c) Comparisons with similar policies b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). 2)face amount is set (c) Most policies can be converted to a permanent life insurance policy. 3. The issuance of a _________ is the result of the acceptance of an offer. 2)premium gets lower. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. What is a statement in the application guaranteed true in all respects? Which of the following best describes a surplus lines broker? C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Correct: C. Unilateral contract. The insurance provides protection for a specified period of time. &\text { Rental Class }\\ ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ \hline \text { Jul 31 } & 17,000 What are (4) characteristics of permanent insurance? (c) both I and II The benefit is subject to the exclusionary rule d) Limited pay. \end{aligned} The policy's cash value grows as the investments grow. c) The policy will be voided. \end{array} \\ (b) single-parent family. -policyowners right provision ? (c) conversion provision b. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). C. A surplus lines broker deals with direct writing companies only D. Aleatory contract Accelerated Living Benefit/Death Benefit is what type of rider? Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. has reached its final destination and can be paid out in full. 1) Family Maintenance(breadwinner) c. Using the payback period, which project should Bill choose? (c) PV of the family's share of a deceased breadwinner's future earnings. still matures at age 100, -premium is paid off at one time An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? Correct: A. Chapter 11 - Life Insurance. ? Which of the following about a VUL insurance policy is (are) true? 4)Consumer report=credit, -shorter time span for paying premiums b) To deter the policyowner from committing suicide (d) Most policies have a CV that is refunded when coverage ceases. C. State Education Waiver A company doing business in the same state it was incorporated in and owned by the policy holders. 1) the premium amount A. All of the following are true regarding life insurance illustrations EXCEPT. a) Premium amounts and surrender values B. D. Funding against general company financial loss. An__________ represents the insurer. Something of value is a __________________. These individuals qualify for lower premiums than those in the other categories. 1)physical exam AccountsreceivableJul1Jul3121,000???? Hammond Corporation manufactures televisions. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights & \text{ ???? } Conditional Contract Level-increasing face value. IRS classification of a policy that is overfunded? What type of term do you think would be least expensive a short term or a long? C) purchasing family term insurance. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. a) Aleatory (2), 1)HIPPA Nonparticipating policy. D. Agents report. 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. \end{aligned} good health -sex doesn't determine eligibility. &\text { Accumulated depr.-equipment }\\ 1)premium payment When will coverage begin? C. Concealment An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. 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 type of life insurance makes sense for someone in this situation? (d) sandwiched family. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. All of the following statements regarding contracts of indemnity are true EXCEPT a. a) Year only. 3. Certificate holders may convert coverage to an individual policy without evidence of insurability. a. C. A surplus lines broker accepts business only from non- resident agents cheating. d) Graded Premium. There is no limitation on the number of key employee plans in force at any one time B. c) Conditional b) Policyholder Insurance is an important tool to manage risks, but often unavailable to poorer households. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. Nature of risk 1) preferred risk (a) Evidence of insurability is not required to renew the coverage. 3)premium is collected d. It does not require a duty to be owed. All of the following characterize term life insurance, EXCEPT: Select one: a. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. What constitutes the acceptance of an offer? States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. a) Using arbitration when the insured and insurer cannot reach agreement 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 ___________ controls all rights of the contract. Which of the following is a physical hazard? \end{array} Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. 2) Binding Reciept. - 20 pay life-premiums paid for 20 years and paid up at 65 IN WHITE RAIMENT. Can term insurance be both renewable and convertible? 21,000 \\ The Boyle family can be described as a The primary purpose of buying an annuity is? Which of the following about the use of ordinary life insurance is true? A. Foregin Only the MIB will provide information about an applicant's medical history. There is a minimum guaranteed interest rate on all sub-accounts. c) Coverage ends but the policy can be reinstated at any time. What is the primary source of info for the underwriting department to determine insurability? When an applicant pays the initial premium the agent will give them a what? Various life insurance programs for people who served in the military are called ______________? The remaining amounts should be charged to selling and administrative activities. The storage of flammables in a fireproof container. 4)settlement options, 1)stand alone policy -greater potential to grow the cash value but there is no guarantee Correct: C. Concealment, A. -receiving dividends(when declared) b) Reduced paid-up Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. 3)Alien Insurer. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Whoso. An aleatory contract is a contract where the monetary values of the parties performances are________________. 3. \end{aligned} Last year, the couple got divorced. Concerning insurance, the definition of a fiduciary is \\ ~~~\text{Direct labor cost}&190,000\\ Retention, Avoidance, and Transfer are all _________________. Jul3117,000\begin{aligned} Which of the following statements about endowment policies is true? Which of the following is TRUE regarding assignment rights for . The penalty is 50% of the shortfall from the required annual amount. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. 2) profits are returned as dividends \text{Sales revenue}&&\$780,000\\ d) Blackout approach. 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? If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. 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. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. 1) Avoiding the risk A ____ contract requires that both parties perform certain duties. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. DONT PICK IT!!!!!! I. c) Increases annually. Predicted needs of the family after the insured's death Term life insurance provides pure death protection. What does "liquidity" refer to in a life insurance policy? B) A fiduciary is a producer who handles insurer funds in a trust capacity. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. 1)policy owner can increase/decrease/ or skip premium payments Which of the following is NOT a fraudulent and intentional deception of the truth? 2)collateral assignment-some or only one right assigned. Quarterly working capital levels for your firm for the next year are included in the following table. 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. B) the applicant. Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. A surplus lines broker accepts business only from non- resident agents 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. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. b) The policy will not be affected. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. Breach of warranty D. The face amount remains the same throughout the life of the policy. C. Tax Status In a car accident dealing with ADB who covers the passenger? &\text { Accounts receivable }\\ Liquidity in life insurance refers to availability of cash to the insured. B. Insurers use this law in order to predict certain types of losses and set appropriate premiums. \hline & \text { Jul 1 } & \begin{array}{r} -Can't lose value -Follows all conditions of contract & pays premium, -insurer says how policy works 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 . Example: company that is incorporated in NJ and sells in NJ. Estate Creation B. Acceptance 2) premiums do not change D. Viatical settlement. D. Represent the insured's interest (Hint: Take a look at the Theory of Reasoned Action.). Explain your answer. (a) blended family. All of the following statements about term insurance are true EXCEPT. B. Marital Status A person cannot buy insurance unless that person is in a position to suffer a financial loss. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. &\begin{array}{lccc} Any gain in the policy's cash value is . d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. What are the permanent working capital needs of your company? d) Living need rider. The designation will be void/. 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. Endowments means policy is what(2) things? When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. Most policies can be renewed for additional periods without evidence of insurability. ____________ insurer is not a type of insurer. Estimated direct labor costs for next year are$440,000.00. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. D. Premiums paid are deductible as a business expense. 2)administered charge As her friend, you have been asked to review the income statement and make necessary corrections. D. Alien Contract or form of ownership is a ______________? (d) annual premium and the annual policy dividend. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. Non-Participating (stock) Life Insurance Policy. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Agent Sam is using the human life value approach to assess Mary's life insurance needs. -paying for certain time and stop. b) Hazard Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} What is the term for a cause of loss, such as the theft of a car? How do premiums for yearly renewable term insurance change as an insured gets older? Empire Company is a manufacturer of smart phones. \end{array} (a) I only D. Offer d) Paid-up option. C. Department of State If applicant is not the insured- then insureds signature is required Life insurance proceeds What is the purpose of a suicide provision within a life insurance policy? B. A peril C. Whole life B. Insureds current and future income don't pick binding receipt at all on test. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. 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. Fraud (a) universal life insurance. 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. b) Failure to promptly settle a claim when liability has been clearly established The concept that the insured should not profit from an insurance transaction is called what? 1) premium schedule differ from whole life The applicant has been shown to be a poor personal credit risk. A key person insurance policy will pay for costs of running the business and replacing the employee. Newborns after how many days become covered in a child rider? C. Buy-Sell agreements are normally funded with a life insurance policy a) Material change B. c) Denying coverage after a reasonable investigation has been conducted What type of interest does universal life have? Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. b) Larger. Investors become more risk averse. If company pays dividends, then they are a? Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Warranty ? A mutual insurance company does not have what? Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? All of the following are common characteristics of this coverage EXCEPT (b) Any withdrawal of cash value reduces the death benefit. ~~~\text{Selling and administrative salaries}&75,000\\ a) Lump-sum approach 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. -Prepays portion of face amount if diagnosed with terminal illness. Is interest always gained in Universal Life Policy? A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. d) Buyer's Guide. c. Do you think that the government has the right to make and enforce laws that affect family life? A __________ represents the insured. \end{aligned} 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. All of the other statements are true. InventoryJul1Jul3122,000???? 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. Round Trees management makes a forecast of the demand by rental class for each night in the future. ? Applicant pays premium to make agreement. -insured can stop paying premiums at certain age or after a period of time a) A retail clerk. Costs of training a replacement C. It's a decreasing term insurance. D. The policy is a bilateral contract 5)Survivorship Life Policy (policy holder pays themselves). D) the minor in a juvenile policy. Whats the cheapest type of permanent insurance? There is a limit for a withdrawal and the insurer charges a fee. A) the agent. 2. I. \end{aligned} d. The total of all cost sheets completed during the month is $628,880.00. -policy holder adheres to it What are the (5) Factors considered with combination policies Who and What are they? 1)Level Does T-Mobile Insurance Cover Water Damage? 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.
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