D. Concealment -age 100. 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? Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. C. group credit life insurance does not build cash values. D. The flexible premium. (a) They increase at an increasing rate. B. Economics questions and answers. -Follows all conditions of contract & pays premium, -insurer says how policy works 3. D) An agent's report and inspection report provides personal information. C. Funding business continuation agreements He would also like to invest in a mutual fund. a) Tax-qualified A. Which kind of agent enters into agreements with more than one insurer? d) 50% tax on the amount not distributed as required. C. The benefit is received as taxable income -its a rider Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. They keep a high percentage of any interest earned on their policies If applicant is not the insured- then insureds signature is required &\begin{array}{lr|lr} B. b) 5 years only. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. Height Weight and Health conditions. A. D. Alien b) Fiduciary responsibility. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. D. The ratings are available to the public 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? c) Fixed premium Round Tree has 100 Type I rooms and 120 Type II rooms. C. Waiver After examining other manufacturing cost data, you have acquired additional information as follows. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? (d) paid-up. c) Conditional a) Lump-sum approach ? (c) both I & II (d) neither I or II. c) Variable Premium A. signed waiver of premium (Choose from the following options) 3)according to the source of annuity income (a) I only (b) II only 1) Family Maintenance(breadwinner) c) Needs approach The issuance of a binder is the result of the ___________________ of an offer. B. Aleatory contract Jul313,000\begin{aligned} d) Decreases annually. a) Types of mutual companies \hline & \text { Jul 1 } & 55,000 \\ (b) tax-free exchange provision Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. c) A person who handles assets or money belonging to others. Life insurance proceeds Past-due interest on a policy loan is added to the total debt. c. Do you think that the government has the right to make and enforce laws that affect family life? (4), 1)monthly D. Term life. 1) insured gets higher amount Daycare is considered to be among these expenses. \textbf{For the Month Ended October 31, 2017}\\ What (5) Factors for GIO & GIB. whose covered? \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. Annual income 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. 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. Insurance transfers risk but it does not__________ risk. D) Obtaining a bachelor's degree. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Which method makes the most sense for her to employ? 2)when benefits begin All of the following are methods of payment? Exclusion Categories Which of the following is the basis for a claim against an insurance policy? An insured owns a life insurance policy. B. Twisting 2)face amount is set 3)premium is collected 2) profits are returned as dividends Who would be eligible to obtain SGLI? The policyowner has a variety of options for investment of the cash value. B. 2)Explain and collect any ratings Correct: A. Signed waiver of premium (a) renewal provision 1) mentally incompetent persons The applicants(policy owner) Which of the following is NOT an example of a business use of Life Insurance? d) Buyer's Guide. A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. -guarantee a stream of income to the person purchasing it known as the annuitant. B. B. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ B. 1)tax qualified plans Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. What does it mean when a policy is limited pay life? 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. c) Disclosure rule C. Domestic A. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. $ cant exceed indebtness. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. a) Accumulated at interest -it pays the double indemnity, 1)accident occurs, person must die within 90 days (d) indeterminate-premium whole life. B) A fiduciary is a producer who handles insurer funds in a trust capacity. A. C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. . c. It is the failure to use ordinary care. 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". Surplus lines broker deals with admitted carriers only A peril Which of the families below is likely to have the least need for a large life insurance policy? The 7 paytest is used to determine if a policy is a _______? b) The policy will not be affected. A person who negotiates insurance contracts on behalf of an insured. d) Policy dividends. Agent Sam is using the human life value approach to assess Mary's life insurance needs. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. 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? 5)coverage begins Rebating is an unfair trade practice and is regulated by law. If a change in the application is necessary what is required? -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? According to the entire contract provision, what document must be made part of the insurance policy? 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. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. Which of the following statements about endowment policies is true? The applicant accepts the invitation by paying the ___________. After insurer makes an offer, what must the applicant do? How do premiums for yearly renewable term insurance change as an insured gets older? d) Producer. Fraud (c) PV of the family's share of a deceased breadwinner's future earnings. A. C. Hazards The insurer that is transferring the risk to another company is called the ____________ __________. Term life insurance provides pure death protection. DONT PICK IT!!!!!! II. B. 1) the premium amount They become permanently disabled (c) term insurance The cost of insurance protection is referred to as what? The premium is level and guaranteed not to increase. ? C. State Education Waiver Be prepared to justify your answer. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? c) Comparisons with similar policies You cannot sell a variable policy without what? B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. b) State attorney general II. 2)premium gets lower. D. Delivery receipt. (b) II only Terms that apply to the insurer not the applicant. c. Premiums may be raised at renewal d. Group term insurance may cover the . a) Offering additional coverage to clients c) Counselor b) Hazard (3), WHat is the difference between universal and whole life policies? Involuntary Risk b. \hline \text { Jul 31 } & 25,500 2)explain any ratings Cash values are available in whole life policies. What are the temporary needs? The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. Its controller resigned in October 2017. C. A surplus lines broker accepts business only from non- resident agents &\text { Cash }\\ Chapter 11 - Life Insurance. 25,500, AccountspayableJul114,500???? 4)Explain the policy and its provisions S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. \text{ ???? } Most policies can be renewed for additional periods without evidence of insurability. Correct: C. Consideration. C. Buy-Sell agreements are normally funded with a life insurance policy What happens when a policy is surrendered for its cash value? The employer is the owner . (d) endowment insurance, Rachel needs permanent life insurance. d) Tax-deductible. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. -policyowners right provision a) Accepted accounting principal. (c) human life value method A. What are (4) ways annuities are classified? C. Unilateral contract Executive office &\begin{array}{lr|rr} c) An agent offers tickets to a baseball game as an inducement to buy insurance. The policy is a contract of adhesion. Whats the "take it or leave it contract"? -then picks a contract. What type of policy does the insured most likely have? 2)no cash-value Universal Life is also known as two things what are they? 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. (b) reduced. d) The Guaranty Corporation. 2)attorneys -The insurance dept. What is the term for a cause of loss, such as the theft of a car? &\begin{array}{l|lr} All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. A whole life insurance policy is exchanged for a term insurance policy. The following are all true regarding risk management, except: A. B. Rating codes are assigned to show financial strength or weakness of each company rated Concerning insurance, the definition of a fiduciary is What is NOT invested in the stock market but pays you interest? Who assumes control over an insurance company's funds and management if it becomes insolvent? S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. 3)Explain any riders or exclusion I. c) Low-income individuals and families All of the following are true of key person insurance EXCEPT ) The key employee is the insured. Where does group-life insurance come from? Being young and healthy means you can skip out on health insurance. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. 2) premiums do not change database of previously life and health insurance applications. (6). Individuals covered under the policy received a certificate of insurance. (a) Interest is credited monthly to a policy's cash value. Insurance is considered a transfer of risk. (a) I only (a) present value of future benefits and the present value of future premiums. &\begin{array}{r|lr} b) Promptly forwarding premiums to the insurance company D. The benefit is received tax free 3)Minors. Jul3125,500\begin{aligned} b) Copies of illustrations and application A mutual insurer has no stock, and is owned by the policyholders. \end{array} ____________ is a statement that is true to the best of the persons knowledge that is making the statement. -low commissions In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. the underwriting process is approved for: A. 3) Equity-Index annuity. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. (a) I only (b) II only (b) Most policies can be renewed without evidence of insurability. C. Certain Risk 2)administered charge All of the following statements are TRUE concerning Debtor Groups EXCEPT \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ Increasing term B. &\text { Retained Earnings }\\ \hline D) Obtaining a bachelor's degree. Prior to October 2017, the company had been profitable every month. Pure Risk. &\text { Inventory }\\ &\text { Accumulated depr.-equipment }\\ Estimated direct labor costs for next year are$440,000.00. Who represents the insured when dealing with insurance companies? Beneficiary's age is not a suitability factor. A FINRA registration. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. D. Agents report. -tax free accumulation of borrowing. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. (c) both I & II (d) neither I or II, Diane is a single parent. C. Concealment Alex, age 26, purchased a 20- payment whole life insurance policy. (2), The current market will influence the cash value 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? \hline \text { Jul 31 } & 3,000 d) Graded Premium. B. Funding against financial loss caused by the death of a key employee What are the 3 characteristics of a Mutual Insurance Company? b) Reduced paid-up b) A producer who handles insurer funds in a trust capacity. c) Policy loans are taxable distributions. A policy summary c) The policy will be voided. The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. 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 B. Beneficiarys age An insurer that was incorporated in a different state that it is doing business in. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). (b) face amount of the policy and the total premiums that have been paid. C. Solicit applications on the insurer's behalf B. A corporation is the owner and beneficiary of the key person life policy. B. Avoidance 3) Increasing Term. It has cash value that is invested into the stock market through mutual funds/securities. C. A husband or wife has an insurable interest in their spouse 4)underwriting is complete *The insured is diagnosed with terminal & chronicle illness An annuity is exchanged for another annuity. Which of the following is a physical hazard? In addition, they provide financial support for Tom's aged father and Nancy's aged mother. D. Funding against general company financial loss Coverage is available in $50,000 increments up to the maximum of $400,000. The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class.
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