D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. A mutual insurer has no stock, and is owned by the policyholders. $ cant exceed indebtness. d) Making claims payments which clearly indicate under which coverage payment has been made. The failure to disclose known facts is what? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). d. The total of all cost sheets completed during the month is $628,880.00. Something of value is a __________________. Which of the following is a physical hazard? \end{aligned} 3)Family Policy(Limited but all fam members paid) 2)Foreign Insurer (d) free look provision. 3. Prepare a pie chart of on-time delivery performance for last month. cheating. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. A whole life insurance policy is exchanged for a Universal life insurance policy. B. The NAAR for a life insurance policy is the difference between the a) The policy can be converted to term coverage. The corporation also helps detect and prevent insurer impairments. D. The face amount remains the same throughout the life of the policy. -assignor=assignee 4. b. D. The benefit is received tax free. d) Tax-deductible. a) Payor rider. c) To protect the policyowner I. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. -guaranteed/fixed/level payment, -Immediate "annuitization phase" C. Waiver Permanent Insurance have 3 words in common, what are they? The money in a savings account Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. 1)cont. &\begin{array}{lr|lr} \hline & \text { Jul 1 } & \begin{array}{r} Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. You cannot sell a variable policy without what? Universal Life is also known as two things what are they? James purchased yearly renewable term insurance. d) Decreases annually. Individuals covered under the policy received a certificate of insurance. Which of the following is NOT an example of a business use of Life Insurance? ~~~\text{Indirect labor cost}&28,000\\ (a) capital retention approach c. continuous premium whole life Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". What are the permanent working capital needs of your company? -immediately considered fully paid up 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. Jul3125,500\begin{aligned} She meets the definition of total disability under Social Security. Which of the following would provide an underwriter with information concerning an applicant's health history? (b) II only A person who negotiates insurance contracts on behalf of an insured. -kids till 21 It requires evidence of insurability for renewal. Type I rooms do not have wireless Internet access and are not available for the Business rental class. -receiving dividends(when declared) 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 statements about universal life insurance is true? An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past D) They must be signed by both the Producer and the applicant. Mutual life policy. 3)Consideration A. 2) form of interest sensitive life insurance(current market conditions influence the cash value) 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. 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. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. ADD( Accidental death and dismemberment??? The following information is taken from the records of Hammond on November 30 of the current year. d) All of the above. The remaining amounts should be charged to selling and administrative activities. Which of the following is a financial rating service? A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. -But pays you interest, 1)Fixed annuity a) Aleatory C) Completing pre-licensing training. Tom and Nancy Boyle provide financial support for their two children. Limited-Pay Life & Single-Premium Policies? Insurance companies can charge an interest rate based on the policyowner's credit report. Signed waiver of premium Insurance is an important tool to manage risks, but often unavailable to poorer households. A whole life insurance policy is exchanged for a term insurance policy. Weiss and Fitch are two of these services, although there are more. What is the purpose of a suicide provision within a life insurance policy? 3. \textbf{EMPIRE COMPANY}\\ B. -The insurance dept. \hline 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. What type of policy does the insured most likely have? IRS classification of a policy that is overfunded? 1)tax qualified plans 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? The cash value of availability to the policyowner On DUE DATE. d) Performing reviews of insured's coverage. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights An__________ represents the insurer. The concept that the insured should not profit from an insurance transaction is called what? B. e. The total of costs recorded on all sales invoices for the month is$654,052.00. An insured is driving her automobile and strikes a large pothole that . Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. The policy is a contract of adhesion. \end{aligned} (d) Premiums increase at an increasing rate upon renewal. The applicants(policy owner) -paying for certain time and stop. (c) The number of times the coverage can be renewed is limited. Correct: A. B. -Can't lose value 3)defined benefit plans D. Speculative Risk An annuity is exchanged for another annuity. c) Whole Life 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? Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. All of the other statements are true. Department of Defense C. Independent rating services evaluate and rate the financial ability of insurance companies The parties in the insurance contract consist of whom? Which term describes the probability of a loss? Increasing term 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} (d) They remain level. Which kind of agent enters into agreements with more than one insurer? An agent has authority to do all of the following, except: A. Countersign insurance contracts The benefit is subject to the exclusionary rule d) Blackout approach. d) Policy dividends. The policy's cash value grows as the investments grow. All of the following statements about the settlement of a claim are true EXCEPT. b) Policyholder Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? A corporation is the owner and beneficiary of the key person life policy. D) Obtaining a bachelor's degree. Appoint a solicitor as his or her representative D. Viatical settlement. \end{array} Concerning insurance, the definition of a fiduciary is \end{array} What is NOT invested in the stock market but pays you interest? insurable interest must exist. (receive dividends & the right to vote). Most policies can be renewed for additional periods without evidence of insurability. Various life insurance programs for people who served in the military are called ______________? C. It's a decreasing term insurance. \end{array} What are the two options in death benefit options? An insurer that is incorporated in the same state that they are doing business in is a_____________.? \text{ ???? } An underwriter will consider each of the following factors when evaluating a risk, except: A. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ B. B. 1)Whole Life Social Security is designed to provide a base of economic security B. &\begin{array}{l|lr} The correct answer is: The premium decreases to zero by the end of the policy period. D. Concealment ~~~\text{Direct labor cost}&190,000\\ b) 10% for early withdrawal 2) Transferring the risk The total of all requisitions of direct materials issued during the month is $252,230.00. Correct: B. 1) Conditional Reciept d) Primary and secondary beneficiary designations. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 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. (d) indeterminate-premium whole life. The correct answer is: Maggie's Piano Studio with 1 employee. d) Graded Premium. Joe, Larry, and Curly own a small business. (a) universal life insurance. &\text { Inventory }\\ 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? C. Hazards The shifting of risk of loss to a larger homogeneous group is known as what? d) Limited pay. Hospital bills of the key employee D. The flexible premium. 1) premium schedule differ from whole life (4), 1)monthly Insurance producers must ensure that contracts they recommend are in the best interest of the insured. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Correct: B. An insurer that was incorporated in a different state that it is doing business in. (c) face amount of the policy and the legal reserve. (b) tax-free exchange provision c) Comparisons with similar policies The 7 paytest is used to determine if a policy is a _______? d) Buyer's Guide. 1)absolute assignment-all rights are assigned 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 &\begin{array}{lr|rr} When an agent collects the initial premium from the applicant, the agent should issue the applicant 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? D. Premiums paid are deductible as a business expense. 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). A Contract that binds only one party to future performance, is a (n): A. What is a statement in the application guaranteed true in all respects? 1) insured gets higher amount B. 3)mortality charge. Nature of risk 1)premium payment Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. (b) The face amount of the policy is paid if the insured lives to age 65. 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? The policy is a conditional contract Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. 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. c) Policy loans are taxable distributions. 2)APS=medical records Which of the following best describes a surplus lines broker? Insurance transfers risk but it does not__________ risk. C. Risk An applicant is denied insurance because of information found on a consumer report. (c) both I & II (d) neither I or II. d. falsely believing that a spouse has been A _______ __ is the additional premium needed to get covered with high or substandard risk. CPI (consumer price index) without evidence. & &&\textbf{ Quarter } \\ A. Appoint a solicitor as his or her representative b) An agent offers to share his commission with a policyholder. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. (economy). Which of the following is true regarding the beneficiary designation of the former spouse. C. Consideration D. Aleatory contract Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. (a) Interest is credited monthly to a policy's cash value. (b) They increase at a decreasing rate. (c) both I & II (d) neither I or II, Diane is a single parent. a. -cash value can lose value. \end{array} Correct: B. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. See Page 1. (c) both I and II * 50% is paid When does the grace period begin and how long is it? C. The policy is an aleatory contract c) An agent offers tickets to a baseball game as an inducement to buy insurance. Question: 55. C. Medical Background 1)Level 5)coverage begins Upon policy delivery, the producer may be required to obtain any of the following EXCEPT S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. In this particular instance the applicant did not commit intentional fraud. Insurance is considered a transfer of risk. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? (6). Cash value is the same as ___________ when the policy matures. 3)increase the length of coverage Non-Participating (stock) Life Insurance Policy. Get more out of your subscription* Access to over 100 million course-specific study resources B. IRS has no jurisdiction also known as acceptance. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). A life insurance license. The death benefit varies according to investment experience. What are some of the questions asked on the application to determine the premium and risk classification of the insured? b) Failure to promptly settle a claim when liability has been clearly established A securities license. _________ is a determination that a statement made as a warranty, or true. (c) face amount of the policy and the legal reserve. Correct: A. a) Material change The face amount decreases as the amount owed on the mortgage decreases. B) The parent is responsible for the premium. (d) Most policies have a CV that is refunded when coverage ceases. 2)people under the influence of drugs or alcohol Correct: A.A peril. If the insurance carried is less than required, the insurance may not cover the whole loss. b. it frequently includes coverage for losses due to casualty and theft. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? A policy summary B. Insureds current and future income Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? B. The minimum FREE LOOK period is how many days? 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? It does not include breach of contract. (a) present value of future benefits and the present value of future premiums. A. 3) type of plan they applied for. (must exist at the time of application). If applicant is not the insured- then insureds signature is required -age 100. Correct: D. Concealment. Jul3119,500\begin{aligned} 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? 2)Legal Purpose The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. c. If a change in the application is necessary what is required? What adds coverage and modifies coverage? Represent the insured's interest C. group credit life insurance does not build cash values. All of the following are required signatures on a life insurance application EXCEPT. There is a limit for a withdrawal and the insurer charges a fee. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? AccountspayableJul1Jul3114,500??? ____________ is a statement that is true to the best of the persons knowledge that is making the statement. (a) limited-payment whole life insurance b. Most insurance policies contain a specific limit that an insurer will pay for a single claim. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ 3) policy builds cash-value C. Application b) Outline of coverage D) Insurance covers intentional losses as well as unintentional. When a policy is contributory how much is paid? A producer wishing to appeal the final order of the commissioner would appeal to???? D. Concealment a) Juvenile Life Renew policy holder has an option- THE INSURER DOES NOT. C. Department of State D) Obtaining a bachelor's degree. The Boyle family can be described as a 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. Costs of training a replacement The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. I. Estimated direct labor costs for next year are$440,000.00. 1) preferred-low See Answer. Which method makes the most sense for her to employ? Whole life policy. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. c) Increases annually. Which of the following is the basic source of information used by the company in the risk selection process? O c. The policyowner has the option of investing the cash value in several investment accounts. A key person insurance policy can pay for which of the following? c) Counselor &\text { Accounts payable }\\ A. 2)standard-average 1. DONT PICK IT!!!!!! To sell variable insurance what must you have? B. 2)FCRA(fair credit reporting act) checks MIB report. Reinsurance has 2 types of policys, what are they? 3) Retaining the risk. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 1)physical exam C. Concealment -7 pay test is used to determine If a policy is a MEC. obituary notices lancashire,