d. It does not require a duty to be owed. The policy does not go into effect until the premium has been collected. &\text { Cash }\\ - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. 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. \textbf{For the Month Ended October 31, 2017}\\ An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D) They must be signed by both the Producer and the applicant. D. The policy is a bilateral contract Department of Defense \end{aligned} d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. insured is always the borrower & the beneficiary=lender Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. A debtor has an insurable interest in the life of a lender. A _______ __ is the additional premium needed to get covered with high or substandard risk. &\text { Accounts payable }\\ Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. b) A producer who handles insurer funds in a trust capacity. Insurance is an important tool to manage risks, but often unavailable to poorer households. B. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. (b) level-premium method D. Premiums are tax deductible as a business expense, B. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. a) Executive offer of the replacing company 2. B. Can a misrepresentation render the contract void if the misrepresentation is material to the risk? Beneficiary's age is not a suitability factor. b. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. How much life insurance should Sam advise . 4)annual, Everytime you have a payment due. CashJul1Jul315,500???? B) Underwriters. 5)Survivorship Life Policy (policy holder pays themselves). C) purchasing family term insurance. Which of the following statements about endowment policies is true? -it pays the double indemnity, 1)accident occurs, person must die within 90 days b. persistent fear of germs -The insurer would pay the face amount of the policy minus the past due premium. B. Instructions A. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. \end{aligned} D) the minor in a juvenile policy. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? A debtor has insurable interest in the life of a lender a) Aleatory The policy is a contract of adhesion Statement of good health In this case, the applicant will most likely need to fill out a Statement of Good Health. a) Lump-sum approach Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? &\begin{array}{l|lr} D. Department of Treasury Which risk management type is shifting the risk of loss to a larger homogeneous group? The total of all requisitions of direct materials issued during the month is $252,230.00. To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Are insurance company underwriters allowed to discriminate? B. Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. \end{array} A. 2)quarterly \text{Sales revenue}&&\$780,000\\ What are two reasons that people deposit money in banks? ~~~\text{Selling and administrative salaries}&75,000\\ b) Human life value approach The __________ branch of the state government influences public policy regarding insurance laws. D. Viatical settlement. A. It does not include breach of contract. d) Living need rider. 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 1) the premium amount &&\\ I. He would also like to invest in a mutual fund. B. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} ? Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. O d. \hline & \text { Jul 31 } & 58,000 D. A surplus lines broker deals with admitted carriers only 3)Increasing term adds face value. The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. What type of term do you think would be least expensive a short term or a long? The insurance company may not void the insurance policy for which of the following reasons? -immediately considered fully paid up C. Risk \text{Inventory} & 201 & 505 & 905 & 52 \\ d) Accumulations are tax deferred. 3. A company doing business in the same state it was incorporated in and owned by the policy holders. A. Concerning insurance, the definition of a fiduciary is When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Costs of training a replacement b) 10% for early withdrawal D) Claims result from losses by a peril insured against in an insurance policy. -marriage Which of the following best illustrates a (Choose from the following options) The insured agrees to maintain insurance equal to some specified percentage of the value of the property. C. Whole life Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? 1) coverage is permanent also known as acceptance. -receiving dividends(when declared) 4)settlement options, 1)stand alone policy \text{ ???? } C. Insured's annual expenses Which of the following is a physical hazard? d) Loss. 2)Straight Life a. mentally counting backward from 1,0001,0001,000 B. -7 pay test is used to determine If a policy is a MEC. \hline & \text { Jul 31 } & 19,500 Which of the following types of insurance policies would perform the function of cash accumulation? c) Needs approach An insured is driving her automobile and strikes a large pothole that . C. Tax Status \end{aligned} C. Conditional contract When does the grace period begin and how long is it? (d) indeterminate-premium whole life. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Economics questions and answers. (2), 1)HIPPA Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? D. Represent the insured's interest (c) Most policies can be converted to a permanent life insurance policy. c. continuous premium whole life A mutual insurer has no stock, and is owned by the policyholders. D. Alien A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. ? C. Unilateral contract c. Do you think that the government has the right to make and enforce laws that affect family life? c) Guides describing company financial integrity Which of the families below is likely to have the least need for a large life insurance policy? (6). 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. See Page 1. ~~~\text{Direct labor cost}&190,000\\ Insurance is designed to cover both intentional and unintentional losses. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. Level-increasing face value. 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. Correct: B. An Insurance broker is responsible for what? a) Premium amounts and surrender values Individuals covered under the policy received a certificate of insurance. All of the following are true of insurance except: Which of the following is NOT true about insurance? What is used for the underwriting department to determine insurability? The policy is issued for one year and may be renewed annually with evidence of insurability. A SEC registration. B) The parent is responsible for the premium. -it is a type of Rider They become permanently disabled The insurance provides protection for a specified period of time. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. b) The agent's report (b) Most policies can be renewed without evidence of insurability. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. 1)premium payment b. it frequently includes coverage for losses due to casualty and theft. d) Producer. D. Solicit applications on insurer's behalf -If the insured dies, the policy payed out the PRINCIPAL SUM 2)can be sold as a rider to a whole-life policy. Rates. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} d) Tax-deductible. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant Terms that apply to the insurer not the applicant. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). Insurance producers must ensure that contracts they recommend are in the best interest of the insured. An insurer that is incorporated in the same state that they are doing business in is a_____________.? Members are assessed to fund the corporation. 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. All of the following statements about the settlement of a claim are true EXCEPT. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. A policy summary A life insurance license. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Weiss and Fitch are two of these services, although there are more. (a) universal life insurance. What are some of the questions asked on the application to determine the premium and risk classification of the insured? \end{array} If there Is a risk of financial loss then there is a what? A. Appoint a solicitor as his or her representative An agent has authority to do all of the following, except: A. Countersign insurance contracts -the premiums are paid for a limited time only. What are the temporary needs? D. Concealment How has the Aswan High Dam affected the lives of Egyptians? As her friend, you have been asked to review the income statement and make necessary corrections. Address of his principal office Who is responsible for making sure the application is completed properly and all necessary info is obtained? A securities license. -Follows all conditions of contract & pays premium, -insurer says how policy works -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? - Limited Pay Life An insurer that was incorporated in a different state that it is doing business in. What type of policy does the insured most likely have? A. 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. Signed waiver of premium D) Insurance covers intentional losses as well as unintentional. \hline & \text { Jul 1 } & \begin{array}{r} 1. 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? After examining other manufacturing cost data, you have acquired additional information as follows. The applicants(policy owner) Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Why?". Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. There is a limit for a withdrawal and the insurer charges a fee. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. Who gets $$money when the policy holder dies? A policy summary usually includes all the listed information, and must be delivered along with a new policy. Premiums are taxable to the employee is proved to be untrue, whether intended as a falsehood or not, and may void the contract. Is interest always gained in Universal Life Policy? What will probably happen? Fraud 4)explain policy & provisions All of the following are business uses of life insurance EXCEPT Term. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. All of the following statements about term insurance are true EXCEPT. Last year, the couple got divorced. The person who receives the benefit when insured dies. (c) expired. 2)when benefits begin 3)substandard-highest, 6 factors that are complete for policy 2 be paid? ~~~\text{Raw materials purchases}&\$264,000\\ a) Using arbitration when the insured and insurer cannot reach agreement What insurance concept is associated with the names Weiss and Fitch? When will coverage begin? D. group credit insurance must have a suicide clause . (D The employer is the owner, payor and beneficiary of the policy. b) An agent offers to share his commission with a policyholder. (b) Face amount decreases during the policy period, but premiums remain level. She has limited income and significant life insurance needs. A. signed waiver of premium If someone dies within the Grace period, what happens? A corporation is the owner and beneficiary of the key person life policy. What happens when there is a Misstatement of age or sex? -the applicant must always initial the change (b) Cash value accumulation is slow to moderate. Type I rooms do not have wireless Internet access and are not available for the Business rental class. All of the following statements about term insurance are true EXCEPT. Rates \end{aligned} Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. M327. \end{aligned} Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. B. Hospital bills of the key employee (a) capital retention approach Rating codes are assigned to show financial strength or weakness of each company rated ~~~\text{Utilities expense}&12,000\\ In a car accident dealing with ADB who covers the passenger? c) A person who handles assets or money belonging to others. C) They must contain a warning that actual results may vary. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? What are the 3 characteristics of a Mutual Insurance Company? 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. & \text { Depr } & 3,000 \\ c) Comparisons with similar policies Quarterly working capital levels for your firm for the next year are included in the following table. The Boyle family can be described as a &\text { Rental Class }\\ d) The Guaranty Corporation. ~~~\text{Rent on factory facilities}&60,000\\ All of the following statements about ordinary life insurance are true EXCEPT. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. It requires evidence of insurability for renewal. 1)absolute assignment-all rights are assigned B. II. Prepare the following details: Mobile number, serial number, or IMEI. It is the specific cause of loss. B. 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. C. Consideration (a) Evidence of insurability is not required to renew the coverage. b) Reduced paid-up Their premiums are lower For example, a claim will be paid only is there has been a covered loss. d) The Medical Information Bureau. B. Insureds current and future income compulsion? The companys president is concerned about the accuracy of the income statement. D. Term life. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. Which of the following is usually true of a participating life insurance policy? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. Correct: A.A peril. (d) neither I nor II. The following are all true regarding risk management, except: A. D. The face amount remains the same throughout the life of the policy. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. 2)interest sensitive 2)non-qualified plans a. An underwriter will consider each of the following factors when evaluating a risk, except: A. C. Premiums are determined by age sex and occupation of each individuals certificate holder. 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. 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? 1)physical exam 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. On DUE DATE. C. group credit life insurance does not build cash values. The policyowner can add to a policy's cash value at any time subject to policy guidelines. \textbf{Income Statement}\\ AccountspayableJul1Jul3114,500??? 2. The insurer that is transferring the risk to another company is called the ____________ __________. 4)defined contribution plans. (2), The current market will influence the cash value Rates are considered inadequate when they do not cover projected losses and expenses. Joe, Larry, and Curly own a small business. What is a statement in the application guaranteed true in all respects? Most agents try to collect the initial premium for submission with the application. . One sided contract is a ______________ contract. 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. 3. 2)the face amount (Choose from the following options) 1)tax qualified plans You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. Limited-Pay Life & Single-Premium Policies? O b. Consumer report d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. D) Obtaining a bachelor's degree. C. Solicit applications on the insurer's behalf \hline (\$ 000) & 1 & 2 & 3 & 4 \\ The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. B. 2)premium gets lower. 3)according to the source of annuity income 1) a policyholder votes on the Board of Directors Which of the following is NOT a fraudulent and intentional deception of the truth? (d) They remain level. There are 2 parties of the contract- what are they? c) Misrepresentation c) Conditional database of previously life and health insurance applications. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. What is the purpose of a suicide provision within a life insurance policy? c) An agent offers tickets to a baseball game as an inducement to buy insurance. D. The ratings are available to the public 4. Which of the following is a financial rating service? d) Decreases annually. Question: All of the following statements about variable life insurance are true EXCEPT O a. An annuity is exchanged for another annuity. Which of the following about yearly renewable term insurance is true? Policyholders d) Performing reviews of insured's coverage. ___________ is the persons whose death triggers payment. -pay for certain time and stop (c) They decrease at a constant rate. Nature of risk Which of the following about a VUL insurance policy is (are) true? 2)Legal Purpose The insurer issues the policy and learns of his history one year later. The CAS number shown in an entry is typically . A. Which of the following is an example of liquidity in a life insurance contract? The debtor does not have an insurable interest in the life of the lender. Non-Participating (stock) Life Insurance Policy. ____________ is the transfer of the right of recovery from the insured to the insurance company. -ages 25,28,34,37,40 2)Variable annuity a) Types of mutual companies -But pays you interest, 1)Fixed annuity -Not a true insurance company Daycare is considered to be among these expenses. c) 10 years. Annual income Being young and healthy means you can skip out on health insurance. 3) type of plan they applied for. D. The benefit is received tax free. The cost of insurance protection is referred to as what? What does "liquidity" refer to in a life insurance policy? Insurance transfers risk but it does not__________ risk. Round Trees management makes a forecast of the demand by rental class for each night in the future. a) Withdrawals are not taxable. Which model is the better fit for the data? AccountsreceivableJul1Jul3121,000???? Buy-sell agreements are normally funded with a life insurance policy. Insurance is designed to provide protection against which of the following? Applicant pays premium to make agreement. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights \end{aligned} 1)policy owner can increase/decrease/ or skip premium payments A. contract of adhesion (b) current assumption whole life. 1) preferred risk 3)2 Death benefits-(level/increasing) James purchased yearly renewable term insurance. If the ultimate consumer is a business that collects and pays to the government VAT on . c) Increases annually. c) Disclosure rule \hline \text { Jul 1 } & 22,000 \\ d) Military personnel. -its a rider In addition, they provide financial support for Tom's aged father and Nancy's aged mother. A key person insurance policy can pay for which of the following? Who might receive dividends from a mutual insurer? \textbf{EMPIRE COMPANY}\\ -policy holder adheres to it 3)mortality charge. B. (c) face amount of the policy and the legal reserve. All of the following characterize term life insurance, EXCEPT: Select one: a. -cash value options 4. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. Which of the following statements about a life insurance policy is (are) true? (b) tax-free exchange provision The corporation also helps detect and prevent insurer impairments. d) Paid-up option. 2)no cash-value When a policy is non-contributory how much is paid? 3) Ordinary. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers What is an exchange of a whole entire life policy for another? The issuance of a _________ is the result of the acceptance of an offer. Alex, age 26, purchased a 20- payment whole life insurance policy. B) the applicant. A FINRA registration. If a change in the application is necessary what is required? _________ is a determination that a statement made as a warranty, or true. C. Loss of personal income d) The insurer will sue the insured for committing fraud. A ____ contract requires that both parties perform certain duties. Pertaining to insurance, what is the definition of a fiduciary responsibility?