all of the following are true of insurance except

Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. 21,000 \\ A FINRA registration. A ____ contract requires that both parties perform certain duties. 1)temporary Which of the following is the basis for a claim against an insurance policy? A) the agent. C. It's a decreasing term insurance. d) 15 years. *Both not taxable. See Page 1. D. Breach of warranty 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. (Hint: Take a look at the Theory of Reasoned Action.). Quarterly working capital levels for your firm for the next year are included in the following table. 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. \hline && \text { Jul 31 } & 111,000 (b) The face amount of the policy is paid if the insured lives to age 65. Weiss and Fitch are two of these services, although there are more. Correct: B. 2)interest sensitive The premium is level and guaranteed not to increase. Non-Participating (stock) Life Insurance Policy. Beneficiary's age B) The parent is responsible for the premium. b) Conditional receipt c) Misrepresentation 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. D) the minor in a juvenile policy. \text { Type I } & \$ 30 & \$ 35 & - \\ C. The policy is an aleatory contract All of the following are methods of payment? a) Small employers Pro rata liability applies. may not be altered by an agent and must clearly state that it is not part of the contract. The issuance of a _________ is the result of the acceptance of an offer. It does not include breach of contract. Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. 1) insured gets higher amount c) National Association of Insurance Commissioners Who might receive dividends from a mutual insurer? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. a. whole life paid at 65 Jul313,000\begin{aligned} Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. b) Larger. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). when the applicant/owner is not the insured-3rd party When an applicant pays the initial premium the agent will give them a what? Correct: C. Consideration. D. Agents report. a) To limit the insurer's liability after the 2 year waiting period Which of the following statements about limited-payment life insurance is true? Rating codes are assigned to show financial strength or weakness of each company rated the application is used at the primary source of info. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. - Limited Pay Life Which of the following statements about a life insurance policy is (are) true? Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. ($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?" Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. 1. 3) Retaining the risk. We participate at both the national and state levels as a leading advocate in the judicial, legislative, and regulatory environment to ensure that Members' concerns are heard by lawmakers on issues that impact medical professional liability. &\text { Retained Earnings }\\ Which of the following is TRUE regarding assignment rights for . B. Avoidance -receiving dividends(when declared) D. Financial Experience. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. d) The Medical Information Bureau. Premiums are taxable to the employee D. Concealment In this case, the applicant will most likely need to fill out a Statement of Good Health. If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. cheating. -tax free accumulation of borrowing. 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. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? The policy is a contract of adhesion ? The money in a savings account B. The corporation also helps detect and prevent insurer impairments. You cannot sell a variable policy without what? -car accident not in conjunction with an illness The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. Modification to a policy is a _______________? -then picks a contract. DONT PICK IT!!!!!! Level-increasing face value. Insurers use this law in order to predict certain types of losses and set appropriate premiums. 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? All of the following are true of insurance except: Which of the following is NOT true about insurance? b) Promptly forwarding premiums to the insurance company a) Tax-qualified Which of the following is a physical hazard? (a) I only (b) II only C. Solicit applications on the insurer's behalf All renewable term policies are accepted without__________ and only with_____ collected. 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. insurable interest must exist. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. B. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. It is used to help adequacy and equity in rates. B. 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. Term life insurance provides pure death protection. An aleatory contract is a contract where the monetary values of the parties performances are________________. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? Pertaining to insurance, what is the definition of a fiduciary responsibility? Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The agent Individuals covered under the policy received a certificate of insurance. Retention, Avoidance, and Transfer are all _________________. (a) I only (b) II only Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. -paying for certain time and stop. ~~~\text{Depreciation on sales equipment}&45,000\\ This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. (c) two-income earner family. c) Policy loans are taxable distributions. \end{array} ~~~\text{Depreciation on factory equipment}&31,000\\ -pays an additional death benefit if the insured dies from an accident - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. (d) endowment insurance, Rachel needs permanent life insurance. 1) premium schedule differ from whole life A false statement in the application for insurance is_____________. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. The applicant's medical background is addressed in Part 2 - Medical Information. D. Term life. 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 Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. (receive dividends & the right to vote). Which of the following statements about endowment policies is true? C. Waiver 2)Variable annuity C. Unilateral contract c) Conditional Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer 3. All of the following would be considered to be rebating EXCEPT AccountspayableJul1Jul3114,500??? (a) blended family. Life insurance proceeds b) Index used by stock companies -7 pay test is used to determine If a policy is a MEC. Medical exams provide information on current health. A __________ represents the insured. Exclusion Categories 14,500 \\ Correct: A. The face amount decreases as the amount owed on the mortgage decreases. A peril An agent has authority to do all of the following, except: A. Countersign insurance contracts Tax-qualified annuities are subject to IRA maximum contribution limits. 3)Family Policy(Limited but all fam members paid) Life insurance prodceeds All The statements made on the application are called ______? C. The insurer is always required to pay the . b) Unilateral RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. \hline An insurer that was incorporated in a different state that it is doing business in. When applicant is not the insured ______________ must exist. &&\\ The following are all true regarding risk management, except: A. D) the minor in a juvenile policy. Certificate holders may convert coverage to an individual policy without evidence of insurability. Which of the families below is likely to have the least need for a large life insurance policy? What adds coverage and modifies coverage? The applicant has been shown to be a poor personal credit risk. If someone dies within the Grace period, what happens? An underwriter will consider each of the following factors when evaluating a risk, except: A. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Get more out of your subscription* Access to over 100 million course-specific study resources Correct: B. After examining other manufacturing cost data, you have acquired additional information as follows. (2), The current market will influence the cash value (c) The number of times the coverage can be renewed is limited. The following are all true regarding risk management, except: A. Predicted needs of the family after the insured's death are used in the needs approach. b) Adjustable life An annuity is exchanged for another annuity. Contract or form of ownership is a ______________? A securities license. 3)mortality charge. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. The ___________ controls all rights of the contract. (a) present value of future benefits and the present value of future premiums. The policyowner can add to a policy's cash value at any time subject to policy guidelines. 2)quarterly Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. d) Buyer's Guide. 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. A. Policyholders 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. A. c) Coverage ends but the policy can be reinstated at any time. B. Marital Status &\text { Accounts payable }\\ . Domestic Insurer 3)certified public accountants, Is insurance that is provided by the Federal or State government 2. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. a) Universal life 5)Survivorship Life Policy (policy holder pays themselves). C. Department of State Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. B) They illustrate the nonguaranteed elements of the policy. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. ~~~\text{Advertising expense}&90,000\\ 2)can be sold as a rider to a whole-life policy. \end{array} Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} 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? Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles c) Comparisons with similar policies C. Tax Status B. (b) variable life insurance C. Hazards 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. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} (c) face amount of the policy and the legal reserve. Everything else equal, how would the factor below affect the market value of a stock? 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. d) Limited pay. Fraud 1)absolute assignment-all rights are assigned (c) conversion provision What is the MIB? It is a type of tort. -Not invested in stock market 2)not payable in conjunction. D. Department of Treasury (b) Prepare a correct income statement for October 2017. \text{Less: Operating expenses}\\ They become permanently disabled A surplus lines broker deals with direct writing companies only Applicant pays premium to make agreement. B. Misrepresentation (b) II only A) Any distributions from MECs are taxable, including withdrawals and policy loans. Compute DVDs net cash provided by (used for) operating activities during July. Which of the following about the use of ordinary life insurance is true? Whats the "take it or leave it contract"? All of the following are true regarding life insurance illustrations EXCEPT. WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} B. this insurance is often written in connection with automobile loans. Hammond Corporation manufactures televisions. A) loss reserves 2. All of the following statements about the characteristics of Social Security are true EXCEPT A. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. 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. Is interest always gained in Universal Life Policy? -usually mutual fund security (Choose from the following options) An agent and an applicant for a life insurance policy fill out and sign the application. If applicant is not the insured- then insureds signature is required -immediately considered fully paid up A. signed waiver of premium The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. The replacing company notifies the replacement company. -receiving dividends(when declared) Which of the following about a VUL insurance policy is (are) true? Limited-Pay Life & Single-Premium Policies? c) Counselor Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? Originating policy What are the temporary needs? c. continuous premium whole life The cash value of availability to the policyowner (c) face amount of the policy and the legal reserve. A. ~~~\text{Utilities expense}&12,000\\ 2. If a change in the application is necessary what is required? A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. A mutual insurance company does not have what? C. A husband or wife has an insurable interest in their spouse 1)increase cash value An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. D. Reduction is a method of managing risk. D. Funding against general company financial loss 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. d) Older. -Follows all conditions of contract & pays premium, -insurer says how policy works 3)2 Death benefits-(level/increasing) Why?". Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? b. Acceptance The person who receives the benefit when insured dies. -guarantee a stream of income to the person purchasing it known as the annuitant. B. The primary purpose of buying an annuity is? Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? The cost of insurance protection is referred to as what? How much life insurance should Sam advise . d. All of the following statements regarding contracts of indemnity are true EXCEPT a. Costs of training a replacement Insurance is designed to provide protection against which of the following? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. 3)semi-annual D) adding cost of living coverage. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. The CAS number shown in an entry is typically . Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? O c. The policyowner has the option of investing the cash value in several investment accounts. Explain your answer. 2)Family Income(decreasing term-policy) It is used to pay off the balance on the mortgage. What characteristic must an annuity have if it is used to accumulate funds in an IRA? d) Loss. 1) All requirements are met D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 5)coverage begins -age 100. It is the specific cause of loss. the underwriting process is approved for: (b) reduced. c. It is the failure to use ordinary care. (c) PV of the family's share of a deceased breadwinner's future earnings. See Answer. B. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. A. -pay for certain time and stop D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. 2)no cash-value ____________ is a statement that is true to the best of the persons knowledge that is making the statement. Coverage is available in $50,000 increments up to the maximum of $400,000. Your device, make and model. 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? The Waiver of Cost of Insurance rider is found in what type of insurance? 2) Transferring the risk \end{aligned} 4)Explain the policy and its provisions Occupation b) 5 years only. Annual income Misrepresentation, Concealment and Deceit are all examples of what? d) Tax-deductible. C. They can borrow higher amounts off of their policies Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? If there Is a risk of financial loss then there is a what? a) Material change d) Military personnel. B. The NAAR for a life insurance policy is the difference between the * 50% is paid Investors become more risk averse. 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. D. Gender. c) 10 years. B. Department of Defense (a) matured. A persons assets & liabilities at their time of death. 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. Signed waiver of premium The total of all requisitions of direct materials issued during the month is $252,230.00. -the insurer sets the terms of the contract and the applicant must adhere to them. Any gain in the policy's cash value is . (economy). b) Cost of living rider. Correct: C. Condition contract, enforceable only under certain conditions. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded Which kind of agent enters into agreements with more than one insurer? What are two reasons that people deposit money in banks? \hline \text { Jul 1 } & 5,500 &&\\ II. Benefits received are considered income taxable After everything is signed & premium is collected What does the agent give to the policy holder? Rates are considered inadequate when they do not cover projected losses and expenses. The Boyle family can be described as a Annually renewable term policies provide a level death benefit for a premium that $ cant exceed indebtness. B. Insureds current and future income 1)Domestic Insurer Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. All of the following are true of insurance EXCEPT It transfers risk. Being young and healthy means you can skip out on health insurance. B. 90-180 days. D. Claim History a) A medical examination What does "liquidity" refer to in a life insurance policy? 2. 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 For example, a claim will be paid only is there has been a covered loss. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. d) The Guaranty Corporation. d) Fair Credit Reporting Act. What are the 3 characteristics of a Mutual Insurance Company? The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1.

all of the following are true of insurance except 2023