Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. * 50% is paid 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. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. -cash value options (Medic Information Bureau)? 3) type of plan they applied for. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. Carl would like to purchase life insurance. Which of the following would provide an underwriter with information concerning an applicant's health history? Which nonforfeiture option provides coverage for the longest period of time? D. The benefit is received tax free B. B. Waiver of Premium- What happens to the insurer? ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Correct: B. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. B) A fiduciary is a producer who handles insurer funds in a trust capacity. 4)annual, Everytime you have a payment due. AKA-payout phase. Steven prints a pamphlet to advertise his life insurance business. The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. The corporation also helps detect and prevent insurer impairments. (6). If a change in the application is necessary what is required? Agent Sam is using the human life value approach to assess Mary's life insurance needs. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. D) the minor in a juvenile policy. C. The death benefit paid to the beneficiary 4) Joint-Life policy(business part) Insurance policy of 2 or more Which of the following statements about endowment policies is true? 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. \\ Any gain in the policy's cash value is . 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. AccountsreceivableJul1Jul3121,000???? B) the applicant. D. group credit insurance must have a suicide clause . D. Delivery receipt. 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? B. Premiums are not tax deductible as a business expense Study with Quizlet and memorize flashcards containing terms like Which of the following would not appear in the asset section of an insurance company's balance sheet? ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} The death benefit varies according to investment experience. A. A state administered health insurance for the needy? Most agents try to collect the initial premium for submission with the application. Insurance is not designed to cover _____________ losses. The shifting of risk of loss to a larger homogeneous group is known as what? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ (a) limited-payment whole life insurance (b) Most policies can be renewed without evidence of insurability. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? Address of his principal office a) Executive offer of the replacing company The Waiver of Cost of Insurance rider is found in what type of insurance? Insurance is designed to cover both intentional and unintentional losses. James purchased yearly renewable term insurance. 1)Level exclusions: when the accident occurs within an illness,disease, or mental infirmity. M327. c) Counselor -immediately considered fully paid up b. Dividends received by policyholders of a mutual insurer are not taxable. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. -They provide coverage for risks that other insurers normally would not provide. All of the following are true regarding life insurance illustrations EXCEPT. Exclusions always exist, and there is a reason for each one. (c) human life value method Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? Nonparticipating policy. He would also like to invest in a mutual fund. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ 4. -assignor=assignee C. Unilateral contract \end{array} Cause of potential loss to property such as fire, windstorm, hail, flood, etc. d) Tax-deductible. -low commissions O c. The policyowner has the option of investing the cash value in several investment accounts. *Both not taxable. Who represents the insured when dealing with insurance companies? \textbf{EMPIRE COMPANY}\\ a) Accumulated at interest A. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. After examining other manufacturing cost data, you have acquired additional information as follows. 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. Which of the following statements is not correct regarding rates and premiums? All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. A producer wishing to appeal the final order of the commissioner would appeal to???? An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? 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 The cash value available to the policyowner An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Medical exams provide information on current health. D. Concealment Domestic Insurer d) 50% tax on the amount not distributed as required. C. It's a decreasing term insurance. 3)they provide insurance to members. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. (a) Interest is credited monthly to a policy's cash value. Jul3125,500\begin{aligned} d) Accumulations are tax deferred. good health 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)defined contribution plans. 3)mortality charge. \textbf{For the Month Ended October 31, 2017}\\ C) purchasing family term insurance. c) Smaller. \textbf{Income Statement}\\ 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. \end{aligned} Which of the following is an example of an unfair claims settlement practice? An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past A false statement in the application for insurance is_____________. a) Agent's report D. Workers compensation. &\begin{array}{r|lr} Accelerated Living Benefit/Accelerated Death Benefit? A FINRA registration. Appoint a solicitor as his or her representative Rates. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Joe, Larry, and Curly own a small business. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? The cost of insurance protection is referred to as what? 2)Decreasing Term Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. Applicant pays premium to make agreement. cash value increases while face value remains the same. c) Misrepresentation (a) I only (b) II only B. a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. 1) insured gets higher amount 2)when benefits begin \end{aligned} All of the following statements are true regarding mortgage protection insurance EXCEPT. When applicant is not the insured ______________ must exist. Whoso. What is the primary source of info for the underwriting department to determine insurability? The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. \end{array} Can a misrepresentation render the contract void if the misrepresentation is material to the risk? c. thoughts of harming a neighbor a) Indeterminate Premium &\begin{array}{lr|lr} Rates are considered inadequate when they do not cover projected losses and expenses. D. Breach of warranty What is the primary source of info used to determine insurability by the underwriting department? The insured agrees to maintain insurance equal to some specified percentage of the value of the property. 4)Explain the policy and its provisions C. Waiver of Estoppel Beneficiary's age is not a suitability factor. The applicants(policy owner) C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. (a) universal life insurance. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ -Not a true insurance company c) To protect the policyowner Which of the following is a financial rating service? Which of the following about a VUL insurance policy is (are) true? (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. 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. (c) The number of times the coverage can be renewed is limited. a) Remains level. a) Material change Certificate holders may convert coverage to an individual policy without evidence of insurability. An annuity is exchanged for another annuity. (D The employer is the owner, payor and beneficiary of the policy. \end{array} \\ 1) premium schedule differ from whole life (2), The current market will influence the cash value It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. A. c) Accelerated benefit rider. (d) Most policies have a CV that is refunded when coverage ceases. B. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. She meets the definition of total disability under Social Security. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT d) The insurer will sue the insured for committing fraud. B. (d) Premiums increase at an increasing rate upon renewal. D) Obtaining a bachelor's degree. (a) present value of future benefits and the present value of future premiums. The cost of a living rider is calculated by what? 1) cash value earns interest (a) renewal provision D. Funding against general company financial loss Past-due interest on a policy loan is added to the total debt. -the premiums are paid for a limited time only. a) Universal life \hline \text { Jul 31 } & 25,500 Example: company that is incorporated in NJ and sells in NJ. a. 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. 2) form of interest sensitive life insurance(current market conditions influence the cash value) -A Mec will receive unfavorable tax treatment A conditional or binding receipt is given when an applicant does what? 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 life insurance policy is exchanged for an annuity. What else must he include? 4. A. (c) Most policies can be converted to a permanent life insurance policy. Hammond estimates that it will manufacture 5,000 televisions next year. 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. -receiving dividends(when declared) 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. Pure Risk. -The insurance dept. 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. B. Quarterly working capital levels for your firm for the next year are included in the following table. 4)explain policy & provisions Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} B. Aleatory contract A policy summary As her friend, you have been asked to review the income statement and make necessary corrections. \text{ ???? } Is interest always gained in Universal Life Policy? Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. What happens when there is a Misstatement of age or sex? Chapter 11 - Life Insurance. 3)MIB=records of all previous insurances they had. -its a rider Group life insurance is most often issued as guaranteed annual renewable term. DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. D. A surplus lines broker deals with admitted carriers only 1) coverage is permanent If the insurance carried is less than required, the insurance may not cover the whole loss. Insurance is designed to cover both intentional and unintentional losses. 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? Insurance is an important tool to manage risks, but often unavailable to poorer households. All of the following are true of insurance EXCEPT It transfers risk. compulsion? Agents and producers must place business through an insurer with the lowest rated \underline{\hspace{40pt}}. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. B. All of the following are common characteristics of this coverage EXCEPT A. 2)not payable in conjunction. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. All of the following are methods of payment? b) Universal Life Which of the following about yearly renewable term insurance is true? 3)according to the source of annuity income An annuity whose based on the stock market index? b) State attorney general What are the (5) Factors considered with combination policies Who and What are they? Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? c) Needs approach Accidental Death Benefit (economy). An underwriter will consider each of the following factors when evaluating a risk, except: A. -pay for certain time and stop Everything else equal, how would the factor below affect the market value of a stock? 3)2 Death benefits-(level/increasing) (b) Prepare a correct income statement for October 2017. 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? A. The issuance of a binder is the result of the ___________________ of an offer. All The statements made on the application are called ______? Who assumes control over an insurance company's funds and management if it becomes insolvent? She has limited income and significant life insurance needs. Which of the following documents must be provided to the policyowner or applicant during policy replacement? Cash values can be borrowed at any time 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. -marriage An Insurance broker is responsible for what? b) Human life value approach c. Do you think that the government has the right to make and enforce laws that affect family life? 3. If company pays dividends, then they are a? Involuntary Risk A. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 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. d) Performing reviews of insured's coverage. b. \hline && \text { Jul 1 } & 65,000 \\ & \text { Depr } & 3,000 \\ A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. (b) They increase at a decreasing rate. C. Domestic B) Passing examination with 75% or higher score. c) Variable Premium The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. C. Solicit applications on the insurer's behalf \hline \text { Jul 1 } & 22,000 \\ C. State Education Waiver 2)Foreign Insurer 1. c) Extended term 2)Explain and collect any ratings -and the right to vote. B. -If the insured dies, the policy payed out the PRINCIPAL SUM (a) I only 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. There is no limitation on the number of key employee plans in force at any one time B. b) Larger. The designation will be void/. AccountspayableJul1Jul3114,500??? Represent the insured's interest Pro rata liability applies. 2)administered charge Which of the following is true regarding the beneficiary designation of the former spouse. B) The plan is funded by permanent insurance only. D) Insurance covers intentional losses as well as unintentional. Why?". A. Type I rooms do not have wireless Internet access and are not available for the Business rental class. 2)attorneys This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. The CAS number shown in an entry is typically . d. It does not require a duty to be owed. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. -pays an additional death benefit if the insured dies from an accident B. 3. also known as acceptance. ~~~\text{Utilities expense}&12,000\\ Daycare is considered to be among these expenses. 21,000 \\ A. D) the minor in a juvenile policy. 3,000, AccountsreceivableJul121,000???? ~~~\text{Rent on factory facilities}&60,000\\ 2)APS=medical records A key person insurance policy can pay for which of the following? A. 1)cont. ___________ is the persons whose death triggers payment. d) Primary and secondary beneficiary designations. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers d) The Medical Information Bureau. An__________ represents the insurer. 1. The 4 characteristics of a universal life policy are? 1)policy owner can increase/decrease/ or skip premium payments All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Insurance is designed to provide protection against which of the following? C) Completing pre-licensing training. Adverse selection is well controlled. -Follows all conditions of contract & pays premium, -insurer says how policy works
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