b) The elderly Receipt
What is a statement in the application guaranteed true in all respects? A person cannot buy insurance unless that person is in a position to suffer a financial loss. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D. Offer (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Hospital bills of the key employee \end{array} d) Producer. Costs of training a replacement Insurance is designed to cover both intentional and unintentional losses. \textbf{Income Statement}\\ Which of the following best describes a surplus lines broker? (must exist at the time of application). c) Increases annually. 5)coverage begins
Which type of risk involves the possibility of loss or gain? B. IRS has no jurisdiction - Limited Pay Life
Appoint a solicitor as his or her representative 2)explain any ratings
D) the minor in a juvenile policy. Which of the following is the basic source of information used by the company in the risk selection process? D. Workers compensation. A life insurance license. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. &\text { Accumulated depr.-equipment }\\ The concept that the insured should not profit from an insurance transaction is called what? Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded
\text { Type II } & \$ 20 & \$ 30 & \$ 40
All of the following statements concerning coinsurance are true, EXCEPT Life Insurance Basics Flashcards | Quizlet 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 type of policy does the insured most likely have? C. They can borrow higher amounts off of their policies Which of the following is TRUE regarding assignment rights for . O d. When does the grace period begin and how long is it? M327.
Flashcards - WA Life Law Practice Exam - FreezingBlue Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. (b) variable life insurance What is NOT invested in the stock market but pays you interest? a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. 2)FCRA(fair credit reporting act) checks MIB report. \underline{\hspace{40pt}}. B) The plan is funded by permanent insurance only. IN WHITE RAIMENT. 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. d) Policy dividends. b) Coverage ends and the policy cannot be reinstated. . By William Lb Qtjetjx, Author of . Round Trees management makes a forecast of the demand by rental class for each night in the future. d) Military personnel. Compensating executives Policyholders D. Concealment C. Certain Risk c) Extended term -Prepays portion of face amount if diagnosed with terminal illness. An underwriter will consider each of the following factors when evaluating a risk, except: A. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. The face amount decreases as the amount owed on the mortgage decreases. Concerning insurance, the definition of a fiduciary is The applicant accepts the invitation by paying the ___________. D) the minor in a juvenile policy. Why?". A. A Contract that binds only one party to future performance, is a (n): A. Rates Breach of warranty II. 1) preferred risk
Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? 3)substandard risk. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. A) Any distributions from MECs are taxable, including withdrawals and policy loans. See Page 1. B. Term life insurance provides the largest amount of coverage for the lowest amount of premium.
Life Insurance Flashcards - Cram.com 14,500 \\ (b) They increase at a decreasing rate. (a) I only (b) II only 3. D. Speculative Risk S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. 2)administered charge
Which of the following statements concerning buy-sell agreements is true? d) Buyer's Guide. Waive the premium if the INSURED becomes totally disabled. a. whole life paid at 65 3)Alien Insurer. ~~~\text{Selling and administrative salaries}&75,000\\ The parties in the insurance contract consist of whom? Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? -policyowners right provision
17,000, InventoryJul122,000???? Their premiums are lower An insured becomes disabled at age 22 and can no longer work. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same
It is most appropriate when an insured needs lifetime protection. 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. Which nonforfeiture option provides coverage for the longest period of time? 3) Increasing Term. 4. insurable interest must exist. A. A mutual insurance company does not have what? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. 1) coverage is permanent
\end{array} \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ Get more out of your subscription* Access to over 100 million course-specific study resources -insured can stop paying premiums at certain age or after a period of time
A key person insurance policy can pay for which of the following? cheating. b) State attorney general Most insurance policies contain a specific limit that an insurer will pay for a single claim. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. An Insurance broker is responsible for what? D. Funding against general company financial 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. RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. c. It is the failure to use ordinary care. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds B. B. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. compulsion? (c) both I & II (d) neither I or II. 4. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Tom and Nancy Boyle provide financial support for their two children. A surplus lines broker deals with direct writing companies only The debtor does not have an insurable interest in the life of the lender. Joe, Larry, and Curly own a small business. 1)increase cash value
In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? 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. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Yes, all T-mobile insurance plans cover water damage. C) the proposed insured. An Applicant inaccurately representing information on the application is guilty of: A. She meets the definition of total disability under Social Security. \hline \text { Jul 1 } & \begin{array}{r} \end{array} \\
Candidate List of substances of very high concern for Authorisation Suitability It has cash value that is invested into the stock market through mutual funds/securities. \end{array}
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. Delivery receipt. Consumer report \hline & \text { Jul 1 } & \begin{array}{r} (c) The number of times the coverage can be renewed is limited. A key person insurance policy will pay for costs of running the business and replacing the employee. -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? 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. Limited-Pay Life & Single-Premium Policies? What is the primary source of info for the underwriting department to determine insurability? 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. b. The County is administered by a five-member Board of Supervisors who are elected for four-year terms -provides income for retirement
\end{aligned} When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? d) Performing reviews of insured's coverage. d) Fair Credit Reporting Act. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Involuntary Risk 2)quarterly
It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. B) A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? Quarterly working capital levels for your firm for the next year are included in the following table. How has the Aswan High Dam affected the lives of Egyptians? D. Effect of inflation on income over time. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. The failure to disclose known facts is what? and is NOT a party to the contract. Permanent Insurance have 3 words in common, what are they? Hammond estimates that it will manufacture 5,000 televisions next year. \text{Sales revenue}&&\$780,000\\ Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. The employer is the owner . D) They must be signed by both the Producer and the applicant. -the applicant must always initial the change
b) Universal Life Upon policy delivery, the producer may be required to obtain any of the following EXCEPT 25,500, AccountspayableJul114,500???? What are two reasons that people deposit money in banks? a) Offering additional coverage to clients (b) The face amount of the policy is paid if the insured lives to age 65. The corporation also helps detect and prevent insurer impairments. The primary purpose of buying an annuity is? O c. The policyowner has the option of investing the cash value in several investment accounts. Correct: D. Concealment. 2)can be sold as a rider to a whole-life policy. 1) cash value earns interest
D. Gender. C. Tax Status It is used to help adequacy and equity in rates. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. II. The purpose of an estate clearance fund is to pay all of the following EXCEPT. When applicant is not the insured ______________ must exist. 1 / 25. A. -pay for certain time and stop
Since they may receive a dividend (not guaranteed), such policies are known as participating policies. a) Types of mutual companies
Solved All of the following statements about professional - Chegg You cannot sell a variable policy without what? 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. the underwriting process is approved for:
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. When a New York insurance agent or broker advertises services, he/she must list the full name of the insurer and the name of the city, town, or village that houses the principal office. An insurer that is incorporated in the same state that they are doing business in is a_____________.? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. ___________ is the persons whose death triggers payment. (a) renewal provision B) the applicant. Explain your answer. All of the following would be considered to be rebating EXCEPT Correct: B. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. b) 5 years only. Economics questions and answers. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. a) Small employers Who gets $$money when the policy holder dies? Carl would like to purchase life insurance. The cost of a living rider is calculated by what? All of the following are methods of payment? database of previously life and health insurance applications. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. ~~~\text{Advertising expense}&90,000\\ the application is used at the primary source of info. C. A husband or wife has an insurable interest in their spouse The companys president is concerned about the accuracy of the income statement. D. Reduction is a method of managing risk. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. A contract between insurer and policy holder. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. C. Concealment Which of the following is an example of liquidity in a life insurance contract? ? D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. A. contract of adhesion
Value-added tax - Wikipedia 3)riders & exclusions
A. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. A policy summary usually includes all the listed information, and must be delivered along with a new policy. The insurer issues the policy and learns of his history one year later. &\text { Rental Class }\\ a) Because the insured is currently not a drug user, his policy will not be affected. Credit life What will probably happen? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ 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. -If the insured dies, the policy payed out the PRINCIPAL SUM
It is used to pay off the balance on the mortgage. 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. Fraud A. (a) The insurance provides protection for a temporary period of time. All of the following statements concerning coinsurance are true, EXCEPT . C. Medical Background Insurers use this law in order to predict certain types of losses and set appropriate premiums. C. it is often experience-rated, with premrums based on expected losses. Can term insurance be both renewable and convertible? When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. (c) term insurance A whole life insurance policy is exchanged for a term insurance policy. A whole life insurance policy is exchanged for a Universal life insurance policy. 1)premium payment
B. Correct: A. &\text { Retained Earnings }\\ Rating codes are assigned to show financial strength or weakness of each company rated A. The policy's cash value grows as the investments grow.
Unit 27 Flashcards by Lauren Pulido | Brainscape When an applicant pays the initial premium the agent will give them a what? The issuance of a binder is the result of the ___________________ of an offer. C. Loss of personal income &\text { Cash }\\ The ___________ controls all rights of the contract.
ch 7 Flashcards | Quizlet (d) They remain level. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase.
True or False: Under the Financial Responsibility Law, you are required &\begin{array}{lr|rr} Beneficiary's age When an agent collects the initial premium from the applicant, the agent should issue the applicant a. ~~~\text{Rent on factory facilities}&60,000\\ Who is responsible for making sure the application is completed properly and all necessary info is obtained? A _______ __ is the additional premium needed to get covered with high or substandard risk. d. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance.
Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue 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. This method of estimating . To sell variable insurance what must you have? 3)premium is collected
(a) Evidence of insurability is not required to renew the coverage. Non-Participating (stock) Life Insurance Policy. Predicted needs of the family after the insured's death How much life insurance should Sam advise . C. Department of State
6/1 Quiz: Group Life Insurance Flashcards | Quizlet \end{aligned}
B. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. A. All of the following information about a customer must be used in determining annuity suitability EXCEPT c) Term life Rates are considered inadequate when they do not cover projected losses and expenses. 2)Decreasing term(premium is low) declining face value
EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. 3)increase the length of coverage
A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. \end{array} The correct answer is: Premiums are typically paid by the lender. B. this insurance is often written in connection with automobile loans. 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?