(b) reduced. 1) Avoiding the risk 4)underwriting is complete c) Conditional Term life insurance provides pure death protection. (b) The face amount of the policy is paid if the insured lives to age 65. The policy does not go into effect until the premium has been collected. 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. c. thoughts of harming a neighbor \end{array} 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. Cash values can be borrowed at any time Chapter 11 - Life Insurance Flashcards | Quizlet b) Cost of living rider. B. 2)can be sold as a rider to a whole-life policy. (a) renewal provision (b) They increase at a decreasing rate. D. Delivery receipt. 4)Explain the policy and its provisions 1) Competent Parties B) The parent is responsible for the premium. -If the insured dies, the policy payed out the PRINCIPAL SUM There is no limitation on the number of key employee plans in force at any one time. 3)Consideration A. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? Jul3117,000\begin{aligned} To sell variable insurance what must you have? II. 1)Level Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Only one party is giving a legally enforceable promise- A one-sided contract is what? According to the entire contract provision, what document must be made part of the insurance policy? (b) variable life insurance Conviction of a felony involving moral turpitude. What is the primary source of info for the underwriting department to determine insurability? 3)Alien Insurer. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date C. Consideration paperspast.natlib.govt.nz Which of the following about the use of ordinary life insurance is true? What is the MIB? Whole life policy. -usually mutual fund security & &&\textbf{ Quarter } \\ Value-added tax - Wikipedia Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. 4)annual, Everytime you have a payment due. 3)Rider expires 60,65,75. &\text { Accounts payable }\\ (a) I only (b) II only Surplus lines broker deals with admitted carriers only An Applicant inaccurately representing information on the application is guilty of: A. -Can't lose value c) Counselor B. If the corporation collects the policy benefit, then 4 All of the following statements about term insurance are true EXCEPT Occupation Which of the following is true regarding the beneficiary designation of the former spouse. 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. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. (b) tax-free exchange provision C. Waiver of Estoppel \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ D. Aleatory contract 1) mentally incompetent persons d. falsely believing that a spouse has been -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? Rating codes are assigned to show financial strength or weakness of each company rated 3)MIB=records of all previous insurances they had. (d) Most policies have a CV that is refunded when coverage ceases. -guarantee a stream of income to the person purchasing it known as the annuitant. ch2 Flashcards | Quizlet 6/1 Quiz: Group Life Insurance Flashcards | Quizlet Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} ____________ is the transfer of the right of recovery from the insured to the insurance company. 2)Family Income(decreasing term-policy) D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. What are some of the questions asked on the application to determine the premium and risk classification of the insured? D) They must be signed by both the Producer and the applicant. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? An annuity is exchanged for another annuity. 2)Foreign Insurer D. The benefit is received tax free. All of the following statement regarding credit life insurance are true, except: A. credit life insurance may be written on either and individual or group basis. D. The benefit is received tax free 2)standard-average C. Tax Status D. Accident If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would it be considered in New York? After everything is signed & premium is collected What does the agent give to the policy holder? Premiums are not tax deductible as a business expense Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? d) Fair Credit Reporting Act. 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. (c) both I & II (d) neither I or II, Diane is a single parent. b. -paying for certain time and stop. Which of the following statements concerning buy-sell agreements is true? Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Who might receive dividends from a mutual insurer? Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. -The insurance dept. Chapter 1- General Insurance Flashcards | Quizlet Reinsurance has 2 types of policys, what are they? What characteristic must an annuity have if it is used to accumulate funds in an IRA? 5)Explain when coverage begins Their premiums are lower c) Copy of the original application A conditional or binding receipt is given when an applicant does what? b) The elderly A debtor has insurable interest in the life of a lender This method of estimating . Universal Life is also known as two things what are they? B) the applicant. What is the purpose of a suicide provision within a life insurance policy? (a) limited-payment whole life insurance What are the two options in death benefit options? Consumer report 1)cont. (b) Cash value accumulation is slow to moderate. Predicted needs of the family after the insured's death are used in the needs approach. 1)Statement of continued good health A mutual insurance company does not have what? The following are all true regarding risk management, except: A. Flashcards - PSI online exam Life Insurance - FreezingBlue PracticeTest Flashcards by Gabriel Martinez | Brainscape When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? Retention, Avoidance, and Transfer are all _________________. D. The flexible premium. Weiss and Fitch are two of these services, although there are more. Group Life Insurance Flashcards | Chegg.com B. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. An__________ represents the insurer. cash value increases while face value remains the same. All of the following statements about the settlement of a claim are true EXCEPT. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. \text{ ???? } C. Department of State c) 15% for early withdrawal Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? &\begin{array}{lr|rr} A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. B. Nonadmitted \end{array} A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. II. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 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. B. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer (c) They decrease at a constant rate. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. There is a limit for a withdrawal and the insurer charges a fee. Medical exams provide information on current health. Group life insurance is most often issued as guaranteed annual renewable term. 2) Transferring the risk All of the following statements about ordinary life insurance are true EXCEPT. 1) preferred-low All of the following are methods of payment? A key person insurance policy can pay for which of the following? C. The benefit is received as taxable income When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. Rates are considered inadequate when they do not cover projected losses and expenses. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. C) purchasing family term insurance. 3)Explain any riders or exclusion Solved All of the following statements about universal life - Chegg D. Solicit applications on insurer's behalf c. continuous premium whole life c. and is NOT a party to the contract. It is used to pay off the balance on the mortgage. Which type of life insurance makes sense for someone in this situation? Various life insurance programs for people who served in the military are called ______________? C. Concealment Can term insurance be both renewable and convertible? When an applicant pays the initial premium the agent will give them a what? Predicted needs of the family after the insured's death D. Gender. (d) annual premium and the annual policy dividend. c. Manufacturing expense accounts and their balances for the month are as follows: DepreciationExpense-FactoryEquipment$5,770.24MiscellaneousExpense-Factory$13,780.48DepreciationExpense-Building2,822.40PayrollTaxesExpense-Factory43,736.00Heat,Light,andPowerExpense9,055.20PropertyTaxExpense-Factory6,088.32InsuranceExpense-Factory1,505.28SuppliesExpense-Factory18,063.36\begin{array}{lrlrr}\text { Depreciation Expense-Factory Equipment } & \$ 5,770.24 & \text { Miscellaneous Expense-Factory } & \$ 13,780.48 \\ \text { Depreciation Expense-Building } & 2,822.40 & \text { Payroll Taxes Expense-Factory } & 43,736.00 \\ \text { Heat, Light, and Power Expense } & 9,055.20 & \text { Property Tax Expense-Factory } & 6,088.32 \\ \text { Insurance Expense-Factory } & 1,505.28 & \text { Supplies Expense-Factory } & 18,063.36\end{array} An agent and an applicant for a life insurance policy fill out and sign the application. Arrest History. What are (4) ways annuities are classified? C. Hazards When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? Solved All of the following are true for indemnity insurance | Chegg.com Eight Summoning Eyes need to be placed to summon the Ender Dragon and players need to have 450 Dragon Weight to have a chance of getting the sword. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. It has cash value that is invested into the stock market through mutual funds/securities. An applicant is denied insurance because of information found on a consumer report. \hline && \text { Jul 31 } & 111,000 Insurance transfers risk but it does not__________ risk. A mutual insurance company is owned by who? 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? All renewable term policies are accepted without__________ and only with_____ collected. c) Coverage ends but the policy can be reinstated at any time. A. A policy summary a) Aleatory Is There An Objective Morality? IAI TV 1)Whole Life D. Viatical settlement. (c) both I & II (d) neither I nor II. d) Living need rider. Who is not a party to the contract and receives the benefits when the insured dies? Which of the following is a financial rating service? The person who receives the benefit when insured dies. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. C. Domestic a) Indeterminate Premium B. Insureds current and future income C. Payment of premium \text{Sales revenue}&&\$780,000\\ Use the indirect method. Free Chapter 1 - Tests.com a) Because the insured is currently not a drug user, his policy will not be affected. The concept that the insured should not profit from an insurance transaction is called what? Which of the following types of insurance policies would perform the function of cash accumulation? Any gain in the policy's cash value is . Accidental Death Benefit B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. $ cant exceed indebtness. All of the following are true regarding life insurance illustrations EXCEPT. \hline \text { Jul 31 } & 25,500 Correct: B. The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. Most policies can be renewed for additional periods without evidence of insurability. a. 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. If the insured commits suicide after the 2 year period, the policy will pay the death proceeds to the designated beneficiary the same as if the insured had died of natural causes. (c) conversion provision 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), WHat is the difference between universal and whole life policies? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Who assumes control over an insurance company's funds and management if it becomes insolvent? Their premiums are lower c) Disclosure rule The minimum FREE LOOK period is how many days? b) The policy will not be affected. Which of the following statements is not correct regarding rates and premiums? \end{aligned} A. contract of adhesion ? A. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. (a) present value of future benefits and the present value of future premiums. 3)substandard risk. -Follows all conditions of contract & pays premium, -insurer says how policy works c. It is the failure to use ordinary care. 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. d) Older. 2)people under the influence of drugs or alcohol a) To limit the insurer's liability after the 2 year waiting period All of the following characterize term life insurance, EXCEPT: Select one: a. You cannot sell a variable policy without what? (economy). Appoint a solicitor as his or her representative What is the primary source of info used to determine insurability by the underwriting department? What constitutes the acceptance of an offer? 2)non-qualified plans The Terrorism Risk Insurance Program is administered by which of the following Federal entities? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Which of the following is NOT an example of a business use of Life Insurance? 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. d) The Guaranty Corporation. don't pick binding receipt at all on test. Estimated direct labor costs for next year are$440,000.00. . (d) They remain level. Must have at least 32/40 question correct for positive rating. 1. There is a minimum guaranteed interest rate on all sub-accounts. 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. Funding against financial loss caused by the death of a key employee &\begin{array}{cr|} D. Funding against general company financial loss. B. Misrepresentation Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. c) The policy will be voided. O c. The policyowner has the option of investing the cash value in several investment accounts. What must exist at the time of the application? (b) II only A. C. State Education Waiver Premiums are taxable to the employee D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. C. Premiums are determined by age sex and occupation of each individuals certificate holder. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. 1)absolute assignment-all rights are assigned \end{aligned} Which of the following statements about universal life insurance is true? Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. (b) Most policies can be renewed without evidence of insurability. a) Universal life Life Insurance Basics Flashcards | Quizlet B) They illustrate the nonguaranteed elements of the policy. 10 year level term A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights good health b) Failure to promptly settle a claim when liability has been clearly established the underwriting process is approved for: Healthcare in the United States - Wikipedia 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. -ages 25,28,34,37,40 Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? a) Withdrawals are not taxable. -low commissions &\text { Inventory }\\ b. it frequently includes coverage for losses due to casualty and theft. The 4 characteristics of a universal life policy are? -it pays the double indemnity, 1)accident occurs, person must die within 90 days B) bonds 3. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. C. The insured may retain part of a risk through deductibles. C. The insurer is always required to pay the . Cause of potential loss to property such as fire, windstorm, hail, flood, etc. Foreign. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. After insurer makes an offer, what must the applicant do? Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. B) The plan is funded by permanent insurance only. O d. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? a) Using arbitration when the insured and insurer cannot reach agreement 4. Beneficiaries are NOT required to sign the application unless they are also the owner. B. Which risk management type is shifting the risk of loss to a larger homogeneous group? \underline{\hspace{40pt}}. (c) PV of the family's share of a deceased breadwinner's future earnings. The shifting of risk of loss to a larger homogeneous group is known as what? (D The employer is the owner, payor and beneficiary of the policy. (a) Evidence of insurability is not required to renew the coverage. c) Misrepresentation \end{aligned} c) Accelerated benefit rider. b) Fixed income A. c) Smaller. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. All of the following statements are true of liability insurance, EXCEPT The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} Only the MIB will provide information about an applicant's medical history. All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. Investors become more risk averse. The replacing company notifies the replacement company. (a) Interest is credited monthly to a policy's cash value. The 3 categories of private insurers site of incorporation? 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution

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