4. An insured becomes disabled at age 22 and can no longer work. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . a. A ______ will receive unfavorable tax treatment. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. 3)low premiums. InventoryJul1Jul3122,000???? 2)Increase the face value All of the following are business uses of life insurance EXCEPT Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. d) Contingent. 10 year level term \text { Type I } & \$ 30 & \$ 35 & - \\ & \text { Depr } & 3,000 \\ What is the primary source of info for the underwriting department to determine insurability? -A Mec will receive unfavorable tax treatment A. contract of adhesion When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health Insurance is not designed to cover _____________ losses. 4)Consumer report=credit, -shorter time span for paying premiums Cause of potential loss to property such as fire, windstorm, hail, flood, etc. 2)not payable in conjunction. (c) conversion provision Which type of life insurance makes sense for someone in this situation? -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? When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? Hazard A mutual insurance company does not have what? Correct: A. c) 10 years. An Applicant inaccurately representing information on the application is guilty of: A. Where does group-life insurance come from? A. Retention, Avoidance, and Transfer are all _________________. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. and is NOT a party to the contract. A SEC registration. B) The parent is responsible for the premium. &\begin{array}{l|lr} \hline \text { Jul 31 } & 3,000 c) Counselor The correct answer is: Maggie's Piano Studio with 1 employee. Out of 20 yr or 30 yr which policy is less expensive? For example, a claim will be paid only is there has been a covered loss. Contract or form of ownership is a ______________? 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. All of the following statements concerning coinsurance are true, EXCEPT . Upon policy delivery, the producer may be required to obtain any of the following EXCEPT Explain your answer. C. A surplus lines broker accepts business only from non- resident agents b) Policyholder C. Unilateral contract O b. Most agents try to collect the initial premium for submission with the application. The policy is a conditional contract b) Cost of living rider. c) Disclosure rule 1. 1) the premium amount -has cash value invested in the stock market -Take it or leave it contract 1) premium schedule differ from whole life How has the Aswan High Dam affected the lives of Egyptians? B. 3)riders & exclusions d. -20 pay life-paid up at 65 A surplus lines broker accepts business only from non- resident agents -the insurer sets the terms of the contract and the applicant must adhere to them. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. One sided contract is a ______________ contract. 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. 3)2 death benefit option \hline \text { Jul 1 } & 22,000 \\ Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. Whats the cheapest type of permanent insurance? -greater potential to grow the cash value but there is no guarantee Universal Life is also known as two things what are they? Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Which method makes the most sense for her to employ? What does it mean when a policy is limited pay life? By William Lb Qtjetjx, Author of . Buy-sell agreements are normally funded with a life insurance policy. The companys president is concerned about the accuracy of the income statement. Reinsurer Assuming company. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? 2. Predicted needs of the family after the insured's death Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. 2)standard-average Compensating executives There are 2 parties of the contract- what are they? a) Lump-sum approach 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. 4) Joint-Life policy(business part) Insurance policy of 2 or more d) An agent misrepresents policy benefits to convince a policyowner to replace policies. A key person insurance policy will pay for costs of running the business and replacing the employee. A. Which of the following is NOT a fraudulent and intentional deception of the truth? C. Buy-Sell agreements are normally funded with a life insurance policy Which of the following statements is NOT true concering insurable interest as it applies to life insurance? 3)Rider expires 60,65,75. Cash values can be borrowed at any time The Terrorism Risk Insurance Program is administered by which of the following Federal entities? 14,500 \\ When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? (b) They increase at a decreasing rate. d) Fair Credit Reporting Act. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. b) A producer who handles insurer funds in a trust capacity. What happens when there is a Misstatement of age or sex? Term life insurance provides the largest amount of coverage for the lowest amount of premium. . \hline & \text { Jul 1 } & 55,000 \\ D. They can decide when to pay their monthly premiums. 1) coverage is permanent Consumer report A Contract that binds only one party to future performance, is a (n): A. (d) Most policies have a CV that is refunded when coverage ceases. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. ~~~\text{Advertising expense}&90,000\\ 2)Family Income(decreasing term-policy) Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Which model is the better fit for the data? Which of the following is the best reason to purchase life insurance rather than annuities? A) the agent. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. Warranty \end{array} \\ Its controller resigned in October 2017. D. Effect of inflation on income over time. &\text { Retained Earnings }\\ What is the purpose of a suicide provision within a life insurance policy? d) Producer. Who might receive dividends from a mutual insurer? 3)substandard-highest, 6 factors that are complete for policy 2 be paid? Tom and Nancy Boyle provide financial support for their two children. Pure Risk. d) Paid-up option. &\text { Accounts payable }\\ database of previously life and health insurance applications. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. 2. a) Remains level. 1)physical exam Daycare is considered to be among these expenses. An agent and an applicant for a life insurance policy fill out and sign the application. The premium is level and guaranteed not to increase. Yes, all T-mobile insurance plans cover water damage. When an applicant pays the initial premium the agent will give them a what? (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? Does T-Mobile Insurance Cover Water Damage? Which of the following statements is not correct regarding rates and premiums? The following are all true regarding risk management, except: A. c. C. The death benefit paid to the beneficiary Which of the following about decreasing term insurance is true? D. Claim History (1), In Universal life, what options can the policy owner have with the premium payments to do? See Answer. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. &\begin{array}{lr|rr} Copyright 2009-2022 Tests.com LLC - All Rights Reserved. a) Accepted accounting principal. *Both not taxable. 2)Decreasing term(premium is low) declining face value 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. In a car accident dealing with ADB who covers the passenger? 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. \end{array} He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. 3)premium is collected Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer B. c. Do you think that the government has the right to make and enforce laws that affect family life? d. falsely believing that a spouse has been baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. c) An agent offers tickets to a baseball game as an inducement to buy insurance. B) Underwriters. (b) Any withdrawal of cash value reduces the death benefit. All of the following are true of insurance EXCEPT It transfers risk. Misappropriation or illegal withholding of the policyholder's money. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. C. Solicit applications on the insurer's behalf Life insurance proceeds -But pays you interest, 1)Fixed annuity c. It is the failure to use ordinary care. b) Reduced paid-up CPI (consumer price index) without evidence. \hline && \text { Jul 31 } & 111,000 D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers There is no limitation on the number of key employee plans in force at any one time B. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? 4. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. I. (Choose from the following options) D. Concealment The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. 1)Statement of continued good health 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. I. 3)MIB=records of all previous insurances they had. B. Level-increasing face value. D. group credit insurance must have a suicide clause . D. Reduction is a method of managing risk. 1 / 25. II. D) Obtaining a bachelor's degree. Insurance is an important tool to manage risks, but often unavailable to poorer households. (a) I only (b) II only \text{Sales revenue}&&\$780,000\\ (c) face amount of the policy and the legal reserve. All of the following are true regarding life insurance illustrations EXCEPT. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. C. Social Security works exactly same as private insurance. 4) 3 components to the premium, The owner and the insured are different people. 1)Whole Life Instructions The applicants(policy owner) (c) expired. Represent the insured's interest When does the grace period begin and how long is it? Domestic Insurer b. 1)temporary 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. 2)FCRA(fair credit reporting act) checks MIB report. The designation will be void/. a) Using arbitration when the insured and insurer cannot reach agreement a) Small employers Accelerated Living Benefit/Accelerated Death Benefit? All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. A _______ __ is the additional premium needed to get covered with high or substandard risk. 2) standard risk 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. Most policies can be renewed for additional periods without evidence of insurability. What are the 3 characteristics of a Mutual Insurance Company? AccountsreceivableJul1Jul3121,000???? 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. -Staged intervals Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. A) loss reserves 2. a) Types of mutual companies A key person insurance policy can pay for which of the following? \end{array} 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. Which of the following about a VUL insurance policy is (are) true? ________________ are the person who receives benefits payable upon death. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? Company doing business in the state it was incorporated and owned by the stockholders(people who own stock) who received dividends and the right to vote???? \end{array} Hospital bills of the key employee (2), 1)HIPPA The corporation also helps detect and prevent insurer impairments. All of the following statements about the settlement of a claim are true EXCEPT. The minimum FREE LOOK period is how many days? The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? D. Represent the insured's interest C. Insured's annual expenses 2)when benefits begin also known as acceptance. Their premiums are lower 3)semi-annual D. Alien 2)explain any ratings C. Application Jul3125,500\begin{aligned} (b) Face amount decreases during the policy period, but premiums remain level. Limited-Pay Life & Single-Premium Policies? a) Agent's report 3)Explain any riders or exclusion Predicted needs of the family after the insured's death are used in the needs approach. \end{array} Pure risk Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date a) Because the insured is currently not a drug user, his policy will not be affected. A. The County is administered by a five-member Board of Supervisors who are elected for four-year terms What is a statement in the application guaranteed true in all respects? -cash value options (d) neither I nor II. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person.