all of the following are true of insurance except

\end{aligned} 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. Health insurance decreases your healthcare costs. Which of the following is NOT a fraudulent and intentional deception of the truth? . B. IRS has no jurisdiction Which of the following best describes a surplus lines broker? M327. D. Aleatory contract & \text{ ???? } d) Policy dividends. The issuance of a binder is the result of the ___________________ of an offer. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. A persons assets & liabilities at their time of death. Newborns after how many days become covered in a child rider? b) Fixed income A. Your device, make and model. D. They can decide when to pay their monthly premiums. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. (a) They increase at an increasing rate. (c) face amount of the policy and the legal reserve. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? A life insurance license. The 3 categories of private insurers site of incorporation? Chapter 3 part 1 Flashcards | Quizlet Pure risk _________ is a determination that a statement made as a warranty, or true. Signed waiver of premium -Not a true insurance company c) Denying coverage after a reasonable investigation has been conducted 3)2 death benefit option (c) both I & II (d) neither I or II, Diane is a single parent. (d) They remain level. Correct: B. (a) renewal provision An__________ represents the insurer. -receiving dividends(when declared) Credit life 2)premium gets lower. The following are all true regarding risk management, except: A. 4. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. Increasing term A policy summary 4)policy matures at age 100. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. \hline 3. A. considers Lloyds of London an Alien insurer B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. What is the purpose of a suicide provision within a life insurance policy? AccountsreceivableJul1Jul3121,000???? The money in a savings account Carl would like to purchase life insurance. (6). Are insurance company underwriters allowed to discriminate? It is most appropriate when an insured needs lifetime protection. & \text { Depr } & 3,000 \\ a) Using arbitration when the insured and insurer cannot reach agreement The cost of a living rider is calculated by what? \text{Inventory} & 201 & 505 & 905 & 52 \\ Estate conservation b) The elderly What happens when there is a Misstatement of age or sex? B. Correct: C. Concealment, A. a) Lump-sum approach \text { Type II } & \$ 20 & \$ 30 & \$ 40 It requires evidence of insurability for renewal. c) Coverage ends but the policy can be reinstated at any time. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. An individual applies for a life policy. \textbf{Income Statement}\\ It has cash value that is invested into the stock market through mutual funds/securities. A __________ represents the insured. 1)physical exam C. Funding business continuation agreements A) They must be given to all Life insurance applicants. 3) Ordinary. A. 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. What is the primary source of info for the underwriting department to determine insurability? Renew policy holder has an option- THE INSURER DOES NOT. Nature of risk 3)certified public accountants, Is insurance that is provided by the Federal or State government All of the following information about a customer must be used in determining annuity suitability EXCEPT One sided contract is a ______________ contract. The following information is taken from the records of Hammond on November 30 of the current year. Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? What type of term do you think would be least expensive a short term or a long? A debtor has an insurable interest in the life of a lender. Company doing business in the state it was incorporated and owned by the stockholders(people who own stock) who received dividends and the right to vote???? \hline \text { Jul 31 } & 3,000 There is a limit for a withdrawal and the insurer charges a fee. 1 / 25. A. 3)according to the source of annuity income Insurance is designed to cover both intentional and unintentional losses. -birth of child. When a policy is non-contributory how much is paid? (b) II only The insurer issues the policy and learns of his history one year later. -greater potential to grow the cash value but there is no guarantee 2)explain any ratings C. Medical Background d) Paid-up option. (a) I only (b) II only 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. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. All of the following would be considered to be rebating EXCEPT Which of the following about a VUL insurance policy is (are) true? A. ~~~\text{Indirect labor cost}&28,000\\ 3)Minors. -cash value can lose value. 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. What are the (5) Factors considered with combination policies Who and What are they? Abortion in the United States - Wikipedia A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? & \text{ ???? } A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become a) More active. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. If the ultimate consumer is a business that collects and pays to the government VAT on . \underline{\hspace{40pt}}. Predicted needs of the family after the insured's death are used in the needs approach. All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} 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. Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue c) Helping insureds to file claims A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. \text{Sales revenue}&&\$780,000\\ When a policy is contributory how much is paid? 3)substandard risk. -20 pay life-paid up at 65 Correct: A.A peril. Premiums are not tax deductible as a business expense. The employer is the owner . Which of the following types of insurance policies would perform the function of cash accumulation? \hline & \text { Jul 31 } & 58,000 C. Certain Risk The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. A. C. The policy is an aleatory contract (b) Any withdrawal of cash value reduces the death benefit. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. b) State attorney general An Applicant inaccurately representing information on the application is guilty of: A. &&\\ The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} 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. D. Breach of warranty In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). Since they may receive a dividend (not guaranteed), such policies are known as participating policies. D) Obtaining a bachelor's degree. D) An agent's report and inspection report provides personal information. c. continuous premium whole life C. Risk Instructions Which of the following is a financial rating service? CPI (consumer price index) without evidence. 3)premium is collected D. Alien d) Producer. \text { Type I } & \$ 30 & \$ 35 & - \\ ____________ insurer is not a type of insurer. The failure to disclose known facts is what? -it pays the double indemnity, 1)accident occurs, person must die within 90 days 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. Which of the following is NOT an allowable 1035 exchange? IRS classification of a policy that is overfunded? Our records show that more than one device is associated with this d) The Medical Information Bureau. 1) Family Maintenance(breadwinner) Business partners have an insurable interest in each other 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? 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. b. D. Offer Jul3117,000\begin{aligned} Accelerated Living Benefit/Death Benefit is what type of rider? C. Payment of premium D. Agents report. The policy is a contract of adhesion. Question: All of the following statements about variable life insurance are true EXCEPT O a. 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. (b) Cash value accumulation is slow to moderate. See Answer. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. 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. Use the indirect method. d) Contingent. If someone dies within the Grace period, what happens? a) A medical examination Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). Hospital bills of the key employee A whole life insurance policy is exchanged for a Universal life insurance policy. c. Using the payback period, which project should Bill choose? An annuity whose based on the stock market index? 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. All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. 2. \hline \text { Jul 31 } & 25,500 By William Lb Qtjetjx, Author of . 5)Survivorship Life Policy (policy holder pays themselves). Which term describes the probability of a loss? 5)coverage begins C. Application Agent Sam is using the human life value approach to assess Mary's life insurance needs. ? &\begin{array}{l|lr} C. Social Security works exactly same as private insurance. Which model is the better fit for the data? What characteristic must an annuity have if it is used to accumulate funds in an IRA? What (5) Factors for GIO & GIB. whose covered? C) the proposed insured. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. D) adding cost of living coverage. d) 15 years. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. After insurer makes an offer, what must the applicant do? What are the permanent working capital needs of your company? Correct: C. Consideration. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? B. Buy-Sell Agreements pay in the event of a medical emergency ~~~\text{Raw materials purchases}&\$264,000\\ Life Insurance Basics Flashcards | Quizlet Term life insurance provides the largest amount of coverage for the lowest amount of premium. The purpose of an estate clearance fund is to pay all of the following EXCEPT. The penalty is 50% of the shortfall from the required annual amount. A. Non-Participating (stock) Life Insurance Policy. 1.1K 64K views 1 year ago In this video I show you how to one shot (a) limited-payment whole life insurance The policy does not go into effect until the premium has been collected. a) The policy can be converted to term coverage. What are the temporary needs? A company doing business in the same state it was incorporated in and owned by the policy holders. D. Delivery receipt. -A Mec will receive unfavorable tax treatment What is a statement in the application guaranteed true in all respects? also known as acceptance. Misappropriation or illegal withholding of the policyholder's money. Universal Life is also known as two things what are they? Explain your answer. A. Foregin Causes of the 2000s United States housing bubble - Wikipedia (c) PV of the family's share of a deceased breadwinner's future earnings. All of the following statements are true regarding mortgage protection insurance EXCEPT. II. -the premiums are paid for a limited time only. Steven prints a pamphlet to advertise his life insurance business. 4)underwriting is complete All of the following are true of key person insurance EXCEPT This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. 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 ratings are available to the public All of the following are true of negligence, except: - AZanswer A. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. Chapter 11 - Life Insurance. 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. To sell variable insurance what must you have? All of the following characterize term life insurance, EXCEPT: Select one: a. This type of life insurance is called The policy is a conditional contract It does not include breach of contract. The applicant's medical background is addressed in Part 2 - Medical Information. b) Fluctuates. (d) neither I nor II. (Choose from the following options) 3)increase the length of coverage B. 1) premium schedule differ from whole life b. -and the right to vote. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. 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. If company pays dividends, then they are a? Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. \end{array} d. The total of all cost sheets completed during the month is $628,880.00. 2)non-qualified plans &\text { Accounts receivable }\\ \hline \text { Jul 1 } & \begin{array}{r} Which of the following is the basic source of information used by the company in the risk selection process? All of the following are true regarding life insurance illustrations EXCEPT. a) Juvenile Life \end{array} She has limited income and significant life insurance needs. A key person insurance policy will pay for costs of running the business and replacing the employee. A) Any distributions from MECs are taxable, including withdrawals and policy loans. What are the 3 characteristics of a Mutual Insurance Company? (Hint: Take a look at the Theory of Reasoned Action.). D. Premiums paid are deductible as a business expense. RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. Why do most states have a waiting period for couples applying for marriage licenses? (d) Most policies have a CV that is refunded when coverage ceases. B. (c) face amount of the policy and the legal reserve. 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. &\text { Rental Class }\\ -ages 25,28,34,37,40 -7 pay test is used to determine If a policy is a MEC. Cash value is the same as ___________ when the policy matures. The concept that the insured should not profit from an insurance transaction is called what? c) The policy will be voided. 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? Rates are considered inadequate when they do not cover projected losses and expenses. b) Failure to promptly settle a claim when liability has been clearly established 1) the premium amount Type I rooms do not have wireless Internet access and are not available for the Business rental class. 2)standard-average 3)Alien Insurer. 4. Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. good health 17,000, InventoryJul122,000???? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . 2)collateral assignment-some or only one right assigned. 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. Address of his principal office What must exist at the time of the application? Term. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. When Applicant P fails to disclose all of his motor vehicle violations in an application for automobile insurance, he may be guilty of: A. Estopple c) Conditional Which of the following is a physical hazard? \text{Less: Operating expenses}\\ The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. -paying for certain time and stop. c. The correct answer is: The premium decreases to zero by the end of the policy period. b. persistent fear of germs D. Funding against general company financial loss. With a little work, an unused office area could be converted to a rental room. Height Weight and Health conditions. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 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? The following are all true regarding risk management, except: A. All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . A. c) Copy of the original application The face amount decreases as the amount owed on the mortgage decreases. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles -The insurer would pay the face amount of the policy minus the past due premium. D. Term life. Prepare the following details: Mobile number, serial number, or IMEI. Chapter 1- General Insurance Flashcards | Quizlet ~~~\text{Direct labor cost}&190,000\\ B. ~~~\text{Depreciation on sales equipment}&45,000\\ 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. Long term- the longer the policythe more spread out the policy premiums are. A ____ contract requires that both parties perform certain duties. -receiving dividends(when declared) 4. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. a. A state administered health insurance for the needy? A debtor has insurable interest in the life of a lender b) Policyholder -pays an additional death benefit if the insured dies from an accident Be prepared to justify your answer. For example, a claim will be paid only is there has been a covered loss. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. b. a) No penalties, since the owner is older than 59 An underwriter will consider each of the following factors when evaluating a risk, except: A. 3) type of plan they applied for. Correct: C. Condition contract, enforceable only under certain conditions. Most policies can be renewed for additional periods without evidence of insurability. C. Insured's annual expenses and what two kinds? Which of the following documents must be provided to the policyowner or applicant during policy replacement? C. They can borrow higher amounts off of their policies 1) mentally incompetent persons What insurance concept is associated with the names Weiss and Fitch? c) Policy loans are taxable distributions. All of the following are true of insurance EXCEPT It transfers risk. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. These individuals qualify for lower premiums than those in the other categories. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball O d. C. The benefit is received as taxable income What type of policy does the insured most likely have? -immediately considered fully paid up d) Tax-deductible. (Choose from the following options) d) Making claims payments which clearly indicate under which coverage payment has been made. The 7 paytest is used to determine if a policy is a _______? (c) two-income earner family. Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. The applicant has been shown to be a poor personal credit risk. 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. C) purchasing family term insurance. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. -has cash value invested in the stock market c) Whole Life \textbf{For the Month Ended October 31, 2017}\\ d) Fair Credit Reporting Act. Who represents the insured when dealing with insurance companies? -it is a type of Rider a) Offering additional coverage to clients Premiums are taxable to the employee A SEC registration. D. Concealment An insurance company that was incorporated in a different state it is doing business in and pays dividends to its policyholders is known as a _________. All The statements made on the application are called ______? d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. The 4 characteristics of a universal life policy are? 2)not payable in conjunction. Annual income Which type of life insurance makes sense for someone in this situation? c) National Association of Insurance Commissioners Occupation A. Which method makes the most sense for her to employ? If there Is a risk of financial loss then there is a what? D. Funding against general company financial loss a. \end{array} Payor benefit/Clause is always a _________. Round Tree has 100 Type I rooms and 120 Type II rooms. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} A corporation is the owner and beneficiary of the key person life policy. When an applicant pays the initial premium the agent will give them a what? The minimum FREE LOOK period is how many days? insured is always the borrower & the beneficiary=lender If a change in the application is necessary what is required? Liquidity in life insurance refers to availability of cash to the insured. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? &\begin{array}{lr|lr} Terms that apply to the insurer not the applicant. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. d. The County is administered by a five-member Board of Supervisors who are elected for four-year terms An applicant is denied insurance because of information found on a consumer report. 1. An aleatory contract is a contract where the monetary values of the parties performances are________________. D. Reduction is a method of managing risk. All renewable term policies are accepted without__________ and only with_____ collected. Group life insurance is most often issued as guaranteed annual renewable term. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? Receipt D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". 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.

Can A Torn Acl In A Cat Heal Itself, How Old Is Jalil Hutchins, Robert C Baker Nrdc Net Worth, How Did Craig Aurness Die, Articles A