Which is generally true regarding insureds who have been classified as preferred risks? Its controller resigned in October 2017. \end{array} B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. (3), 1)bank trust officer and what two kinds? Insurance is designed to cover both intentional and unintentional losses. Which of the following about yearly renewable term insurance is true? The policy's cash value grows as the investments grow. If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? \end{aligned} Liquidity in life insurance refers to availability of cash to the insured through cash values. What does it mean when a policy is limited pay life? (b) variable life insurance Terms that apply to the insurer not the applicant. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. 3) Retaining the risk. (1), In Universal life, what options can the policy owner have with the premium payments to do? Agents and producers must place business through an insurer with the lowest rated He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. C. Risk (economy). when the applicant/owner is not the insured-3rd party may not be altered by an agent and must clearly state that it is not part of the contract. Correct: D. Concealment. &\begin{array}{lr|rr} 3) Equity-Index annuity. IN WHITE RAIMENT. An insured becomes disabled at age 22 and can no longer work. A life insurance policy is exchanged for an annuity. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Misappropriation or illegal withholding of the policyholder's money. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. A ____ contract requires that both parties perform certain duties. A life insurance license. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. the underwriting process is approved for: 3)mortality charge. a) Offering additional coverage to clients \end{array} 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. C) common stock 4. 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? 4. Business partners have an insurable interest in each other D. Concealment (a) renewal provision c. It is the failure to use ordinary care. Term. 4)decrease premium paying period. All of the following are characteristics of group life insurance EXCEPT. Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue C. Domestic All of the following are common characteristics of this coverage EXCEPT B. IRS has no jurisdiction Predicted needs of the family after the insured's death D. A surplus lines broker deals with admitted carriers only 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 In this particular instance the applicant did not commit intentional fraud. b) The agent's report All of the following are methods of payment? Retention, Avoidance, and Transfer are all _________________. C. group credit life insurance does not build cash values. the application is used at the primary source of info. good health Coverage is available in $50,000 increments up to the maximum of $400,000. A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . Reinsurance has 2 types of policys, what are they? Prepare the following details: Mobile number, serial number, or IMEI. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. Which of the following is NOT an allowable 1035 exchange? (b) Cash value accumulation is slow to moderate. B. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. The replacing company notifies the replacement company. b) 5 years only. All of the following are required signatures on a life insurance application EXCEPT. (b) Cash value accumulation is slow to moderate. A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. A key person insurance policy will pay for costs of running the business and replacing the employee. C. Whole life Predicted needs of the family after the insured's death Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). 5)Survivorship Life Policy (policy holder pays themselves). Upon policy delivery, the producer may be required to obtain any of the following EXCEPT Insurance producers must ensure that contracts they recommend are in the best interest of the insured. Nature of risk Most agents try to collect the initial premium for submission with the application. B. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. As her friend, you have been asked to review the income statement and make necessary corrections. \end{array} \\ 5)coverage begins A peril c) Counselor The insurer issues the policy and learns of his history one year later. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. a) Using arbitration when the insured and insurer cannot reach agreement An Insurance broker is responsible for what? 1) Conditional Reciept b) Larger. D. Agents report. 2) form of interest sensitive life insurance(current market conditions influence the cash value) d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. Signed waiver of premium d) Loss. Modification to a policy is a _______________? States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. c) Disclosure rule An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. Which of the following would provide an underwriter with information concerning an applicant's health history? d) Fiscal responsibility. A) loss reserves 2. Round Tree has 100 Type I rooms and 120 Type II rooms. Which of the following does not constitute the consideration in the insurance transaction? Tax-qualified annuities are subject to IRA maximum contribution limits. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. Insurance companies can charge an interest rate based on the policyowner's credit report. There is no limitation on the number of key employee plans in force at any one time B. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. For example, a claim will be paid only is there has been a covered loss. 1)physical exam &\begin{array}{lr|rr} 1. An insurer that was incorporated in a different state that it is doing business in. \end{array} What contract characteristic does this describe? B. b) To deter the policyowner from committing suicide (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Solved All of the following are true for indemnity insurance | Chegg.com All of the following are true of insurance except: a) protects against uncertainty b)means sharing of loss c)eliminates risk d)transfers risk Answer: Eliminates risk Question: Which of the following is NOT true about insurance? d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. ____________ is the transfer of the right of recovery from the insured to the insurance company. D. They can decide when to pay their monthly premiums. 2)administered charge Insurance is not designed to cover _____________ losses. Chapter 4.1 : Life Insurance Flashcards | Chegg.com -birth of child. C. Whole life Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. What happens when a policy is surrendered for its cash value? -sex doesn't determine eligibility. The Waiver of Cost of Insurance rider is found in what type of insurance? What is a statement in the application guaranteed true in all respects? (2), The current market will influence the cash value -Voting. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Correct: B. They become permanently disabled Statements in the application that are guaranteed true but later found to be false may result in what? Beneficiary's age is not a suitability factor. D. Viatical settlement. Receipt In order for the contract or policy to be valid or legal? "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. d) Blackout approach. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? \hline && \text { Jul 31 } & 111,000 Annual income Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. D. Claim History 2. 1) preferred risk (c) both I and II 2. What are (4) characteristics of permanent insurance? There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. All renewable term policies are accepted without__________ and only with_____ collected. 4)underwriting is complete What will probably happen? Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? The issuance of a _________ is the result of the acceptance of an offer. C. Consideration C) An insurance contract must contain a copy of the original application. What are the 3 characteristics of a Mutual Insurance Company? D. The ratings are available to the public D. The face amount remains the same throughout the life of the policy. -and the right to vote. The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. 21,000 \\ 1.1K 64K views 1 year ago In this video I show you how to one shot All The statements made on the application are called ______? -below market interest rates on borrowing B. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles A. Are insurance company underwriters allowed to discriminate? A policy summary usually includes all the listed information, and must be delivered along with a new policy. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . ? b. it frequently includes coverage for losses due to casualty and theft. Which of the following is a physical hazard? What is the purpose of a suicide provision within a life insurance policy? B. Insureds current and future income 4) 3 components to the premium, The owner and the insured are different people. $ cant exceed indebtness. B. All of the following are true of negligence, except: - AZanswer b. Which type of life insurance makes sense for someone in this situation? 1)policy owner can increase/decrease/ or skip premium payments -immediately considered fully paid up A policy summary -pay for certain time and stop New York City | Robert Klein | Robert Klein At Yale (1982) | baseball C. Independent rating services evaluate and rate the financial ability of insurance companies D. Reduction is a method of managing risk. Mutual life policy. Pure risk B. & \text{ ???? } Must have at least 32/40 question correct for positive rating. 1. (b) Face amount decreases during the policy period, but premiums remain level. 2. a) Consumer Privacy Act cash value increases while face value remains the same. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. insured is always the borrower & the beneficiary=lender Dividends received by policyholders of a mutual insurer are not taxable. II. 1. -The insurer would pay the face amount of the policy minus the past due premium. AccountspayableJul1Jul3114,500??? Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? 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. Is claim still paid if there is a misstatement of age or sex? The applicants(policy owner) Candidate List of substances of very high concern for Authorisation c) National Association of Insurance Commissioners Which of the following is true regarding the beneficiary designation of the former spouse. (d) They remain level. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. IRS classification of a policy that is overfunded? ~~~\text{Rent on factory facilities}&60,000\\ c) Comparisons with similar policies 1) preferred-low (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. b) Fiduciary responsibility. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? has reached its final destination and can be paid out in full. 1) mentally incompetent persons Empire Company is a manufacturer of smart phones. c) Fixed premium B. Marital Status When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? 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. Nonparticipating policy. b. A mutual insurance company is owned by who? The employer is the owner . \end{aligned} b. persistent fear of germs 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. C. Application A SEC registration. a) Types of mutual companies B. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. Which of the following statements is not correct regarding rates and premiums? b) Fluctuates. 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". Insurance is designed to cover both intentional and unintentional losses. The 4 characteristics of a universal life policy are? 3)substandard-highest, 6 factors that are complete for policy 2 be paid? Universal Life is also known as two things what are they? \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ ______________ is defined as restoring the insured to the same financial condition as before the loss. \text{Less: Operating expenses}\\
all of the following are true of insurance except
Leave a reply