All renewable term policies are accepted without__________ and only with_____ collected. b) Adjustable life AccountsreceivableJul1Jul3121,000???? Pro rata liability applies. Insurance is considered a transfer of risk. -tax free accumulation of borrowing. b. persistent fear of germs The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? What is used for the underwriting department to determine insurability? d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. D. Solicit applications on insurer's behalf - Limited Pay Life In this case, the applicant will most likely need to fill out a Statement of Good Health. c) An agent offers tickets to a baseball game as an inducement to buy insurance. After Alex has made 20 premium payments, his life insurance policy is considered -policyowners right provision 3)2 death benefit option -receiving dividends(when declared) The correct answer is: Maggie's Piano Studio with 1 employee. c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. 1) insured gets higher amount 2)people under the influence of drugs or alcohol Which of the following best describes a surplus lines broker? Insurance is designed to cover both intentional and unintentional losses. 1. Agent Sam is using the human life value approach to assess Mary's life insurance needs. D. Agents report. d) Tax-deductible. Jul3125,500\begin{aligned} 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. The total of all requisitions of indirect materials issued during the month is$20,170.00. Rates B. When must insurable interest exist in a life insurance policy? (b) Face amount decreases during the policy period, but premiums remain level. Suitability Only one party is giving a legally enforceable promise- A one-sided contract is what? D) They must be signed by both the Producer and the applicant. 2)FCRA(fair credit reporting act) checks MIB report. Which of the following is true regarding the beneficiary designation of the former spouse. A. -cash value options The policy's cash value grows as the investments grow. 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". 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? Carl would like to purchase life insurance. Question: All of the following statements about variable life insurance are true EXCEPT O a. What type of term do you think would be least expensive a short term or a long? B. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? D. Gender. D. Term life. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. (2), The current market will influence the cash value Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. also known as acceptance. (b) Prepare a correct income statement for October 2017. (c) Most policies can be converted to a permanent life insurance policy. Accelerated Living Benefit/Death Benefit is what type of rider? What is the primary source of info used to determine insurability by the underwriting department? I. The insurance provides protection for a specified period of time. When a policy is contributory how much is paid? 1. The cash value available to the policyowner The purpose of an estate clearance fund is to pay all of the following EXCEPT. c) A person who handles assets or money belonging to others. 3)2 Death benefits-(level/increasing) After insurer makes an offer, what must the applicant do? B. b. it frequently includes coverage for losses due to casualty and theft. 4)policy matures at age 100. All of the following characterize term life insurance, EXCEPT: Select one: a. (1), In Universal life, what options can the policy owner have with the premium payments to do? A __________ represents the insured. A whole life insurance policy is exchanged for a term insurance policy. D. Unilateral Contract 1) All requirements are met c. It is the failure to use ordinary care. Conviction of a felony involving moral turpitude. b) Index used by stock companies Which of the following about a VUL insurance policy is (are) true? Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. The face amount decreases as the amount owed on the mortgage decreases. \end{array} Consumer report The NAAR for a life insurance policy is the difference between the d) The policy can be reinstated by paying back all policy loans and premiums. 1)Statement of continued good health C. Medical Background a. whole life paid at 65 b) The elderly c) Helping insureds to file claims C. Waiver This is called. 3)Minors. C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. 2)face amount is set Correct: A. a) Because the insured is currently not a drug user, his policy will not be affected. C. Solicit applications on the insurer's behalf What are the (5) Factors considered with combination policies Who and What are they? An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Credit life Insurance is designed to cover both intentional and unintentional losses. C. Funding business continuation agreements (c) variable life insurance. An Applicant inaccurately representing information on the application is guilty of: A. O c. The policyowner has the option of investing the cash value in several investment accounts. (c) PV of the family's share of a deceased breadwinner's future earnings. Correct: A Insurance . ____________ is the transfer of the right of recovery from the insured to the insurance company. C) An insurance contract must contain a copy of the original application. D) Claims result from losses by a peril insured against in an insurance policy. Which of the following is the basic source of information used by the company in the risk selection process? WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} What contract characteristic does this describe? All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. d. d) Fair Credit Reporting Act. Predicted needs of the family after the insured's death &\begin{array}{lr|rr} On DUE DATE. Compensating executives Liquidity in life insurance refers to availability of cash to the insured. In a car accident dealing with ADB who covers the passenger? 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. -kids till 21 b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). 1)policy owner can increase/decrease/ or skip premium payments 1) premium schedule differ from whole life D. Effect of inflation on income over time. \end{array} An Insurance broker is responsible for what? What are some of the questions asked on the application to determine the premium and risk classification of the insured? In this particular instance the applicant did not commit intentional fraud. 3)they provide insurance to members. b) Failure to promptly settle a claim when liability has been clearly established C. State Education Waiver (b) They increase at a decreasing rate. All of the following are methods of payment? b) Larger. 2)attorneys Insurance is an important tool to manage risks, but often unavailable to poorer households. An insurer that is incorporated in the same state that they are doing business in is a_____________.? The policy is issued for one year and may be renewed annually with evidence of insurability. (a) Interest is credited monthly to a policy's cash value. For example, a claim will be paid only is there has been a covered loss. A producer wishing to appeal the final order of the commissioner would appeal to???? Which of the following is an example of an unfair claims settlement practice? 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. Correct: C. Concealment, A. I. (2), 1)HIPPA 4) 3 components to the premium, The owner and the insured are different people. He would also like to invest in a mutual fund. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. B. Dividends received by policyholders of a mutual insurer are not taxable. A. _______ pays dividends to the stock holder. -usually mutual fund security Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} 2)quarterly ~~~\text{Rent on factory facilities}&60,000\\ CPI (consumer price index) without evidence. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. O b. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. c) Copy of the original application All of the following statements about universal life insurance are true EXCEPT \hline && \text { Jul 31 } & 111,000 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. Involuntary Risk Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? 3) Increasing Term. The following are all true regarding risk management, except: A. A. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. D) Obtaining a bachelor's degree. b) Cost of living rider. c) To protect the policyowner B. & \text { Depr } & 3,000 \\ 3)low premiums. (must exist at the time of application). 1)tax qualified plans (3), WHat is the difference between universal and whole life policies? Which of the following about yearly renewable term insurance is true? (c) human life value method The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. The money in a savings account D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. ? To sell variable insurance what must you have? -age 100. C) They must contain a warning that actual results may vary. A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. &\text { Rental Class }\\ All The statements made on the application are called ______? b) An agent offers to share his commission with a policyholder. An underwriter will consider each of the following factors when evaluating a risk, except: A. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? d) Living need rider. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? 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? 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. A. Foregin D. Reduction is a method of managing risk. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? (c) conversion provision d) The Guaranty Corporation. Which of the following is usually true of a participating life insurance policy? 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. The County is administered by a five-member Board of Supervisors who are elected for four-year terms The applicant's medical background is addressed in Part 2 - Medical Information. 3. *Both not taxable. Benefits received are considered income taxable Rates are considered inadequate when they do not cover projected losses and expenses. 1. The policyowner has a variety of options for investment of the cash value. The cost of a living rider is calculated by what? 4)defined contribution plans. The designation will be void/. Difference between Universal Life Insurance and Whole Life Insurance? A. (b) variable life insurance Annual income Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. B. b) Coverage ends and the policy cannot be reinstated. You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. Predicted needs of the family after the insured's death Which of the following is a financial rating service? a) The policy can be converted to term coverage. 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? Universal Life is also known as two things what are they? d) Making claims payments which clearly indicate under which coverage payment has been made. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. c. continuous premium whole life Modification to a policy is a _______________? 4)explain policy & provisions . -has cash value invested in the stock market Correct: C. Condition contract, enforceable only under certain conditions. This form of life insurance has fixed premiums and the cash value is not guaranteed. -below market interest rates on borrowing c) Policy loans are taxable distributions. 2) form of interest sensitive life insurance(current market conditions influence the cash value) Who assumes control over an insurance company's funds and management if it becomes insolvent? D. Represent the insured's interest There is no limitation on the number of key employee plans in force at any one time. Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? 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? Represent the insured's interest a) Withdrawals are not taxable. C. A husband or wife has an insurable interest in their spouse Explain your answer. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? 3)substandard-highest, 6 factors that are complete for policy 2 be paid? Fraud A. Which of the following statements is not correct regarding rates and premiums? a) Small employers (a) capital retention approach -If the insured dies, the policy payed out the PRINCIPAL SUM A. * 50% is paid It is the specific cause of loss. c. Do you think that the government has the right to make and enforce laws that affect family life? (a) renewal provision d) 15 years. a) Indeterminate Premium Alex, age 26, purchased a 20- payment whole life insurance policy. Waive the premium if the INSURED becomes totally disabled. In an insurance contract, the value that each party gives the other is called the: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health James purchased yearly renewable term insurance. AKA-payout phase. c) Denying coverage after a reasonable investigation has been conducted b. Department of Defense B. A surplus lines broker deals with direct writing companies only \hline \text { Jul 1 } & 22,000 \\ All of the following statements are true regarding mortgage protection insurance EXCEPT. 2)APS=medical records good health An aleatory contract is a contract where the monetary values of the parties performances are________________. 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? (b) II only Business partners have an insurable interest in each other All of the following statements are TRUE concerning Debtor Groups EXCEPT Which type of life insurance makes sense for someone in this situation? 10 year level term Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. An individual applies for a life policy. C. Hazards To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. C. The death benefit paid to the beneficiary A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers The Terrorism Risk Insurance Program is administered by which of the following Federal entities? The policy does not go into effect until the premium has been collected. c) 15% for early withdrawal 2) Binding Reciept. - 20 pay life-premiums paid for 20 years and paid up at 65 Life expectancy has increased in the U.S. over the last century. Who would be eligible to obtain SGLI? Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date 3)Explain any riders or exclusion A state administered health insurance for the needy? 1)Level (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. All of the following would be considered to be rebating EXCEPT Insurance is not designed to cover _____________ losses. A person who negotiates insurance contracts on behalf of an insured. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? C. Buy-Sell agreements are normally funded with a life insurance policy -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? 2)Decreasing term(premium is low) declining face value a) Remains level. All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Tax-qualified annuities are subject to IRA maximum contribution limits. 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? Are insurance company underwriters allowed to discriminate? a) Lump-sum approach D) the minor in a juvenile policy. -policy holder adheres to it See Answer. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. If the corporation collects the policy benefit, then 1)Domestic Insurer Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. 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. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution C. Independent rating services evaluate and rate the financial ability of insurance companies 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. 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. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. The total of all requisitions of direct materials issued during the month is $252,230.00. A. B) bonds 3. B) A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. \textbf{EMPIRE COMPANY}\\ A. If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. a) The policyholders or stockowners of the company What does "liquidity" refer to in a life insurance policy? and what two kinds? (b) single-parent family. \end{array} a) Year only. C. Application Members are assessed to fund the corporation. 3) Equity-Index annuity. Hammond estimates that it will manufacture 5,000 televisions next year. Appoint a solicitor as his or her representative (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. The cost of insurance protection is referred to as what? B. d) Accumulations are tax deferred. -20 pay life-paid up at 65 Contract or form of ownership is a ______________? All of the following statements about the settlement of a claim are true EXCEPT. b) The policy will not be affected. How do premiums for yearly renewable term insurance change as an insured gets older? d) Loss. 25,500, AccountspayableJul114,500???? 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. An agent has authority to do all of the following, except: A. Countersign insurance contracts Correct: B. Insurance companies can charge an interest rate based on the policyowner's credit report. The Boyle family can be described as a Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} 3)semi-annual Correct: B. c) Coverage ends but the policy can be reinstated at any time. The insurer issues the policy and learns of his history one year later. An annuity whose based on the stock market index? D. Premiums are tax deductible as a business expense, B. (Choose from the following options) ? Hospital bills of the key employee 2)administered charge 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 A. 1)cont. What are the two options in death benefit options? a) A retail clerk. the application is used at the primary source of info. ~~~\text{Depreciation on sales equipment}&45,000\\ d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. See Page 1. b) 5 years only. Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. Prepare a pie chart of on-time delivery performance for last month. Which of the following statements about limited-payment life insurance is true? (a) The insurance provides protection for a temporary period of time. cash value increases while face value remains the same. B. 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. \end{array} A key person insurance policy can pay for which of the following? \end{aligned} a) An agent offers the use of his lake house to person as an inducement to buy. 4. \textbf{For the Month Ended October 31, 2017}\\ Which of the following best illustrates a What are the 3 characteristics of a Mutual Insurance Company? Round Trees management makes a forecast of the demand by rental class for each night in the future. a) To limit the insurer's liability after the 2 year waiting period The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as 2)Family Income(decreasing term-policy) Cash value is invested in the stock market. (D The employer is the owner, payor and beneficiary of the policy. Their premiums are lower They keep a high percentage of any interest earned on their policies Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A.
Good Morning Text For Aries Woman,
Bmtcn Passing Score,
Articles A
