all of the following are true of insurance except

Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. 1) preferred-low Whole life policy. She meets the definition of total disability under Social Security. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. C. Insured's annual expenses Renew policy holder has an option- THE INSURER DOES NOT. The NAAR for a life insurance policy is the difference between the Jul3125,500\begin{aligned} When an applicant pays the initial premium the agent will give them a what? Upon policy delivery, the producer may be required to obtain any of the following EXCEPT 3)2 death benefit option D. Funding against general company financial loss. 5)Survivorship Life Policy (policy holder pays themselves). When a policy is contributory how much is paid? A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? Credit life 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. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? C. Medical Background An Insurance Broker is responsible for what? ADD( Accidental death and dismemberment??? -cash value can lose value. A) the agent. Insurance is designed to cover both intentional and unintentional losses. When a policy is non-contributory how much is paid? There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Who might receive dividends from a mutual insurer? B. IRS has no jurisdiction Increasing term 3)they provide insurance to members. ? 3)Alien Insurer. There is a limit for a withdrawal and the insurer charges a fee. It requires evidence of insurability for renewal. The failure to disclose known facts is what? (d) Premiums increase at an increasing rate upon renewal. 2)non-qualified plans If the corporation collects the policy benefit, then cheating. The correct answer is: The premium decreases to zero by the end of the policy period. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). (b) tax-free exchange provision C. Risk -pay for certain time and stop B. Beneficiarys age The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. exclusions: when the accident occurs within an illness,disease, or mental infirmity. 3)MIB=records of all previous insurances they had. (2), 1)HIPPA (Hint: Take a look at the Theory of Reasoned Action.). To sell variable life insurance policies, an agent must receive all of the following EXCEPT 3) policy builds cash-value insured is always the borrower & the beneficiary=lender 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? -it pays the double indemnity, 1)accident occurs, person must die within 90 days Surplus lines broker deals with admitted carriers only What are some of the questions asked on the application to determine the premium and risk classification of the insured? 1)physical exam c. Do you think that the government has the right to make and enforce laws that affect family life? a) Juvenile Life What does "liquidity" refer to in a life insurance policy? -ages 25,28,34,37,40 B. 1) coverage is permanent \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ when the applicant/owner is not the insured-3rd party Which of the following statements about universal life insurance is true? Prior to October 2017, the company had been profitable every month. a) Small employers The death benefit varies according to investment experience. c) Misrepresentation Term-Life policy has what 3 characteristics? 1)increase cash value Past-due interest on a policy loan is added to the total debt. B. (d) endowment insurance, Rachel needs permanent life insurance. Legal Purpose b) A producer who handles insurer funds in a trust capacity. B. Nonparticipating policy. 2) profits are returned as dividends Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . 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. To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. What is the difference between renewable policy holder & Insurer? Jul3119,500\begin{aligned} B) The parent is responsible for the premium. 1) preferred risk 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? Occupation A SEC registration. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. Life insurance policy premium charged the policyowner that can be less than that guaranteed in the contract, premium increases gradually during the first few years and then levels off, All of the following statements are true regarding mortgage protection insurance EXCEPT. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. CashJul1Jul315,500???? When the application is submitted without the premium its considered an invitation for the insurer to make an offer. 3)Family Policy(Limited but all fam members paid) Accelerated Living Benefit/Death Benefit is what type of rider? A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. d) The insurer will sue the insured for committing fraud. 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 (a) renewal provision 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? (c) PV of the family's share of a deceased breadwinner's future earnings. c) Fixed premium Who appoints the state insurance regulator in many states? A debtor has insurable interest in the life of a lender 2)Explain and collect any ratings All of the following are common characteristics of this coverage EXCEPT AccountsreceivableJul1Jul3121,000???? d. The total of all cost sheets completed during the month is $628,880.00. &\begin{array}{r|lr} A. Difference between Universal Life Insurance and Whole Life Insurance? Life expectancy has increased in the U.S. over the last century. 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. a) Universal life 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. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. (c) both I & II (d) neither I or II. 4. 2)Straight Life Estate Creation B. 1. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. 1)cont. . Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. a) To limit the insurer's liability after the 2 year waiting period Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds * 50% is paid (c) face amount of the policy and the legal reserve. 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 What is a statement in the application guaranteed true in all respects? D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). If a change in the application is necessary what is required? -provides income for retirement 1)tax qualified plans 1) Conditional Reciept Insurance is not designed to cover _____________ losses. \text{ ???? } Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. 1 / 25. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. A false statement in the application for insurance is_____________. ~~~\text{Depreciation on sales equipment}&45,000\\ Which of the following about decreasing term insurance is true? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. e. The total of costs recorded on all sales invoices for the month is$654,052.00. Beneficiary's age Statements in the application that are guaranteed true but later found to be false may result in what? Members are assessed to fund the corporation. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? A. I. After insurer makes an offer, what must the applicant do? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. B. b) To deter the policyowner from committing suicide AccountspayableJul1Jul3114,500??? c) Guides describing company financial integrity O b. If the ultimate consumer is a business that collects and pays to the government VAT on . D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. There is no limitation on the number of key employee plans in force at any one time. a) Indeterminate Premium D) An agent's report and inspection report provides personal information. b) Fiduciary responsibility. B. Get more out of your subscription* Access to over 100 million course-specific study resources (b) Any withdrawal of cash value reduces the death benefit. Explain your answer. -low commissions c) 15% for early withdrawal 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. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same The policy is issued for one year and may be renewed annually with evidence of insurability. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? 2) Binding Reciept. b. 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. (c) both I and II What will probably happen? An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. D) the minor in a juvenile policy. 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. Correct: B. Your device, make and model. Concerning insurance, the definition of a fiduciary is c. Using the payback period, which project should Bill choose? ? Daycare is considered to be among these expenses. C. The insured may retain part of a risk through deductibles. Level-increasing face value. 3)2 Death benefits-(level/increasing) 6)free-look period-$ back guaranteed. D. The policy is a bilateral contract M327. On DUE DATE. Benefits received are considered income taxable Life insurance prodceeds a. Domestic Insurer The policy is a conditional contract It is the specific cause of loss. B. Fraud B. Buy-Sell Agreements pay in the event of a medical emergency -guaranteed/fixed/level payment, -Immediate "annuitization phase" All of the following statements are true regarding mortgage protection insurance EXCEPT. 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? The ___________ controls all rights of the contract. D. The face amount remains the same throughout the life of the policy. 10 year level term -tax free accumulation of borrowing. The designation will be void/. D. Alien -below market interest rates on borrowing Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. c) Smaller. The person who receives the benefit when insured dies. \hline \text { Jul 31 } & 3,000 EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} All of the following are required signatures on a life insurance application EXCEPT. In this case, the applicant will most likely need to fill out a Statement of Good Health. -But pays you interest, 1)Fixed annuity I. \text { Type I } & \$ 30 & \$ 35 & - \\ Pure risk Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. \hline & \text { Jul 31 } & 19,500 also known as acceptance. 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? -the applicant must always initial the change Agents and producers must place business through an insurer with the lowest rated a) Lump-sum approach B. Avoidance Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. (b) Most policies can be renewed without evidence of insurability. Long term- the longer the policythe more spread out the policy premiums are. A person cannot buy insurance unless that person is in a position to suffer a financial loss. 3)Minors. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. (receive dividends & the right to vote). 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) Failure to promptly settle a claim when liability has been clearly established (must exist at the time of application). A life insurance policy is exchanged for an annuity. a) Executive offer of the replacing company Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Last year, the couple got divorced. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? C. It's a decreasing term insurance. still matures at age 100, -premium is paid off at one time All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. (c) both I & II (d) neither I or II, Diane is a single parent. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles \hline \text { Jul 1 } & \begin{array}{r} c) Accelerated benefit rider. The face amount decreases as the amount owed on the mortgage decreases. - Limited Pay Life D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". Premiums are not tax deductible as a business expense. What characteristic must an annuity have if it is used to accumulate funds in an IRA? Correct: B. Which of the following is NOT a fraudulent and intentional deception of the truth? Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? b) Copies of illustrations and application Its controller resigned in October 2017. Which of the following is an example of liquidity in a life insurance contract? To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. ~~~\text{Depreciation on factory equipment}&31,000\\ Exclusions always exist, and there is a reason for each one. d) Tax-deductible. Which of the following statements concerning buy-sell agreements is true? insurable interest must exist. Estimated direct labor costs for next year are$440,000.00. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? Rates Who assumes control over an insurance company's funds and management if it becomes insolvent? Buy-sell agreements are normally funded with a life insurance policy. -birth of child. 3) Retaining the risk. b) Coverage ends and the policy cannot be reinstated. &\text { Accounts payable }\\ It is used to help adequacy and equity in rates. -assignor=assignee & \text{ ???? } -has cash value invested in the stock market James purchased yearly renewable term insurance. 1) cash value earns interest 2)Decreasing term(premium is low) declining face value The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. Premiums are not tax deductible as a business expense A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? D) They must be signed by both the Producer and the applicant. If someone dies within the Grace period, what happens? In a car accident dealing with ADB who covers the passenger? A state administered health insurance for the needy? d) Buyer's Guide. 2. c) Conditional b) Larger. All of the following statements about term insurance are true EXCEPT. The following are all true regarding risk management, except: A. I. What is the primary source of info used to determine insurability by the underwriting department? c) A person who handles assets or money belonging to others. Any gain in the policy's cash value is . A. signed waiver of premium DONT PICK IT!!!!!! What constitutes the acceptance of an offer? 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. 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. -pays an additional death benefit if the insured dies from an accident \text { Type II } & \$ 20 & \$ 30 & \$ 40 A) An indeterminate premium reduction policy is a policy in which the premium is guaranteed for an initial period, then the insurer can charge up to a maximum premium charge that is specified in the policy. What is NOT invested in the stock market but pays you interest? B) The plan is funded by permanent insurance only. Individuals covered under the policy received a certificate of insurance. Applicant pays premium to make agreement. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. 1) the premium amount 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) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. b. -then picks a contract. $ cant exceed indebtness. 2. C) Completing pre-licensing training. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. D) Claims result from losses by a peril insured against in an insurance policy. D. Concealment A surplus lines broker deals with direct writing companies only \end{aligned} C. A surplus lines broker deals with direct writing companies only A company doing business in the same state it was incorporated in and owned by the policy holders. The applicant accepts the invitation by paying the ___________. See Answer. a) Consumer Privacy Act What type of term do you think would be least expensive a short term or a long? b. & &&\textbf{ Quarter } \\ b) The policy will not be affected. 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 . \text{Less: Operating expenses}\\ D. Unilateral Contract Are insurance company underwriters allowed to discriminate? 90-180 days. Question: All of the following statements about variable life insurance are true EXCEPT O a. considers Lloyds of London an Alien insurer D. Speculative Risk (a) blended family. D) Obtaining a bachelor's degree. ~~~\text{Utilities expense}&12,000\\ c) To protect the policyowner Which of the following about a VUL insurance policy is (are) true? C. it is often experience-rated, with premrums based on expected losses. The purpose of an estate clearance fund is to pay all of the following EXCEPT. 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). You cannot sell a variable policy without what? d) Decreases annually. a) A medical examination 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. Business partners have an insurable interest in each other 2)standard-average a) Premium amounts and surrender values All of the other statements are true. (a) I only (b) II only An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. Statement of good health -marriage States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. A. Foregin \textbf{For the Month Ended October 31, 2017}\\ A mutual insurance company is owned by who? c) The policy will be voided. 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? 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. d) Performing reviews of insured's coverage. D. Effect of inflation on income over time. C. A husband or wife has an insurable interest in their spouse 3) Increasing Term. &\text { Cash }\\ c) Copy of the original application C. Loss of personal income C. Payment of premium 25,500, AccountspayableJul114,500???? Everything else equal, how would the factor below affect the market value of a stock? Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. This type of life insurance is called d) Accumulations are tax deferred. d) Producer. -guarantee a stream of income to the person purchasing it known as the annuitant. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ C) purchasing family term insurance. 4)defined contribution plans. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Which of the following is usually true of a participating life insurance policy? How does having children affect the decisions that couples must make when considering a divorce? A ______ will receive unfavorable tax treatment. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. A conditional or binding receipt is given when an applicant does what? The penalty is 50% of the shortfall from the required annual amount. Endowments means policy is what(2) things? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). \hline \text { Jul 31 } & 25,500 B. Being young and healthy means you can skip out on health insurance. c) An agent offers tickets to a baseball game as an inducement to buy insurance. A. -it is a type of Rider a) Accepted accounting principal. a) A retail clerk. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? (economy). A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights C. Tax Status Correct: A.A peril. Which of the following is NOT an allowable 1035 exchange? Pro rata liability applies. 5)coverage begins When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Empire Company is a manufacturer of smart phones. 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. A producer wishing to appeal the final order of the commissioner would appeal to???? (d) free look provision. The money in a savings account Which of the following types of insurance policies would perform the function of cash accumulation? -The insurer would pay the face amount of the policy minus the past due premium. d) Limited pay. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? C. Premiums are tax deductible by the key employee a) Types of mutual companies All of the following statements about universal life insurance are true EXCEPT -and the right to vote. B. 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 . By William Lb Qtjetjx, Author of . Cash values are available in whole life policies. a) Year only. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. - 20 pay life-premiums paid for 20 years and paid up at 65 D. Viatical settlement. Exclusion Categories Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. The debtor does not have an insurable interest in the life of the lender. A. contract of adhesion All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. 2) form of interest sensitive life insurance(current market conditions influence the cash value)

Jamie Perkins Swimmer, Articles A