A ______ will receive unfavorable tax treatment. Six Reasons the Loss is Excluded - MyNewMarkets.com &\begin{array}{l|lr} There is a minimum guaranteed interest rate on all sub-accounts. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. -tax free accumulation of borrowing. -policy holder adheres to it A. Correct: A. A policy that does not pay dividends to policyowners is a A. A. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. C. Whole life (a) I only (b) II only Chapter 4.1 : Life Insurance Flashcards | Chegg.com 3)2 Death benefits-(level/increasing) Who gets $$money when the policy holder dies? D. Offer 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? d. The total of all cost sheets completed during the month is $628,880.00. Consumer report c) Helping insureds to file claims 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. When will coverage begin? B. Benefits received are considered income taxable Whats the "take it or leave it contract"? The companys president is concerned about the accuracy of the income statement. 2)face amount is set Premiums are not tax deductible as a business expense Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. Reinsurance has 2 types of policys, what are they? A producer wishing to appeal the final order of the commissioner would appeal to???? -it pays the double indemnity, 1)accident occurs, person must die within 90 days Chapter 14/1: Group Health Insurance Flashcards | Quizlet B) Underwriters. B. Nonadmitted A. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. 2)FCRA(fair credit reporting act) checks MIB report. (b) Most policies can be renewed without evidence of insurability. B. \end{array} Our records show that more than one device is associated with this 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) An agent offers tickets to a baseball game as an inducement to buy insurance. Healthcare in the United States - Wikipedia Which of the following is the basis for a claim against an insurance policy? On DUE DATE. The following are all true regarding risk management, except: A. C. A surplus lines broker accepts business only from non- resident agents Cash values can be borrowed at any time B. D. Viatical settlement. Use the indirect method. B. 4)settlement options, 1)stand alone policy A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. \end{aligned} 2)no cash-value d. Most policies can be renewed for additional periods without evidence of insurability. c) The inspection report (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. An aleatory contract is a contract where the monetary values of the parties performances are________________. B. What is the purpose of a suicide provision within a life insurance policy? If you don't have health insurance, you pay all costs for healthcare and medical emergencies. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights a. whole life paid at 65 Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death? Acceptance Get more out of your subscription* Access to over 100 million course-specific study resources D. Financial Experience. The policy's cash value grows as the investments grow. insurable interest must exist. -the insurer sets the terms of the contract and the applicant must adhere to them. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. b) Copies of illustrations and application Payor benefit/Clause is always a _________. C. Social Security works exactly same as private insurance. A. 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. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Legal Purpose Prepare the following details: Mobile number, serial number, or IMEI. a) A medical examination Arrest History. c) Guides describing company financial integrity Coverage is available in $50,000 increments up to the maximum of $400,000. c) 15% for early withdrawal B. Beneficiarys age d) Fiscal responsibility. Estate Creation B. paperspast.natlib.govt.nz The purpose of an estate clearance fund is to pay all of the following EXCEPT. The employer is the owner . 2)can be sold as a rider to a whole-life policy. also known as acceptance. D. Funding against general company financial loss. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Candidate List of substances of very high concern for Authorisation All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. This form of life insurance has fixed premiums and the cash value is not guaranteed. 3)Alien Insurer. \text{Inventory} & 201 & 505 & 905 & 52 \\ 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. \end{aligned} 2)non-qualified plans Retention, Avoidance, and Transfer are all _________________. All of the following statements concerning coinsurance are true, EXCEPT C. Payment of premium Predicted needs of the family after the insured's death Warranty -A Mec will receive unfavorable tax treatment Principles of Risk Management and Insurance - Easy Notecards B. Buy-Sell Agreements pay in the event of a medical emergency All of the following statements about the settlement of a claim are true EXCEPT. 17,000, InventoryJul122,000???? B. Misrepresentation 1) Avoiding the risk &\text { Accumulated depr.-equipment }\\ (c) variable life insurance. 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. \end{array} B. Weiss and Fitch are two of these services, although there are more. \underline{\hspace{40pt}}. What type of insurer has no capital stock? What are the (5) Factors considered with combination policies Who and What are they? One sided contract is a ______________ contract. A. 1) premium schedule differ from whole life Correct: C. Consideration. 2)people under the influence of drugs or alcohol b) Adjustable life Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? Exclusions always exist, and there is a reason for each one. Pro rata liability applies. 1. He would also like to invest in a mutual fund. 3)certified public accountants, Is insurance that is provided by the Federal or State government b. D. The policy is a bilateral contract (d) neither I nor II. Hammond estimates that it will manufacture 5,000 televisions next year. \hline \text { Jul 31 } & 3,000 2)Foreign Insurer The agent Their premiums are lower B. -pays an additional death benefit if the insured dies from an accident c) Premium accountability. ___________ is the persons whose death triggers payment. Tom and Nancy Boyle provide financial support for their two children. \text{Sales revenue}&&\$780,000\\ 4) 3 components to the premium, The owner and the insured are different people. d) Buyer's Guide. Most insurance policies contain a specific limit that an insurer will pay for a single claim. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? Prior to October 2017, the company had been profitable every month. B. A mutual insurer has no stock, and is owned by the policyholders. Address of his principal office Any gain in the policy's cash value is . If the corporation collects the policy benefit, then 4)policy matures at age 100. -But pays you interest, 1)Fixed annuity Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. 5)Survivorship Life Policy (policy holder pays themselves). Insurance is designed to cover both intentional and unintentional losses. She meets the definition of total disability under Social Security. -The insurance dept. B) the applicant. c. Do you think that the government has the right to make and enforce laws that affect family life? d) Paid-up option. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. &\text { Retained Earnings }\\ When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. c) A person who handles assets or money belonging to others. Which of the following is NOT an example of a business use of Life Insurance? ch 7 Flashcards | Quizlet (c) Most policies can be converted to a permanent life insurance policy. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Estate conservation D. Accident (d) Premiums increase at an increasing rate upon renewal. 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 a) More active. IN WHITE RAIMENT. 4. Modification to a policy is a _______________? ____________ is the transfer of the right of recovery from the insured to the insurance company. d) Loss. &\text { Rental Class }\\ B) Passing examination with 75% or higher score. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Life insurance prodceeds Surplus lines broker deals with admitted carriers only 1) the premium amount B. a) Using arbitration when the insured and insurer cannot reach agreement \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ (Choose from the following options) Appoint a solicitor as his or her representative 2. The County is administered by a five-member Board of Supervisors who are elected for four-year terms Which of the following is an example of liquidity in a life insurance contract? a) Remains level. B. Which is generally true regarding insureds who have been classified as preferred risks? A. She has limited income and significant life insurance needs. 3)mortality charge. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health A) loss reserves 2. A key person insurance policy can pay for which of the following? Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 1) insured gets higher amount Which of the following statements is not correct regarding rates and premiums? b. persistent fear of germs Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? Empire Company is a manufacturer of smart phones. Is claim still paid if there is a misstatement of age or sex? a) Offering additional coverage to clients (3), 1)bank trust officer don't pick binding receipt at all on test. Hazard (a) I only (b) single-parent family. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} 1) Conditional Reciept A peril An insured is driving her automobile and strikes a large pothole that . (b) tax-free exchange provision \end{aligned} The 3 categories of private insurers site of incorporation? O c. The policyowner has the option of investing the cash value in several investment accounts. D. Premiums paid are deductible as a business expense. a) The policy can be converted to term coverage. 1) All requirements are met \textbf{EMPIRE COMPANY}\\ Life Insurance Basics Flashcards | Quizlet (b) Cash value accumulation is slow to moderate. A. 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. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? Which of the following about the use of ordinary life insurance is true? 3) Increasing Term. It is most appropriate when an insured needs lifetime protection. -has cash value invested in the stock market c) Denying coverage after a reasonable investigation has been conducted a) Accepted accounting principal. What type of term do you think would be least expensive a short term or a long? A. Round Tree has 100 Type I rooms and 120 Type II rooms. The policy is a contract of adhesion The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . II. c) Term life 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. - 20 pay life-premiums paid for 20 years and paid up at 65 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? Which term describes the probability of a loss? The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} Which of the following about decreasing term insurance is true? b) State attorney general For this amount of production, total factory overhead is estimated to be $396,000.00. B. & \text{ ???? } Which of the following is the basic source of information used by the company in the risk selection process? The primary purpose of buying an annuity is? The policy is a contract of adhesion. The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? Beneficiary's age b) Unilateral If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. 2) premiums do not change All of the following statements are true regarding mortgage protection insurance EXCEPT. -guaranteed/fixed/level payment, -Immediate "annuitization phase" a) Material change c) The policy will be voided. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? 1) preferred-low Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. &&\\ c) Needs approach C) Completing pre-licensing training. In this case, the applicant will most likely need to fill out a Statement of Good Health. b) 10% for early withdrawal When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? 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. Group life insurance is most often issued as guaranteed annual renewable term. \end{array} 3) Retaining the risk. d) Policy dividends. (c) two-income earner family. \end{array} The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Which of the following best describes a surplus lines broker? D. The ratings are available to the public He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. c) Comparisons with similar policies Limited-Pay Life & Single-Premium Policies? C. Hazards D) adding cost of living coverage. 2) standard risk a) Because the insured is currently not a drug user, his policy will not be affected. Height Weight and Health conditions. All of the following are true about health insurance except: b) Coverage ends and the policy cannot be reinstated. A policy summary usually includes all the listed information, and must be delivered along with a new policy. A. Instructions and what two kinds? 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? 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. Accelerated Living Benefit/Accelerated Death Benefit? Represent the insured's interest C. Waiver of Estoppel 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. 4. 2)interest sensitive Members are assessed to fund the corporation. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. (must exist at the time of application). B. B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. Executive office What else must he include? I. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 2)collateral assignment-some or only one right assigned. -Take it or leave it contract C. Insured's annual expenses (c) PV of the family's share of a deceased breadwinner's future earnings. C. Domestic The shifting of risk of loss to a larger homogeneous group is known as what? D. The benefit is received tax free Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. (a) renewal provision (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. An annuity whose based on the stock market index? 5)coverage begins \end{array} Their premiums are lower Which type of life insurance makes sense for someone in this situation? A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. 1)increase cash value & \text { Depr } & 3,000 \\ C) purchasing family term insurance. (a) I only (b) II only A Contract that binds only one party to future performance, is a (n): A. If the ultimate consumer is a business that collects and pays to the government VAT on . Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Business partners have an insurable interest in each other Prepare a pie chart of on-time delivery performance for last month. D. The flexible premium. You cannot sell a variable policy without what? The NAAR for a life insurance policy is the difference between the \hline & \text { Jul 1 } & \begin{array}{r} Is There An Objective Morality? IAI TV ADD( Accidental death and dismemberment??? It is a type of tort. B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. b) Human life value approach It requires evidence of insurability for renewal. If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. (receive dividends & the right to vote). All of the following statements are TRUE concerning Debtor Groups EXCEPT 1)Statement of continued good health d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. 2)Decreasing Term d) Performing reviews of insured's coverage. Appoint a solicitor as his or her representative D) An agent's report and inspection report provides personal information. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? What are some of the questions asked on the application to determine the premium and risk classification of the insured? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. C) the proposed insured. An applicant is denied insurance because of information found on a consumer report. 1) Competent Parties What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? Can term insurance be both renewable and convertible? What is a statement in the application guaranteed true in all respects? 4)decrease premium paying period. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? D. Delivery receipt. C. Unilateral contract 3. D. group credit insurance must have a suicide clause . c) Extended term B. *Both not taxable. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Hammond Corporation manufactures televisions. C. The insurer is always required to pay the . B) bonds 3. Is interest always gained in Universal Life Policy? D. Breach of warranty Which of the following statements is NOT true concering insurable interest as it applies to life insurance? 2)standard-average d) 50% tax on the amount not distributed as required. Flashcards - WA Life Law Practice Exam - FreezingBlue Contract or form of ownership is a ______________? When applicant is not the insured ______________ must exist. 3)Minors. 1.1K 64K views 1 year ago In this video I show you how to one shot Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . d) The policy can be reinstated by paying back all policy loans and premiums. -policyowners right provision All of the following statements about term insurance are true EXCEPT. 4. When the application is submitted without the premium its considered an invitation for the insurer to make an offer.
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