor personal credit risk. Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. (c) human life value method A. (c) both I and II B. Which of the following is the basis for a claim against an insurance policy? Represent the insured's interest D. The benefit is received tax free. ____________ is the transfer of the right of recovery from the insured to the insurance company. 2)APS=medical records 4. D. The face amount remains the same throughout the life of the policy. 2. Which of the following is true regarding the beneficiary designation of the former spouse. A. A mutual insurance company is owned by who? \hline & \text { Jul 31 } & 19,500 The cash value available to the policyowner a. mentally counting backward from 1,0001,0001,000 Its controller resigned in October 2017. Be prepared to justify your answer. C. Whole life \text{ ???? } 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? 2)no cash-value Permanent Insurance have 3 words in common, what are they? c) Comparisons with similar policies After Alex has made 20 premium payments, his life insurance policy is considered a) An agent offers the use of his lake house to person as an inducement to buy. Waiver of Premium- What happens to the insurer? The applicant accepts the invitation by paying the ___________. An insured owns a life insurance policy. (c) two-income earner family. -its a rider 2. (b) Prepare a correct income statement for October 2017. The insurer that is transferring the risk to another company is called the ____________ __________. A. -If the insured dies, the policy payed out the PRINCIPAL SUM (b) tax-free exchange provision D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. 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? \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ c) Whole Life . All of the following statements about the characteristics of Social Security are true EXCEPT A. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. All of the following are true of negligence, except: a. 2) Transferring the risk When the application is submitted without the premium its considered an invitation for the insurer to make an offer. d) All of the above. Round Trees management makes a forecast of the demand by rental class for each night in the future. An agent has authority to do all of the following, except: A. Countersign insurance contracts A. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} O d. (c) PV of the family's share of a deceased breadwinner's future earnings. d) The policy can be reinstated by paying back all policy loans and premiums. All of the following information about a customer must be used in determining annuity suitability EXCEPT A. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? Endowments means policy is what(2) things? What is an exchange of a whole entire life policy for another? (a) blended family. Economics questions and answers. 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. Mutual life policy. 1)Statement of continued good health What are the permanent working capital needs of your company? \end{array} Costs of training a replacement (2), 1)HIPPA &\begin{array}{r|lr} Which of the following about yearly renewable term insurance is true? A. \hline \text { Jul 31 } & 3,000 3. Which of the following statements concerning buy-sell agreements is true? What is the term for a cause of loss, such as the theft of a car? D. The ratings are available to the public Which of the following best describes a surplus lines broker? If someone dies within the Grace period, what happens? also known as acceptance. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. Most agents try to collect the initial premium for submission with the application. The total of all requisitions of indirect materials issued during the month is$20,170.00. Which of the following best illustrates a C) They must contain a warning that actual results may vary. The cost of insurance protection is referred to as what? and is NOT a party to the contract. D. Agents report. If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? A. Joe, Larry, and Curly own a small business. C. Hazards D. Gender. B. B. Which of the following statements about a life insurance policy is (are) true? Use the indirect method. Which nonforfeiture option provides coverage for the longest period of time? b. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. A. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? (c) variable life insurance. C. The insured may retain part of a risk through deductibles. C. Premiums are determined by age sex and occupation of each individuals certificate holder. b) Failure to promptly settle a claim when liability has been clearly established Most policies can be renewed for additional periods without evidence of insurability. d) Accumulations are tax deferred. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. D. Premiums paid are deductible as a business expense. 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. What are the two options in death benefit options? All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. ADD( Accidental death and dismemberment??? a) More active. -pay for certain time and stop Executive office Business partners have an insurable interest in each other Funding against financial loss caused by the death of a key employee Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Correct: B. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . Which kind of agent enters into agreements with more than one insurer? The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. A policy summary usually includes all the listed information, and must be delivered along with a new policy. (receive dividends & the right to vote). (c) term insurance Suitability What else must he include? 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. A. A. _________ is a determination that a statement made as a warranty, or true. What happens when a policy is surrendered for its cash value? b) Coverage ends and the policy cannot be reinstated. Type I rooms do not have wireless Internet access and are not available for the Business rental class. b) Fixed income -paying for certain time and stop. A whole life insurance policy is exchanged for a term insurance policy. \hline \text { Jul 1 } & \begin{array}{r} A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called Misrepresentation, Concealment and Deceit are all examples of what? Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. The employer is the owner . (b) Any withdrawal of cash value reduces the death benefit. c) The inspection report 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. All The statements made on the application are called ______? ____________ insurer is not a type of insurer. The insurance provides protection for a specified period of time. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. b) Fluctuates. Statement of good health The ___________ controls all rights of the contract. (a) universal life insurance. 4)annual, Everytime you have a payment due. D. Delivery receipt. ? All of the following statements are true regarding mortgage protection insurance EXCEPT. The parties in the insurance contract consist of whom? d) 50% tax on the amount not distributed as required. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. Appoint a solicitor as his or her representative An aleatory contract is a contract where the monetary values of the parties performances are________________. Jul3117,000\begin{aligned} -The insurance dept. d) The insurer will sue the insured for committing fraud. When a policy is non-contributory how much is paid? Is claim still paid if there is a misstatement of age or sex? The applicant's medical background is addressed in Part 2 - Medical Information. D) the minor in a juvenile policy. 2)people under the influence of drugs or alcohol a) A retail clerk.
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all of the following are true of insurance except