Rating codes are assigned to show financial strength or weakness of each company rated The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. \end{aligned} They become permanently disabled 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. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} On DUE DATE. (d) indeterminate-premium whole life. 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? Group life insurance is most often issued as guaranteed annual renewable term. A) They must be given to all Life insurance applicants. An annuity is exchanged for another annuity. Who appoints the state insurance regulator in many states? Be prepared to justify your answer. ________________ are the person who receives benefits payable upon death. (d) sandwiched family. Which of the following is the basic source of information used by the company in the risk selection process? A. signed waiver of premium Which of the following documents must be provided to the policyowner or applicant during policy replacement? 2)Increase the face value 1) premium schedule differ from whole life ~~~\text{Utilities expense}&12,000\\ If the ultimate consumer is a business that collects and pays to the government VAT on . \end{aligned} Which of the following statements is NOT true concering insurable interest as it applies to life insurance? Concerning insurance, the definition of a fiduciary is a) Agent's report 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. Occupation -Can't lose value D. Financial Experience. Whats the cheapest type of permanent insurance? However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. 3) type of plan they applied for. It is used to help adequacy and equity in rates. - 20 pay life-premiums paid for 20 years and paid up at 65 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. 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. Newborns after how many days become covered in a child rider? What are (4) ways annuities are classified? (6). 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. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. &&\\ Which of the following about a VUL insurance policy is (are) true? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). ______________ is defined as restoring the insured to the same financial condition as before the loss. a) Aleatory c. It is the failure to use ordinary care. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. Premiums are not tax deductible as a business expense. 2. -its a rider Prior to October 2017, the company had been profitable every month. C. Medical Background Pertaining to insurance, what is the definition of a fiduciary responsibility? c) 10 years. \hline & \text { Jul 1 } & 55,000 \\ There is no limitation on the number of key employee plans in force at any one time B. Only the MIB will provide information about an applicant's medical history. d) Tax-deductible. A ____ contract requires that both parties perform certain duties. Legal Purpose 2. What are the permanent working capital needs of your company? 1. Mutual life policy. 3) Retaining the risk. Agent Sam is using the human life value approach to assess Mary's life insurance needs. Carl would like to purchase life insurance. 1) All requirements are met 3)premium is collected Insurers use this law in order to predict certain types of losses and set appropriate premiums. 5)coverage begins Jul3117,000\begin{aligned} C. Waiver c) Low-income individuals and families What are the two options in death benefit options? I. Correct: C. Unilateral contract. c) The inspection report Predicted needs of the family after the insured's death a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . A. A person cannot buy insurance unless that person is in a position to suffer a financial loss. b) An agent offers to share his commission with a policyholder. a. a) Remains level. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? An Insurance Broker is responsible for what? An insured owns a life insurance policy. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. d) 15 years. 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? (3), 1)bank trust officer All of the following are personal uses of life insurance EXCEPT, All of the following are true of key person insurance except, D. The plan is funded by permanent insurance only. Empire Company is a manufacturer of smart phones. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. D. Accident (a) renewal provision A corporation is the owner and beneficiary of the key person life policy. C. The insured may retain part of a risk through deductibles. D. Reduction is a method of managing risk. A life insurance license. b) Unilateral Height Weight and Health conditions. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. (economy). 4)annual, Everytime you have a payment due. An insurer that is incorporated in the same state that they are doing business in is a_____________.? \end{array} The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. C. Loss of personal income b) Conditional receipt In addition, they provide financial support for Tom's aged father and Nancy's aged mother. D. Speculative Risk & \text{ ???? } Hazard InventoryJul1Jul3122,000???? (c) conversion provision 3)defined benefit plans -Voting. B. The policy is a contract of adhesion A) An indeterminate premium reduction policy is a policy in which the premium is guaranteed for an initial period, then the insurer can charge up to a maximum premium charge that is specified in the policy. B) A fiduciary is a producer who handles insurer funds in a trust capacity. Which of the following statements about a life insurance policy is (are) true? What are two reasons that people deposit money in banks? All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. c) To protect the policyowner Which of the following is true regarding the beneficiary designation of the former spouse. Endowments means policy is what(2) things? There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. b) 5 years only. James purchased yearly renewable term insurance. C. Solicit applications on the insurer's behalf Nonparticipating policy. Which of the following is NOT an example of a business use of Life Insurance? \end{aligned} 1) Avoiding the risk 1)Statement of continued good health B) They illustrate the nonguaranteed elements of the policy. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. Insurance is designed to provide protection against which of the following? D) They must be signed by both the Producer and the applicant. Rates (Hint: Take a look at the Theory of Reasoned Action.). -If the insured dies, the policy payed out the PRINCIPAL SUM 3)they provide insurance to members. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution D. The ratings are available to the public -Follows all conditions of contract & pays premium, -insurer says how policy works 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. C. Medical Background 4. c) Extended term (a) I only (b) II only The total of all requisitions of direct materials issued during the month is $252,230.00. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? 3)mortality charge. It requires evidence of insurability for renewal. An underwriter will consider each of the following factors when evaluating a risk, except: A. D. Premiums paid are deductible as a business expense. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. Dividends received by policyholders of a mutual insurer are not taxable. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. Accelerated Living Benefit/Death Benefit is what type of rider? D. Department of Treasury 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. B) Fiduciary refers to a position of trust. All of the following are methods of payment? She has limited income and significant life insurance needs. (b) Any withdrawal of cash value reduces the death benefit. Funding against financial loss caused by the death of a key employee Acceptance A debtor has an insurable interest in the life of a lender. 2)administered charge Instructions What are the (5) Factors considered with combination policies Who and What are they? Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. d) Accumulations are tax deferred. D. group credit insurance must have a suicide clause . Yes, all T-mobile insurance plans cover water damage. 3)Consideration Correct: A. (Choose from the following options) For this amount of production, total factory overhead is estimated to be $396,000.00. &\text { Accumulated depr.-equipment }\\ Correct: A.A peril. It is most appropriate when an insured needs lifetime protection. Out of 20 yr or 30 yr which policy is less expensive? C. Hazards Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. -cash value options a) More active. Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. B. Marital Status may not be altered by an agent and must clearly state that it is not part of the contract. Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees. Their premiums are lower 1)increase cash value D) An agent's report and inspection report provides personal information. B. What is the primary source of info for the underwriting department to determine insurability? (c) human life value method B. 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. \text { Type II } & \$ 20 & \$ 30 & \$ 40 1) insured gets higher amount ____________ is a statement that is true to the best of the persons knowledge that is making the statement. D. The face amount remains the same throughout the life of the policy. b. The applicant has been shown to be a poor personal credit risk. Whole life policy. \end{array} C. A surplus lines broker accepts business only from non- resident agents ___________ is the persons whose death triggers payment. 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". & &&\textbf{ Quarter } \\ Which of the following does not constitute the consideration in the insurance transaction? C. group credit life insurance does not build cash values. All of the following statements about term insurance are true EXCEPT. Now Tamara can afford whole life insurance. C) the proposed insured. Consumer report O b. Only one party is giving a legally enforceable promise- A one-sided contract is what? Reinsurance has 2 types of policys, what are they? -age 100. AccountspayableJul1Jul3114,500??? Coverage is available in $50,000 increments up to the maximum of $400,000. also known as acceptance. Life expectancy has increased in the U.S. over the last century. a) Types of mutual companies a) Accepted accounting principal. 2) Binding Reciept. B. A. The penalty is 50% of the shortfall from the required annual amount. What happens when there is a Misstatement of age or sex? 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. 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. The policyowner can add to a policy's cash value at any time subject to policy guidelines. With a little work, an unused office area could be converted to a rental room. What will probably happen? 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. Who gets $$money when the policy holder dies? Which of the following is usually true of a participating life insurance policy? The applicant's medical background is addressed in Part 2 - Medical Information. Executive office The benefit is subject to the exclusionary rule Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. & \text { Depr } & 3,000 \\ (a) universal life insurance. b) Increasing Premium 3)Family Policy(Limited but all fam members paid) Modification to a policy is a _______________? Which of the following best describes a surplus lines broker? insured is always the borrower & the beneficiary=lender D. Aleatory contract All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. The NAAR for a life insurance policy is the difference between the d) Producer. C. Concealment Breach of warranty \hline \text { Jul 31 } & 3,000 Who assumes control over an insurance company's funds and management if it becomes insolvent? When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? C. Payment of premium \end{array} \\ What is the difference between renewable policy holder & Insurer? All of the following information about a customer must be used in determining annuity suitability EXCEPT b) Cost of living rider. Who would be eligible to obtain SGLI? In a car accident dealing with ADB who covers the passenger? Represent the insured's interest 2)FCRA(fair credit reporting act) checks MIB report. All of the following statements about the characteristics of Social Security are true EXCEPT A. What does it mean when a policy is limited pay life? (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? 4)policy matures at age 100. 1) the premium amount All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. d) The Medical Information Bureau. &\text { Cash }\\ A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. C. The benefit is received as taxable income b. &\text { Accounts payable }\\ Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ C. Consideration The designation will be void/. Correct: D. Concealment. d. The total of all cost sheets completed during the month is $628,880.00. B. Buy-Sell Agreements pay in the event of a medical emergency The agent &\text { Rental Class }\\ Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. 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. B. Nonadmitted A policy summary usually includes all the listed information, and must be delivered along with a new policy. All of the following are required signatures on a life insurance application EXCEPT. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} (b) They increase at a decreasing rate. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. 4)settlement options, 1)stand alone policy All of the following statements concerning coinsurance are true, EXCEPT . Tamara purchased a term insurance policy when she had high life insurance needs and limited income. \hline \text { Jul 1 } & \begin{array}{r} 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. -7 pay test is used to determine If a policy is a MEC. A) the agent. The cost of insurance protection is referred to as what? \end{aligned} 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? A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. C) purchasing family term insurance. A peril (b) level-premium method When applicant is not the insured ______________ must exist. I. C) They must contain a warning that actual results may vary. All of the following statements about ordinary life insurance are true EXCEPT. Cash value is invested in the stock market. All of the following would be considered to be rebating EXCEPT Insurance transfers risk but it does not__________ risk. Benefits received are considered income taxable What is the primary source of info used to determine insurability by the underwriting department? What is the purpose of a suicide provision within a life insurance policy? The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned}
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