In this particular instance the applicant did not commit intentional fraud. A __________ represents the insured. a) A medical examination Whats the "take it or leave it contract"? 3)Family Policy(Limited but all fam members paid) -marriage d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. Concerning insurance, the definition of a fiduciary is b. The County is administered by a five-member Board of Supervisors who are elected for four-year terms Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. Any gain in the policy's cash value is . There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. B) Fiduciary refers to a position of trust. (b) Cash value accumulation is slow to moderate. 2)Decreasing term(premium is low) declining face value 3)defined benefit plans 3)Increasing term adds face value. D. The benefit is received tax free. a) Because the insured is currently not a drug user, his policy will not be affected. 1) Competent Parties All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. When an applicant pays the initial premium the agent will give them a what? B. B) They illustrate the nonguaranteed elements of the policy. A conditional or binding receipt is given when an applicant does what? (b) II only Insurance transfers risk but it does not__________ risk. C. Independent rating services evaluate and rate the financial ability of insurance companies An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? The death benefit varies according to investment experience. The money in a savings account 1) mentally incompetent persons 1)absolute assignment-all rights are assigned -cash value options 1)physical exam "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 1) Family Maintenance(breadwinner) C. A surplus lines broker accepts business only from non- resident agents c. Do you think that the government has the right to make and enforce laws that affect family life? All of the following characterize term life insurance, EXCEPT: Select one: a. 1. Steven prints a pamphlet to advertise his life insurance business. b) Index used by stock companies (a) Interest is credited monthly to a policy's cash value. The insurer issues the policy and learns of his history one year later. The policy is a contract of adhesion a) To limit the insurer's liability after the 2 year waiting period 2)not payable in conjunction. Jul313,000\begin{aligned} The companys president is concerned about the accuracy of the income statement. Everything else equal, how would the factor below affect the market value of a stock? c) 15% for early withdrawal 3. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Fraud _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ c. continuous premium whole life B. C. Application Cash values are available in whole life policies. 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 debtor has insurable interest in the life of a lender ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ ~~~\text{Advertising expense}&90,000\\ A. 3)premium is collected A person cannot buy insurance unless that person is in a position to suffer a financial loss. C. It's a decreasing term insurance. (a) The insurance provides protection for a temporary period of time. A policy summary usually includes all the listed information, and must be delivered along with a new policy. An annuity is exchanged for another annuity. Their premiums are lower Cash value is the same as ___________ when the policy matures. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. 4. How do premiums for yearly renewable term insurance change as an insured gets older? Level-increasing face value. C. A surplus lines broker deals with direct writing companies only \text{Sales revenue}&&\$780,000\\ Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? Insurance companies can charge an interest rate based on the policyowner's credit report. Correct: C. Concealment, A. (a) renewal provision D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. 3) Equity-Index annuity. \end{aligned} \hline && \text { Jul 1 } & 65,000 \\ when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Which of the following is usually true of a participating life insurance policy? C. Buy-Sell agreements are normally funded with a life insurance policy AccountsreceivableJul1Jul3121,000???? c) A person who handles assets or money belonging to others. All of the following are true of negligence, except: a. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? The applicant accepts the invitation by paying the ___________. Which of the following is NOT an example of a business use of Life Insurance? However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. B. Twisting An underwriter will consider each of the following factors when evaluating a risk, except: A. c) An agent offers tickets to a baseball game as an inducement to buy insurance. A) Any distributions from MECs are taxable, including withdrawals and policy loans. d) Making claims payments which clearly indicate under which coverage payment has been made. \textbf{EMPIRE COMPANY}\\ d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Question: 55. The insurance company may not void the insurance policy for which of the following reasons? Participating policy. Why?". Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} Dividends received by policyholders of a mutual insurer are not taxable. Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. Which method makes the most sense for her to employ? Hospital bills of the key employee It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. 1) coverage is permanent See Page 1. It requires evidence of insurability for renewal. 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. Benefits received are considered income taxable An insured is driving her automobile and strikes a large pothole that . What happens when there is a Misstatement of age or sex? 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? 1) preferred-low a) An agent offers the use of his lake house to person as an inducement to buy. Instructions He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. D) They must be signed by both the Producer and the applicant. Accelerated Living Benefit/Accelerated Death Benefit? If the insurance carried is less than required, the insurance may not cover the whole loss. b) 5 years only. 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 4. \hline \text { Jul 31 } & 3,000 D. Gender. B. IRS has no jurisdiction When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health The __________ branch of the state government influences public policy regarding insurance laws. the application is used at the primary source of info. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? A person who negotiates insurance contracts on behalf of an insured. A ______ will receive unfavorable tax treatment. What are some of the questions asked on the application to determine the premium and risk classification of the insured? c) Premium accountability. c) Helping insureds to file claims Pure Risk. D. Offer b) Failure to promptly settle a claim when liability has been clearly established C. The insured may retain part of a risk through deductibles. Who would be eligible to obtain SGLI? It is used to pay off the balance on the mortgage. A. 1. There are 2 parties of the contract- what are they? The policyowner has a variety of options for investment of the cash value. D. Effect of inflation on income over time. Now Tamara can afford whole life insurance. The policy does not go into effect until the premium has been collected. D. Agents report. An aleatory contract is a contract where the monetary values of the parties performances are________________. Who gets $$money when the policy holder dies? C. Department of State Being young and healthy means you can skip out on health insurance. Claim is still paid with an adjustment to the benefits. compulsion? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . Which of the following statements about limited-payment life insurance is true? (a) I only (b) II only 1) All requirements are met (d) paid-up. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? (c) term insurance This method of estimating . (D The employer is the owner, payor and beneficiary of the policy. database of previously life and health insurance applications. -kids till 21 II. 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. -assignor=assignee c) Increases annually. The 3 categories of private insurers site of incorporation? All of the following statements are true regarding mortgage protection insurance EXCEPT. 3) Retaining the risk. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? a) Material change WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. All The statements made on the application are called ______? b) Human life value approach C. Medical Background Insurance is designed to cover both intentional and unintentional losses. b. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. 3)Alien Insurer. Something of value is a __________________. The correct answer is: Premiums are typically paid by the lender. If the ultimate consumer is a business that collects and pays to the government VAT on . (Hint: Take a look at the Theory of Reasoned Action.). c) National Association of Insurance Commissioners &\begin{array}{lccc} *Both not taxable. A. (d) indeterminate-premium whole life. The person who receives the benefit when insured dies. One sided contract is a ______________ contract. James purchased yearly renewable term insurance. (receive dividends & the right to vote). D. Workers compensation. The 4 characteristics of a universal life policy are? Does T-Mobile Insurance Cover Water Damage? b) The agent's report (b) Any withdrawal of cash value reduces the death benefit. a) A retail clerk. a. \text{Inventory} & 201 & 505 & 905 & 52 \\ All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. A Contract that binds only one party to future performance, is a (n): A. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. A) They must be given to all Life insurance applicants. This is called. I. Which of the following statements is not correct regarding rates and premiums? c) Fixed premium The issuance of a binder is the result of the ___________________ of an offer. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. 2)people under the influence of drugs or alcohol C. Whole life b. Who assumes control over an insurance company's funds and management if it becomes insolvent? A. \end{array} The Boyle family can be described as a Which is generally true regarding insureds who have been classified as preferred risks? (c) expired. b) Fiduciary responsibility. C. Domestic AccountspayableJul1Jul3114,500??? B. D. Solicit applications on insurer's behalf (a) present value of future benefits and the present value of future premiums. The benefit is subject to the exclusionary rule c) Variable Premium When must insurable interest exist in a life insurance policy? Members are assessed to fund the corporation. still matures at age 100, -premium is paid off at one time d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. \hline \text { Jul 31 } & 25,500 2)face amount is set 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". a) Accumulated at interest An Insurance Broker is responsible for what? b) Reduced paid-up Can a misrepresentation render the contract void if the misrepresentation is material to the risk? (3), 1)bank trust officer (4), 1)monthly Which of the following about yearly renewable term insurance is true? The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. d) Primary and secondary beneficiary designations. D. Premiums are tax deductible as a business expense, B. a. mentally counting backward from 1,0001,0001,000 What contract characteristic does this describe? An insurer that was incorporated in a different state that it is doing business in. 3)mortality charge. B. A) loss reserves 2. C. Countersign insurance contracts (b) They increase at a decreasing rate. Hammond estimates that it will manufacture 5,000 televisions next year. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. 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 accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? A. 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? c. thoughts of harming a neighbor Certificate holders may convert coverage to an individual policy without evidence of insurability. C. Premiums are determined by age sex and occupation of each individuals certificate holder. -the applicant must always initial the change An agent and an applicant for a life insurance policy fill out and sign the application. . d) 15 years. 1. 3)MIB=records of all previous insurances they had. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. &\begin{array}{lr|lr} A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers ? II. It is the specific cause of loss. c) Coverage ends but the policy can be reinstated at any time. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Only the MIB will provide information about an applicant's medical history. 1)tax qualified plans What is the primary source of info used to determine insurability by the underwriting department? Their premiums are lower IN WHITE RAIMENT. If the initial premium is not paid with the application, the agent will be required to collect the premium at the time of policy delivery. Social Security is designed to provide a base of economic security B. 2)Variable annuity Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date All of the following statements about ordinary life insurance are true EXCEPT. C. Consideration d) Military personnel. c) The policy will be voided. According to the entire contract provision, what document must be made part of the insurance policy? 1) Conditional Reciept Who is responsible for making sure the application is completed properly and all necessary info is obtained? Term life insurance provides the largest amount of coverage for the lowest amount of premium. c) Extended term B) The plan is funded by permanent insurance only. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. c) To protect the policyowner Correct: A Insurance . B. 2) Transferring the risk b) An agent offers to share his commission with a policyholder. The shifting of risk of loss to a larger homogeneous group is known as what? A surplus lines broker accepts business only from non- resident agents 90-180 days. &\text { Accounts receivable }\\ 2)standard-average Rates. & \text{ ???? } What are (4) ways annuities are classified? Which of the following is a financial rating service? Alex, age 26, purchased a 20- payment whole life insurance policy. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? B) Passing examination with 75% or higher score. Department of Defense Get more out of your subscription* Access to over 100 million course-specific study resources Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. C. it is often experience-rated, with premrums based on expected losses. 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. For this amount of production, total factory overhead is estimated to be $396,000.00. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. C. Concealment Predicted needs of the family after the insured's death are used in the needs approach. A. signed waiver of premium (a) Evidence of insurability is not required to renew the coverage. What will probably happen? 25,500, AccountspayableJul114,500???? Yes, all T-mobile insurance plans cover water damage. 3)they provide insurance to members. \hline & \text { Jul 31 } & 58,000 The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? What is the primary source of info for the underwriting department to determine insurability? B. Misrepresentation -birth of child. All of the following are methods of payment? C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. 4. What is the difference between renewable policy holder & Insurer? A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. All of the following statements are TRUE concerning Debtor Groups EXCEPT The insurance provides protection for a specified period of time. d) Fiscal responsibility. Correct: A.
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