all of the following are true of insurance except
c) National Association of Insurance Commissioners c. It is the failure to use ordinary care. An Insurance Broker is responsible for what? (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Surplus lines broker deals with admitted carriers only A mutual insurer has no stock, and is owned by the policyholders. a) No penalties, since the owner is older than 59 B) They illustrate the nonguaranteed elements of the policy. (Choose from the following options) paperspast.natlib.govt.nz (c) PV of the family's share of a deceased breadwinner's future earnings. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. a) Because the insured is currently not a drug user, his policy will not be affected. D. An individual has an insurable interest in her or her own life. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. ~~~\text{Utilities expense}&12,000\\ C. Department of State (Choose from the following options) Funding against financial loss caused by the death of a key employee When will coverage begin? The ___________ controls all rights of the contract. 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. \end{array} ____________ is the transfer of the right of recovery from the insured to the insurance company. How do premiums for yearly renewable term insurance change as an insured gets older? b) Index used by stock companies 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. An applicant is denied insurance because of information found on a consumer report. All of the following statements about ordinary life insurance are true EXCEPT. Acceptance Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date \end{array} a) Accepted accounting principal. -has cash value invested in the stock market 1. Reinsurer Assuming company. Predicted needs of the family after the insured's death are used in the needs approach. Which term describes the probability of a loss? A) They must be given to all Life insurance applicants. When applicant is not the insured ______________ must exist. 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. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. Who gets $$money when the policy holder dies? c) Conditional ch2 Flashcards | Quizlet The applicant's medical background is addressed in Part 2 - Medical Information. Life Insurance Basics Flashcards | Quizlet 10 year level term AccountsreceivableJul1Jul3121,000???? D. Concealment The companys president is concerned about the accuracy of the income statement. B. The policy's cash value grows as the investments grow. &\begin{array}{l|lr} b) The policy will not be affected. -its a rider Upon policy delivery, the producer may be required to obtain any of the following EXCEPT States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. Pro rata liability applies. B. Twisting _______ pays dividends to the stock holder. Which of the following statements about limited-payment life insurance is true? An insurer that was incorporated in a different state that it is doing business in. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? 4) Joint-Life policy(business part) Insurance policy of 2 or more insured is always the borrower & the beneficiary=lender ch 7 Flashcards | Quizlet All of the following statements about term insurance are trueEXCEPTa. Involuntary Risk 4. 5)Survivorship Life Policy (policy holder pays themselves). (a) blended family. All The statements made on the application are called ______? Retention, Avoidance, and Transfer are all _________________. Annual income B. b. 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 c) Premium accountability. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. A. The cash value of availability to the policyowner D. Term life. d. The total of all cost sheets completed during the month is $628,880.00. The issuance of a binder is the result of the ___________________ of an offer. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. Premiums are not tax deductible as a business expense. Premiums are taxable to the employee A. \end{array} d) The policy can be reinstated by paying back all policy loans and premiums. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. C. Risk \end{array} 2)Straight Life What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? A) the agent. 4)decrease premium paying period. B. 1. a) The policyholders or stockowners of the company What kind of penalty would the IRA owner pay? C. Premiums are tax deductible by the key employee Solved 55. All of the following statements regarding | Chegg.com d) Older. -Take it or leave it contract Prior to October 2017, the company had been profitable every month. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet 4)underwriting is complete \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ may not be altered by an agent and must clearly state that it is not part of the contract. D. Premiums are tax deductible as a business expense, B. 3) Retaining the risk. D. Unilateral Contract An agent has authority to do all of the following, except: A. Countersign insurance contracts C) common stock 4. saalt menstrual disc how to use - evcc-estheticstraining.com Life insurance proceeds & &&\textbf{ Quarter } \\ 1) Family Maintenance(breadwinner) Premiums are not tax deductible as a business expense 2)people under the influence of drugs or alcohol The minimum FREE LOOK period is how many days? e. The total of costs recorded on all sales invoices for the month is$654,052.00. Whats the "take it or leave it contract"? Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} a) Small employers DONT PICK IT!!!!!! B. B. Effects of climate change - Wikipedia Correct: C. Consideration. d) Graded Premium. The policy is a contract of adhesion. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. \textbf{For the Month Ended October 31, 2017}\\ 2) form of interest sensitive life insurance(current market conditions influence the cash value) B. Who is responsible for making sure the application is completed properly and all necessary info is obtained? (a) matured. &\text { Inventory }\\ c. Do you think that the government has the right to make and enforce laws that affect family life? B. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. D. The policy is a bilateral contract don't pick binding receipt at all on test. -it pays the double indemnity, 1)accident occurs, person must die within 90 days Limited-Pay Life & Single-Premium Policies? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. &\text { Rental Class }\\ Liquidity in life insurance refers to availability of cash to the insured through cash values. C. Buy-Sell agreements are normally funded with a life insurance policy b) 10% for early withdrawal d) Limited pay. . Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. Being young and healthy means you can skip out on health insurance. If a change in the application is necessary what is required? -guaranteed/fixed/level payment, -Immediate "annuitization phase" (c) two-income earner family. (economy). -pay for certain time and stop Chapter 14/1: Group Health Insurance Flashcards | Quizlet (a) I only (b) II only 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. 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. (6). 3. c) Helping insureds to file claims D) the minor in a juvenile policy. b) Fixed income c) Guides describing company financial integrity Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. B) Passing examination with 75% or higher score. -paying for certain time and stop. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? C. Certain Risk (d) Premiums increase at an increasing rate upon renewal. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ (b) current assumption whole life. 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. 2) Binding Reciept. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. d) 15 years. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. C) purchasing family term insurance. Business partners have an insurable interest in each other \hline && \text { Jul 31 } & 111,000 1) cash value earns interest Statements in the application that are guaranteed true but later found to be false may result in what? \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ 4)settlement options, 1)stand alone policy All of the following statements are TRUE concerning Debtor Groups EXCEPT A. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. A peril For example, a claim will be paid only is there has been a covered loss. 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. A contract between insurer and policy holder. The following information is taken from the records of Hammond on November 30 of the current year. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. (3), WHat is the difference between universal and whole life policies? A. contract of adhesion C. Solicit applications on the insurer's behalf Difference between Universal Life Insurance and Whole Life Insurance? When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. b) Fluctuates. (2), 1)HIPPA After examining other manufacturing cost data, you have acquired additional information as follows. Yes, all T-mobile insurance plans cover water damage. Hospital bills of the key employee A. Only one party is giving a legally enforceable promise- A one-sided contract is what? 1)Domestic Insurer 2. (Hint: Take a look at the Theory of Reasoned Action.). Exclusion Categories CashJul1Jul315,500???? B. Candidate List of substances of very high concern for Authorisation The correct answer is: Premiums are typically paid by the lender. James purchased yearly renewable term insurance. The policyowner has a variety of options for investment of the cash value. 2)interest sensitive C. Insured's annual expenses -the applicant must always initial the change 3)premium is collected &\text { Retained Earnings }\\ b) Adjustable life Cause of potential loss to property such as fire, windstorm, hail, flood, etc. Medical exams provide information on current health. - Limited Pay Life 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). Estimated direct labor costs for next year are$440,000.00. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Contract or form of ownership is a ______________? The cash value available to the policyowner (3), 1)bank trust officer considers Lloyds of London an Alien insurer Does T-Mobile Insurance Cover Water Damage? All of the following are true of insurance EXCEPT It transfers risk. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. b. persistent fear of germs Misrepresentation, Concealment and Deceit are all examples of what? D. Represent the insured's interest 3,000, AccountsreceivableJul121,000???? 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. -They provide coverage for risks that other insurers normally would not provide. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? 4)explain policy & provisions b) Promptly forwarding premiums to the insurance company 4)Explain the policy and its provisions Free Chapter 1 - Tests.com 2)Decreasing Term &\begin{array}{cr|} Example: company that is incorporated in NJ and sells in NJ. II. Your device, make and model. A. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. b. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. (b) Most policies can be renewed without evidence of insurability. 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. A policy summary usually includes all the listed information, and must be delivered along with a new policy. The CAS number shown in an entry is typically . (d) paid-up. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. 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. A false statement in the application for insurance is_____________. (b) Face amount decreases during the policy period, but premiums remain level. 3)substandard risk. b) Policyholder (receive dividends & the right to vote). Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? 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 ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ A securities license. A. Permanent Insurance have 3 words in common, what are they? All of the following statements are true of liability insurance, EXCEPT 3)Increasing term adds face value. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. B. Terms that apply to the insurer not the applicant. What insurance concept is associated with the names Weiss and Fitch? 2)Increase the face value Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. A conditional or binding receipt is given when an applicant does what? The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. \hline \text { Jul 31 } & 25,500 4 All of the following statements about term insurance are true EXCEPT What are the 3 characteristics of a Mutual Insurance Company? An insured becomes disabled at age 22 and can no longer work. Pure risk What type of insurer has no capital stock? Conditional contract means the policy holder does what? \hline \text { Jul 1 } & 22,000 \\ -it is a type of Rider -immediately considered fully paid up The following are all true regarding risk management, except: A. They become permanently disabled What is a statement in the application guaranteed true in all respects? True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles Which is generally true regarding insureds who have been classified as preferred risks? Which of the following is the basis for a claim against an insurance policy? Solved All of the following are true for indemnity insurance | Chegg.com A. To sell variable life insurance policies, an agent must receive all of the following EXCEPT This method of estimating . B. A. Foregin Causes of the 2000s United States housing bubble - Wikipedia Can term insurance be both renewable and convertible? True or False: Under the Financial Responsibility Law, you are required 3)low premiums. C. A surplus lines broker deals with direct writing companies only O d. -But pays you interest, 1)Fixed annuity (c) expired. 2)quarterly The insurance company may not void the insurance policy for which of the following reasons? According to the entire contract provision, what document must be made part of the insurance policy? A Contract that binds only one party to future performance, is a (n): A. Social Security is designed to provide a base of economic security B. 3)semi-annual Their premiums are lower What constitutes the acceptance of an offer? Which of the following is usually true of a participating life insurance policy? d) All of the above. A. C. Hazards IRS classification of a policy that is overfunded? D. Funding against general company financial loss What are the two options in death benefit options? Get more out of your subscription* Access to over 100 million course-specific study resources See Answer. 5)coverage begins 1. (d) Most policies have a CV that is refunded when coverage ceases. A. B) bonds 3. By William Lb Qtjetjx, Author of . (a) present value of future benefits and the present value of future premiums. Predicted needs of the family after the insured's death (c) They decrease at a constant rate. All of the following are true of negligence, except: - AZanswer \end{array} \\ (a) They increase at an increasing rate. (c) The number of times the coverage can be renewed is limited. Whoso. \hline \text { Jul 1 } & 5,500 &&\\ A. \end{array} \\ d) Paid-up option. Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. ADD( Accidental death and dismemberment??? -Staged intervals An agent and an applicant for a life insurance policy fill out and sign the application. compulsion? The concept that the insured should not profit from an insurance transaction is called what? The money in a savings account When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? What characteristic must an annuity have if it is used to accumulate funds in an IRA? All of the following would be considered to be rebating EXCEPT ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" \hline && \text { Jul 1 } & 65,000 \\ Which of the following would provide an underwriter with information concerning an applicant's health history? A SEC registration. (b) II only -policy holder adheres to it 4)defined contribution plans. Which of the following about a VUL insurance policy is (are) true? b) Copies of illustrations and application \end{aligned} A key person insurance policy will pay for costs of running the business and replacing the employee. Term. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. 2)no cash-value Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? All of the following are true of negligence, except: a. This is called. Warranty Life insurance prodceeds b) The elderly Daycare is considered to be among these expenses. 3)Alien Insurer. B. Nonadmitted B. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. 1) insured gets higher amount
