all of the following are true of insurance exceptall of the following are true of insurance except

There is no limitation on the number of key employee plans in force at any one time. Carl would like to purchase life insurance. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? 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? insured is always the borrower & the beneficiary=lender A. What (5) Factors for GIO & GIB. whose covered? Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. 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. 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). Who represents the insured when dealing with insurance companies? (d) indeterminate-premium whole life. He would also like to invest in a mutual fund. A false statement in the application for insurance is_____________. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). C. Hazards (c) two-income earner family. Nature of risk Group Life Insurance Flashcards | Chegg.com & \text { Depr } & 3,000 \\ C. Buy-Sell agreements are normally funded with a life insurance policy A policy that does not pay dividends to policyowners is a A. Empire Company is a manufacturer of smart phones. B. B. Aleatory contract -greater potential to grow the cash value but there is no guarantee What else must he include? 2)Increase the face value a) Accepted accounting principal. -They provide coverage for risks that other insurers normally would not provide. Chapter 3.2 - Subjecto.com A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. The applicant has been shown to be a poor personal credit risk. d) Paid-up option. (c) They decrease at a constant rate. Which of the following documents must be provided to the policyowner or applicant during policy replacement? Which of the following statements concerning buy-sell agreements is true? All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. DONT PICK IT!!!!!! (b) Most policies can be renewed without evidence of insurability. A) loss reserves 2. A. C. Independent rating services evaluate and rate the financial ability of insurance companies The Boyle family can be described as a All of the following are true of insurance except: Which of the following is NOT true about insurance? b) Policyholder Which of the following does not constitute the consideration in the insurance transaction? 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. (a) universal life insurance. Its controller resigned in October 2017. The correct answer is: Premiums are typically paid by the lender. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. 2)interest sensitive The applicant accepts the invitation by paying the ___________. 4)underwriting is complete If the initial premium is not paid with the application, the agent will be required to collect the premium at the time of policy delivery. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? a. mentally counting backward from 1,0001,0001,000 Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. 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) Claims result from losses by a peril insured against in an insurance policy. The applicant's medical background is addressed in Part 2 - Medical Information. C. Domestic d) Loss. C. Waiver of Estoppel It does not include breach of contract. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). (Hint: Take a look at the Theory of Reasoned Action.). b) Outline of coverage - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. (d) endowment insurance, Rachel needs permanent life insurance. Joe, Larry, and Curly own a small business. (d) free look provision. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. a) The policy can be converted to term coverage. Estimated direct labor costs for next year are$440,000.00. a) Indeterminate Premium c) Helping insureds to file claims A securities license. saalt menstrual disc how to use - evcc-estheticstraining.com (d) Premiums increase at an increasing rate upon renewal. The County is administered by a five-member Board of Supervisors who are elected for four-year terms Business partners have an insurable interest in each other Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. 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. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? -Prepays portion of face amount if diagnosed with terminal illness. James purchased yearly renewable term insurance. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. A) They must be given to all Life insurance applicants. . In order for the contract or policy to be valid or legal? Legal Purpose d) Accumulations are tax deferred. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? When applicant is not the insured ______________ must exist. Contract of adhesion Cash values can be borrowed at any time Healthcare in the United States - Wikipedia Are insurance company underwriters allowed to discriminate? Funding against financial loss caused by the death of a key employee D. The flexible premium. ____________ insurer is not a type of insurer. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet Who is not a party to the contract and receives the benefits when the insured dies? a) Consumer Privacy Act a) An agent offers the use of his lake house to person as an inducement to buy. (economy). Domestic Insurer d) Policy dividends. 1) insured gets higher amount Which of the following statements about universal life insurance is true? D. Workers compensation. The agent All of the following statements are true regarding mortgage protection insurance EXCEPT. Jul3117,000\begin{aligned} c) Variable Premium (b) level-premium method Concerning insurance, the definition of a fiduciary is What is the primary source of info used to determine insurability by the underwriting department? Contract or form of ownership is a ______________? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. Get more out of your subscription* Access to over 100 million course-specific study resources Level-increasing face value. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. All of the following statements concerning coinsurance are true, EXCEPT -Follows all conditions of contract & pays premium, -insurer says how policy works A debtor has insurable interest in the life of a lender Must have at least 32/40 question correct for positive rating. 1. 4. What constitutes the acceptance of an offer? 2)standard-average A producer wishing to appeal the final order of the commissioner would appeal to???? What insurance concept is associated with the names Weiss and Fitch? and what two kinds? B. Twisting 21,000 \\ \end{array} 2)explain any ratings Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? 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. I. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. (Choose from the following options) A company doing business in the same state it was incorporated in and owned by the policy holders. -birth of child. Surplus lines broker deals with admitted carriers only B. (c) PV of the family's share of a deceased breadwinner's future earnings. Which of the following about decreasing term insurance is true? (must exist at the time of application). 3)according to the source of annuity income B. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. All of the following statements regarding contracts of indemnity are true EXCEPT a. A conditional or binding receipt is given when an applicant does what? Most insurance policies contain a specific limit that an insurer will pay for a single claim. B. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds (b) variable life insurance (c) both I & II (d) neither I or II. B. Our records show that more than one device is associated with this C. Whole life Various life insurance programs for people who served in the military are called ______________? d. Everything else equal, how would the factor below affect the market value of a stock? When will coverage begin? \end{aligned} 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? 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. The debtor does not have an insurable interest in the life of the lender. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. Daycare is considered to be among these expenses. Which of the following is the basic source of information used by the company in the risk selection process? 4. C. Concealment 14,500 \\ All of the following statements are TRUE concerning Debtor Groups EXCEPT ? 3) Retaining the risk. 1) Family Maintenance(breadwinner) -Staged intervals (c) both I & II (d) neither I nor II. (a) matured. In a car accident dealing with ADB who covers the passenger? Your device, make and model. After Alex has made 20 premium payments, his life insurance policy is considered Eight Summoning Eyes need to be placed to summon the Ender Dragon and players need to have 450 Dragon Weight to have a chance of getting the sword. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. -paying for certain time and stop. 2) Binding Reciept. Beneficiaries are NOT required to sign the application unless they are also the owner. (a) present value of future benefits and the present value of future premiums. 2)the face amount (a) blended family. The employer is the owner . An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. For example, a claim will be paid only is there has been a covered loss. Costs of training a replacement A mutual insurance company does not have what? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. C. State Education Waiver Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. 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???? Correct: A. D. The benefit is received tax free The following are all true regarding risk management, except: A. c) Misrepresentation Last year, the couple got divorced. D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. A. C. Whole life 3)Rider expires 60,65,75. Correct: D. Concealment. B. 2)face amount is set 1. b) Universal Life c) Policy loans are taxable distributions. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. b) Promptly forwarding premiums to the insurance company Appoint a solicitor as his or her representative \textbf{Income Statement}\\ ? What are some of the questions asked on the application to determine the premium and risk classification of the insured? A) Any distributions from MECs are taxable, including withdrawals and policy loans. Pro rata liability applies. - 20 pay life-premiums paid for 20 years and paid up at 65 D. The policy is a bilateral contract The 3 categories of private insurers site of incorporation? Payor benefit/Clause is always a _________. If applicant is not the insured- then insureds signature is required 3)MIB=records of all previous insurances they had. 2)Foreign Insurer d) The policy can be reinstated by paying back all policy loans and premiums. The policy does not go into effect until the premium has been collected. C. The insurer is always required to pay the . Which of the following is an example of liquidity in a life insurance contract? 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. \hline \text { Jul 31 } & 3,000 Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? -Can't lose value Which of the families below is likely to have the least need for a large life insurance policy? Whats the cheapest type of permanent insurance? What is a statement in the application guaranteed true in all respects? "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. -guarantee a stream of income to the person purchasing it known as the annuitant. When a policy is non-contributory how much is paid? -usually mutual fund security Premiums are not tax deductible as a business expense d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. (a) Interest is credited monthly to a policy's cash value. a) Premium amounts and surrender values ~~~\text{Advertising expense}&90,000\\ Who might receive dividends from a mutual insurer? 17,000, InventoryJul122,000???? There is a limit for a withdrawal and the insurer charges a fee. c) Increases annually. A mutual insurer has no stock, and is owned by the policyholders. (c) variable life insurance. Misrepresentation, Concealment and Deceit are all examples of what? A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called Why do most states have a waiting period for couples applying for marriage licenses? 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. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. These individuals qualify for lower premiums than those in the other categories. (b) They increase at a decreasing rate. b. Solved All of the following statements about variable life - Chegg C. Application \hline (\$ 000) & 1 & 2 & 3 & 4 \\ b) Fiduciary responsibility. A key person insurance policy can pay for which of the following? Rating codes are assigned to show financial strength or weakness of each company rated Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. Rates. [Solved] All of the following are true of insurance EXCEPT It transfers Predicted needs of the family after the insured's death c) Smaller. 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. C. It's a decreasing term insurance. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. &\begin{array}{r|lr} A. -Take it or leave it contract C. Funding business continuation agreements B. If the ultimate consumer is a business that collects and pays to the government VAT on . A. b. B) Underwriters. 2)people under the influence of drugs or alcohol &\begin{array}{l|lr} \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. There are 2 parties of the contract- what are they? D. Accident It is used to help adequacy and equity in rates. (d) annual premium and the annual policy dividend. 2) profits are returned as dividends -the applicant must always initial the change b) Human life value approach The penalty is 50% of the shortfall from the required annual amount. If there Is a risk of financial loss then there is a what? Copyright 2009-2022 Tests.com LLC - All Rights Reserved. -But pays you interest, 1)Fixed annuity An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Question: 55. Which of the following types of insurance policies would perform the function of cash accumulation? Chapter 1- General Insurance Flashcards | Quizlet C. Loss of personal income Permanent Insurance have 3 words in common, what are they? D) Obtaining a bachelor's degree. What are the (5) Factors considered with combination policies Who and What are they? This is called. Retention, Avoidance, and Transfer are all _________________. Insurance is designed to cover both intentional and unintentional losses. 1) coverage is permanent Renew policy holder has an option- THE INSURER DOES NOT. \text{Inventory} & 201 & 505 & 905 & 52 \\ Correct: C. Condition contract, enforceable only under certain conditions. 3,000, AccountsreceivableJul121,000???? b) Fixed income Their premiums are lower Only the MIB will provide information about an applicant's medical history. B) Fiduciary refers to a position of trust. IN WHITE RAIMENT. C. Tax Status B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. The cost of a living rider is calculated by what? B. Insureds current and future income Chapter 3 part 1 Flashcards | Quizlet Chapter 4.1 : Life Insurance Flashcards | Chegg.com Whats the "take it or leave it contract"? Tax-qualified annuities are subject to IRA maximum contribution limits. Weiss and Fitch are two of these services, although there are more. (Choose from the following options) (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. don't pick binding receipt at all on test. 2)non-qualified plans Round Tree has 100 Type I rooms and 120 Type II rooms. c) Guides describing company financial integrity c. The purpose of an estate clearance fund is to pay all of the following EXCEPT.
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