What type of insurance policy may be used to fund this agreement? What determines the amount of each installment paid in a life income option arrangement? A domestic insurer issuing variable contracts must establish one or more.. Which of the following acts would not get an insurance producer terminated "for cause"? Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal. Synonym for a substandard risk classification. When an employee terminates coverage under group insurance policy, coverage continues in force for how long? must ensure a pair that's benefit claim after receiving the product of death? In which of the following situations is it legal to limit coverage based on marital status? The owner, however, does not have to be the one who receives the benefits; it could be the annuitant or the beneficiary. Which of the following would be required to be licensed as an insurance producer? He dies in a freak accident on June 1. Which of the following best describes the act? In this state, a temporary license may be issued for any of the following reasons EXCEPT. C Dividends from a mutual insurer. B Mailing an agency brochure to a prospective client If the corporation collects the policy benefit, then What is the best reason to purchase life insurance rather than annuities? The annual premium of $200 was due on February 1; however; the insured failed to pay the premium. C This misstatement may result in? B Advertise & solicit business as an insurance counselor or consultant C Limited lines Which of the following is a true statement regarding taxation of the accelerated benefits? A 15 "At the time of the application" is when interest must exist. The policy contained an accidental death rider, offering a double indemnity benefit. Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. Rebates are allowed if it's in the best interest of the client. An applicant for a counselor's license must possess a reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel, as well as a reasonable understanding of the Michigan insurance code and possess a good business reputation and good moral character. D Collecting a lower premium than what's specified in a policy as a token of client appreciation. The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the.. Life income joint and survivor settlement option guarantees. During replacement of life insurance, or replacing ensure musky which of the following? The following are nine technical accounting terms introduced or emphasized in this chapter: ResponsibilitymarginTransferpriceCommonfixedcostsContributionmarginCost-plustransferpriceTraceablefixedcostsPerformancemarginProductcostsCommittedfixedcosts\begin{array}{lll}\text { Responsibility margin } & \text { Transfer price } & \text { Common fixed costs } \\ \text { Contribution margin } & \text { Cost-plus transfer price } & \text { Traceable fixed costs } \\ \text { Performance margin } & \text { Product costs } & \text { Committed fixed costs }\end{array} Commissioner. All riders that will cause the death benefit to increase? If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a? Assuming he never changed his beneficiary, the policy proceeds will go to Who can request changes in premium payments, face value, loans, and policy plans? All of the following are true regarding rebates EXCEPT a) Rebates are only allowed if specifically stated in the policy. D A termination issued by the appointing insurer. In the best interests of the client, rebates are allowed. Rebating is the practice of returning a percentage of the payment or the agent's/fee broker's on the charge to the covered, as well as additional motivators to do company with a certain insurer. A What policy would have an IRS required corridor or gap between the cash value and the death benefit? Required by state law to be included in the policy, and cannot be altered by the policyowner. All of the following actions are considered rebating except sharing commissions with other licensed and appointed agents An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. The producer could be found guilty of Home; About Us. Which insurance arrangement will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? Cash surrender, extended term, reduced paid-up. C Fine If an insured continually uses the automatic premium loan option to pay the policy premium.. The least expensive first year premium payment is found in.. What determines the cash value of a variable life policy? D Any time in the past. B Applies to life, annuity, and accident and health licensees only. And employee has group life insurance through her employer. When would a misrepresentation on the insurance application be considered fraud? If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant What policy component decreases in decreasing term insurance? An appointment by an insurer is based upon the person maintaining a valid insurance license. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. And insurance producer license may be renewed at the producer has paid the applicable fees, submitted the renewal form to the commissioner, and.. Having a client in inducement to a sale not stated in the policy is an unlawful practice known as? Question is All of the following species are considered coliforms except, Options are (A) Enterobacter aerogenes , (B) Klebsiella pneumoniae , (C) Salmonella typhi , (D) Escherichia coli , (E) , Leave your comments or Download question paper. Shopping for electric motors can be tricky. If an insurance company has published a brochure that in accurately portrays the advantages of a particular insurance policy. If an insurer terminates a producer, the Commissioner will receive a notification. Which provision of a life insurance policy states that the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? In this case, what will the policy beneficiary receive? What is this an example of? Which of the following provisions would NOT be found in Term Life Insurance? D. A salaried employee who advertises and solicits insurance. C Defamation. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. If an insured surrenders his life insurance policy, what is true regarding the cash value of the policy? 30 days. The policyowner of a Universal Life Policy may skip paying the premium and the policy will not lapse as long as.. A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What settlement option should the policyowner choose? In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. Rebating can be anything of . An agent offers to share his commission with a policyholder. Paid cash to cover desk purchased on account. Licensed in the state where the individual resides. D A license to practice law. A policyowner who is also yeh insured wants to name her husband as the beneficiary of her life policy. A. Misrepresentation. What is true of the cash surrender nonforfeiture option? If an insured continually uses the automatic premium loan option to pay the policy premium. Death benefits payable to a beneficiary under a life insurance policy are generally. What are the three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term: Best description of what an annuity period is: Policy which allows the partial withdrawal, or surrender, of the policy cash value. It is illegal to participate in any boycott, coercion, or intimidation that is intended to restrict fair trade or create a monopoly. An out-of-state producer wants to start selling insurance in this state. In Michigan the state's continuing education requirement A Producer regulations and testing requirements. Which of the following would require an individual to stop participating in a specific activity if the Commissioner believes to be violating the Insurance Code? A cease and desist order requires an individual to stop doing a specific activity that the Commissioner believes to be violating the Insurance Code. any person acting as an insurance producer without a valid license may be fined up to. This is a personal use of life insurance known as. Which of the following is true? A In the preceding 12 months. Which of the following allows different operating systems to coexist on the same physical computer? Rebating is an unfair trade practices and is regulated by law all of the following would be considered to be rebating except When twin brothers applied for life insurance from company a, the company found that while neither of them smoke and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the . Children's rider are term insurance covering all of the children in the family, including: What explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy? MI Life Insurance Policy Provisions, Options, Federal Tax Considerations for Health Insuran, Qualified Plans, and Federal Tax Consideratio, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. Only any excess of value is taxable as income. A What is the name of the insured who enters into a viatical settlement. In classifying a risk, the Home Office underwriting department will look at all of the following.. A generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process. Which of the following individuals could qualify for a temporary insurance license? What is this called? Defamation is making statements that are false as to the financial condition of any insurer and which are calculated to injure any person engaged in the business of insurance. = 45/20 Brand managers can use Twitter strategically to accomplish all of the following, except: A local coffee shop conducts a survey of area residents who enter each one of the coffee shops in the area and learns that 85% desire an organic, fair-trade option. Who is the main purpose of the seven-pay test? After five years, she decides to leave the company and work independently. How much would the beneficiary receive from the policy? B Twisting. Variable life insurance is based on what kind of premium? The designee of a producer that is called to active service with the Navy. The accelerated benefits provision for an early payment of the death benefit when the insured.. An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. You should now have gotten the answer to your question Rebating is an unfair trade practice and is regulated by law. He wants to withdraw some money in order to pay medical bills. C Consists of completing 24 hours of CE each biennium. Who is personally liable for all contracts of insurance unlawfully made with in Tennessee on behalf of an unauthorized insurer? Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as? B Coercion For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are, Amount of coverage is determined according to nondiscriminatory rules, individuals covered, under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability. When may an insurance company use suicide as a defense against paying a death claim? = 15 * 3/20 An annuity owner is funding an annuity that will supplement her retirement. Is a program that assesses and reports information about various computer resources and devices. All of the following are true regarding rebates EXCEPT. This is considered to be an unfair claim settlement practice ________________ are owned and controlled by their policyholders. If the corporation collect the policy benefit, then. C Defamation When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. Brokers and financial advisors are prohibited from accepting rebates since they may create conflicts of interest. C Law of large numbers there is no provision in the insurance code that allows for a temporary licensed to be issued on behalf of a producer. All the following are business uses of life insurance: If I retirement plan or annuity is "qualified," this means Who is the owner and who is the beneficiary on a key person life insurance policy? All of the following could own a group life insurance EXCEPT A group needing low-cost life insurance An applicant for a producer's license has successfully completed all of the steps to obtain the license. f. Get an answer. B False advertising. In comparison to consumer reports, what best describes a unique characteristic of investigate consumer reports? An insured pays $1,200 annually for her life insurance premium. Within how many days of this notification must the producer be sent a copy? And employee quits her job where she has a balance of $10,000 in her qualified plan. B Sending a $20 gift certificate to the insured's employee after the insurance has been effected as a thank you for the referral What type of life insurance policy would be best suited to this situation? Although the appointment is made by the head of the Insurance Department, that person leaving the office does not terminate existing appointments. Term used to name the no taxes return of unused premiums? If a producer discusses policy dividends in a sales presentation, what statement must the producer also make? In return, the insurer promised to pay benefits in accordance with the terms of the contract. A) An agent offers to share his commission with a policyholder, B) An agent offers tickets to a baseball game as an inducement to buy insurance, C) An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him, D) An agent offers the use of his lake house to person as an inducement to buy, Answer:C) An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him. The requirement that an agent not co-mingle insurance monies with their own fund is known as? B Asked 11/28/2019 3:15:17 PM. A temporary license in this state is valid for a maximum of Which road apply for the agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? Which of the following best describes this practice? In a direct rollover, how is the money transferred from one plan to the new one? A man decided to purchase a $100,000 Annually Renewable Term Life Policy to provide additional protection until his children finished college. 1 to 50. It is the premium paying period that is limited, not the maturity. B D Inviting prospective clients to the grand opening of the producer's new office. The premiums paid by the employer in a business life insurance policy are. An insured pays an annual premium to his insurer. B Suspension of authority The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called? Group life insurance is a single policy written to provide coverage to members of a group. D Misrepresentation, How much is an agent's appointment fee? These are all considered to be Unfair Trade Practices, which are major violations that can lead to heavy penalties. B 7 days If she decides to do a direct transfer from her plan to a traditional IRA, how much will be transferred from one plan administrator to another and what is the tax consequence of a direct transfer? A Cannot be extended or waived under any circumstances. Why would removing a trade restriction, such as a tariff, lead to more rapid economic growth? If an insured withdraws a portion of the death benefit by the use of this rider, the benefit payable at death will be reduced by that amount plus.. What would be the face amount of the new term policy? 180 days. C$2,000 Each of the following statements may (or may not) describe one of these technical terms. Weegy: A basic position in American foreign policy has been that America must defend its foreign interests related to Weegy: 15 ? D$5. What best describes this practice? An insured has a life insurance policy from a participating company and receives quarterly dividends. The insured had his wife named as the beneficiary of his life insurance policy. A candidate for life insurance producer's license must complete how many hours of prelicensing education? A. All of the following are penalties for submitting fraudulent claims to the insurer EXCEPT Two or more variables considered to be related, in a statistical context, if their values change so that as Cellular respiration is a process that all living things use to convert glucose into energy. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. B. the designee of a licensed insurance producer who enters active duty in the US Armed Forces What describes the tax advantage of a qualified retirement plan? A Stocks, securities, or bonds. Discriminating between individuals of the same class with equal life expectancies, or by reason of race, nationality, or ethnic group would be considered unfair discrimination. D$2,000. C Illegal under any circumstances Are you having trouble answering the question Rebating is an unfair trade practice and is regulated by law. A banker is ready to close on a customer's loan. All of the following actions are considered rebating EXCEPT sharing commissions with other licensed and appointed agents refunding part of the premium as an inducement for purchase offering special dividends offering anything of value not specified in the policy A sharing commissions with other licensed and appointed agents 18 Q The "accumulation period" is the period of time over which the annuitant makes payments (premiums) into an annuity. A A good business reputation and good moral character. Last year, she received a dividend check from the insurance company that was not taxable. 45 The producer could be found guilty of? All of the following would be considered to be rebating EXCEPT? Which of the following is not a standard mounting dimension for an electric motor? Both the offer and acceptance of a rebate are illegal. A Misdemeanor Concerning the taxation of premiums in a key- person life insurance policy is: Internal revenue code provision that specifically provides for an individual retirement plan for public school teachers is a(n), Example of liquidity in a life insurance contract. Confirming future dividends in a life insurance proposal B The regulation of the insurance industry primarily rest with. 10 czerwca 2022 . Which statement best defines an insurance producer? Published by at June 10, 2022. B. Twisting. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 index. D False advertising. Which of the following would NOT be considered rebating? Why is an equity Indexed annuity considered to be a fixed annuity? If an insured surrenders his life insurance policy, which statement is true regarding the cash value of the policy? C Dividends from a mutual insurer. D False financial statement. B Employer contributions are tax deductible as ordinary business expense, funds accumulate on tax-deferred basis, employee and employer contributions are not counted as income to the employee for income tax purposes, They are tax free to terminally ill insured, Buy-sell agreements are normally funded with a life insurance policy, The plan must be communicated to all employees, the plan must be for the exclusive benefits of the employees and their beneficiaries, the plan must be permanent, written and legally binding. Categories . What option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? The minimum age at which a person can sign a life insurance application is. Unintentional misspellings are not a misrepresentation. Correlation and Causation What are correlation and causation and how are they different? Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? They could be sold for an amount greater than the current cash value, they involve insurance policies with large face amounts, they could be use for a key person coverage. SUGGESTIONS FOR PREPARING SPEAKING NOTES While several of these reminders might strike you as obvious, speakers often ignore them when preparing to speak. D Imprisonment. You dont have to worry about it anymore. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as Because of this, the company charged him a higher rate for his insurance. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. A corporation is the owner and beneficiary of the key person life policy. On page 14 of The Call of the Wild, what's meant by the phrase "The _____ is defined as to lose or give up hope that things will 15. Identify the types of assets assigned to each classification. Describe the relationship between potential difference and electrical potential energy. When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of Good Health, A presentation of non-guaranteed elements of a policy, One-sided: only one party makes an enforceable promise. The insurer has 15 days to file a notice of producer appointment. False advertising is the illegal practice of advertising or circulating materials that are untrue, deceptive, or misleading. Nonforfeiture values guarantee which policyowner? This is due to what provision? C Dividends from a mutual insurer. Annuities are most commonly used to fund a persons retirement, but they can technically be used to accumulate cash for any reason. A 60 days C A producer's license expires and is not renewed. C Two letters of recommendation attesting to trustworthiness, reliability, and good reputation The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. C Expert answered|GaelM|Points 4547| Log in for more information. Log in for more information. Thanks for choosing us. In order to receive a commission, a person is required to How many accounts must to Tennessee life and health insurance Guaranty association maintain? The consideration clause states that the value offered by the insured is the premium and statements made in the application, so it will include the information about.. A person whose activities are limited to producing insurance advertisements B A reasonable understanding of the Michigan insurance code What is the other term for the cash payment settlement option? Which nonforfeiture option provides coverage for the longest period of time? Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original dies, the payments will continue to a designated beneficiary? What type of policy is this? f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. Correct Answer: A. All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. If a life insurance policy develops cash no you faster than a seven-pay whole life contract, it is? If a policy had an automatic premium loan provision, what happens if the insured dies before the loan is paid back? The first three, Straight life, limited payment, and single premium, are the basic forms of whole life. The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. There are several types of whole life polices. C Which of the following is an example of a producer being involved in an unfair trade practices of rebating? Ultimately, the commissioner determined that there were a total of 25 separate violations. B. Defamation. c) Dividends are not considered to be rebates. This is called.. C Dividends from a mutual insurer. b) Rebating can be anything of economic value, given as an inducement to buy. This annuity plan is What is true regarding taxation of accelerated benefits under a life insurance policy? Before the Director will issue a license, a person must meet all of the following qualifications EXCEPT a. Which nonforfeiture option has the highest amount of insurance protection? A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. If a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal resident? All of the following would be considered rebating EXCEPT. D B An offer to share in commissions generated by the sale. Azanswer team is here with the correct answer to your question. (Example) A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. Within what time period after completing prelicensing education must an applicant file a certificate of education completion with the Commissioner? The death protection component of Universal Life Insurance is always.. A return of Premium term life policy is written as what type of term coverage? D Misrepresentation. Up to 12 excess credit hours of CE may be carried over to the next review period. Beneficiaries do not have to have an insurable interest in the policyholder. All of the following would be considered rebating except. Employer contributions are not included in the employee's gross income, SEP's allow the employer to make annual tax-deductible contributions of the 25% of an employee's earned income, SEP's have a higher tax deductible contribution limit than an IRA. June 14, 2022; jeep renegade 4x4 usata francoforte sul meno; astrological predictions for trump 2022 . The president of a company is starting an annuity and decides that his corporation will be the annuitant. A rebate is a type of purchasing discount that is paid as a reduction. [Show More] ual Depreciation x Number of years used) Acreage Reporting Date - The deadline for providing the insurer with an acreage report, which is used to determine the amount of . D Misrepresentation. What amount would his beneficiary receive as a settlement? An individual has been making periodic payments on an annuity. How can she obtain an individual policy? What happens when a policy is surrendered for its cash value? If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death? The dividend option in which the policyowner used dividends to purchase a term policy for one year is referred to as the An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. And employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his All of the following would be different between qualified and nonqualified retirement plans: An employee has group life insurance through her employer. What are examples of a business use of life insurance? The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. An insured misstates her age at the time the life insurance application is taken. An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to. Insureds who have been classified as preferred risk will On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are.
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