Last year, the couple got divorced. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. 2)Explain and collect any ratings 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 . (a) renewal provision When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? D) When replacement is involved, a producer must perform the following duties: sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. C. Independent rating services evaluate and rate the financial ability of insurance companies B. 2)standard-average Which of the following would provide an underwriter with information concerning an applicant's health history? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Represent the insured's interest 3)Rider expires 60,65,75. What is the purpose of a suicide provision within a life insurance policy? When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. The policyowner has a variety of options for investment of the cash value. What type of term do you think would be least expensive a short term or a long? -kids till 21 A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. 1)Domestic Insurer (a) I only I. On DUE DATE. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? D. Claim History D. The flexible premium. A. also known as acceptance. (b) Cash value accumulation is slow to moderate. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? D. Term life. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ c) Helping insureds to file claims Jul3117,000\begin{aligned} 4)defined contribution plans. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers A state administered health insurance for the needy? (d) neither I nor II. c) The policy will be voided. (d) endowment insurance, Rachel needs permanent life insurance. 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). c) Denying coverage after a reasonable investigation has been conducted All of the following are true regarding life insurance illustrations EXCEPT. Which of the following is the best reason to purchase life insurance rather than annuities? The Waiver of Cost of Insurance rider is found in what type of insurance? A) They must be given to all Life insurance applicants. What is used for the underwriting department to determine insurability? \text{ ???? } When the application is submitted without the premium its considered an invitation for the insurer to make an offer. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. &\text { Accounts payable }\\ A. 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? 2) form of interest sensitive life insurance(current market conditions influence the cash value) b) Fixed income Premiums are not tax deductible as a business expense. A. Foregin Concerning insurance, the definition of a fiduciary is An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? Pure Risk. Acceptance Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. \end{aligned} An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. What are two reasons that people deposit money in banks? c. 3)riders & exclusions After insurer makes an offer, what must the applicant do? An aleatory contract is a contract where the monetary values of the parties performances are________________. \textbf{EMPIRE COMPANY}\\ \textbf{For the Month Ended October 31, 2017}\\ The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. B) A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. Are insurance company underwriters allowed to discriminate? c) Low-income individuals and families Which of the following statements about universal life insurance is true? A ____ contract requires that both parties perform certain duties. \end{array} The correct answer is: The premium decreases to zero by the end of the policy period. -Can't lose value The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. 1) cash value earns interest (Choose from the following options) Get more out of your subscription* Access to over 100 million course-specific study resources What (5) Factors for GIO & GIB. whose covered? 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. 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. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ ~~~\text{Depreciation on factory equipment}&31,000\\ Which of the following is NOT a fraudulent and intentional deception of the truth? The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as d) Decreases annually. Term life insurance provides pure death protection. (6). A securities license. . 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. For this amount of production, total factory overhead is estimated to be $396,000.00. \end{array} 3. D) Insurance covers intentional losses as well as unintentional. 2) Binding Reciept. See Page 1. All of the following statements about term insurance are true EXCEPT. A. signed waiver of premium Estate conservation Who is responsible for making sure the application is completed properly and all necessary info is obtained? 3)certified public accountants, Is insurance that is provided by the Federal or State government B) Underwriters. 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. d) Military personnel. -ages 25,28,34,37,40 B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. - 20 pay life-premiums paid for 20 years and paid up at 65 B. How does having children affect the decisions that couples must make when considering a divorce? A mutual insurance company does not have what? A mutual insurer has no stock, and is owned by the policyholders. Statements in the application that are guaranteed true but later found to be false may result in what? All of the following statements about term insurance are trueEXCEPTa. \hline \text { Jul 31 } & 3,000 (b) reduced. b) Increasing Premium Hammond Corporation manufactures televisions. According to the entire contract provision, what document must be made part of the insurance policy? Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". Appoint a solicitor as his or her representative Which of the following statements about limited-payment life insurance is true? Increasing term Which of the following is a financial rating service? d) 15 years. 3)they provide insurance to members. 4)policy matures at age 100. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ Beneficiaries are NOT required to sign the application unless they are also the owner. (3), 1)bank trust officer C. The benefit is received as taxable income 4)explain policy & provisions Only one party is giving a legally enforceable promise- A one-sided contract is what? The Boyle family can be described as a 4)decrease premium paying period. They become permanently disabled -paying for certain time and stop. B. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. C. Insured's annual expenses O c. The policyowner has the option of investing the cash value in several investment accounts. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? The death benefit varies according to investment experience. 3)Family Policy(Limited but all fam members paid) Which of the following documents must be provided to the policyowner or applicant during policy replacement? Is interest always gained in Universal Life Policy? What contract characteristic does this describe? 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. Which of the following statements about a life insurance policy is (are) true? D. Concealment C. A husband or wife has an insurable interest in their spouse If someone dies within the Grace period, what happens? Investors become more risk averse. a) Aleatory A whole life insurance policy is exchanged for a term insurance policy. Cash values are available in whole life policies. the underwriting process is approved for: For example, a claim will be paid only is there has been a covered loss. -cash value can lose value. O b. the application is used at the primary source of info. All of the following statements are TRUE concerning Debtor Groups EXCEPT Question: All of the following statements about variable life insurance are true EXCEPT O a. 1)absolute assignment-all rights are assigned 1. What are (4) characteristics of permanent insurance? 14,500 \\ Hazard However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. D. A surplus lines broker deals with admitted carriers only Tax-qualified annuities are subject to IRA maximum contribution limits. It requires evidence of insurability for renewal. Which of the following is an example of an unfair claims settlement practice? -it pays the double indemnity, 1)accident occurs, person must die within 90 days 2) premiums do not change The issuance of a _________ is the result of the acceptance of an offer. \end{array} (c) two-income earner family. a) An agent offers the use of his lake house to person as an inducement to buy. D. An individual has an insurable interest in her or her own life. 2)face amount is set b) Fiduciary responsibility. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. 2. &\begin{array}{lccc} &\text { Retained Earnings }\\ 4. C. Funding business continuation agreements Be prepared to justify your answer. The person who receives the benefit when insured dies. 1. Insurance is considered a transfer of risk. (b) face amount of the policy and the total premiums that have been paid. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. 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. Who is not a party to the contract and receives the benefits when the insured dies? Instructions An Applicant inaccurately representing information on the application is guilty of: A. B. What is NOT invested in the stock market but pays you interest? 3)Consideration The shifting of risk of loss to a larger homogeneous group is known as what? Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. What kind of penalty would the IRA owner pay? The 4 characteristics of a universal life policy are? The money in a savings account e. The total of costs recorded on all sales invoices for the month is$654,052.00. Legal Purpose A. Life expectancy has increased in the U.S. over the last century. 5)coverage begins Most policies can be renewed for additional periods without evidence of insurability. 1)tax qualified plans What happens when a policy is surrendered for its cash value? 3)mortality charge. A. The following are all true regarding risk management, except: A. DONT PICK IT!!!!!! \end{aligned} Chapter 11 - Life Insurance. a. Which of the following is the basic source of information used by the company in the risk selection process? Only the MIB will provide information about an applicant's medical history. D. Breach of warranty She meets the definition of total disability under Social Security. 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 Which of the following about the use of ordinary life insurance is true? (d) Premiums increase at an increasing rate upon renewal. a. c) 15% for early withdrawal c) Copy of the original application may not be altered by an agent and must clearly state that it is not part of the contract. D. Financial Experience. All of the following are common characteristics of this coverage EXCEPT (a) They increase at an increasing rate. C. Tax Status What are the (5) Factors considered with combination policies Who and What are they? 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. 1)policy owner can increase/decrease/ or skip premium payments All of the other statements are true. 2)Foreign Insurer If you don't have health insurance, you pay all costs for healthcare and medical emergencies. All of the following are true of negligence, except: a. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? (b) Any withdrawal of cash value reduces the death benefit. (c) PV of the family's share of a deceased breadwinner's future earnings. C) They must contain a warning that actual results may vary. 4)Consumer report=credit, -shorter time span for paying premiums After everything is signed & premium is collected What does the agent give to the policy holder? The employer is the owner . 1)cont. What are some of the questions asked on the application to determine the premium and risk classification of the insured? -pays an additional death benefit if the insured dies from an accident C. Consideration Pertaining to insurance, what is the definition of a fiduciary responsibility? In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Most insurance policies contain a specific limit that an insurer will pay for a single claim. d) Paid-up option. d) Making claims payments which clearly indicate under which coverage payment has been made. b. An applicant is denied insurance because of information found on a consumer report. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. A. considers Lloyds of London an Alien insurer There is a limit for a withdrawal and the insurer charges a fee. Insurance transfers risk but it does not__________ risk. 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 What type of policy does the insured most likely have? 1) preferred-low Which method makes the most sense for her to employ? \text { Type I } & \$ 30 & \$ 35 & - \\ Jul313,000\begin{aligned} What else must he include? Correct: C. Concealment, A. 4) 3 components to the premium, The owner and the insured are different people. What constitutes the acceptance of an offer? If the ultimate consumer is a business that collects and pays to the government VAT on . All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. -20 pay life-paid up at 65 A whole life insurance policy is exchanged for a Universal life insurance policy. It is a type of tort. 2) profits are returned as dividends Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Life insurance proceeds Annually renewable term policies provide a level death benefit for a premium that Claim is still paid with an adjustment to the benefits. D. The benefit is received tax free 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. Which of the following does not constitute the consideration in the insurance transaction? Members are assessed to fund the corporation. Beneficiary's age is not a suitability factor. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. D. Unilateral Contract Domestic Insurer Most agents try to collect the initial premium for submission with the application. Steven prints a pamphlet to advertise his life insurance business. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. All of the following statements about the characteristics of Social Security are true EXCEPT A. Accelerated Living Benefit/Death Benefit is what type of rider? &\text { Rental Class }\\ Which of the following about decreasing term insurance is true? 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? d) The Medical Information Bureau. ________________ are the person who receives benefits payable upon death. a) No penalties, since the owner is older than 59 Which of the following statements concerning buy-sell agreements is true? Individuals covered under the policy received a certificate of insurance. (receive dividends & the right to vote). \end{array} What are (4) ways annuities are classified? Correct: B. The policy is a conditional contract 2)no cash-value Question: 55. ____________ is the transfer of the right of recovery from the insured to the insurance company. C. Risk The corporation also helps detect and prevent insurer impairments. Insurance companies can charge an interest rate based on the policyowner's credit report. A. Its controller resigned in October 2017. Foreign. Which model is the better fit for the data? A conditional or binding receipt is given when an applicant does what? -Voting. The 7 paytest is used to determine if a policy is a _______? A SEC registration. \hline & \text { Jul 1 } & \begin{array}{r} 2)Legal Purpose Who represents the insured when dealing with insurance companies? The companys president is concerned about the accuracy of the income statement. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. C. Application ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" a) Withdrawals are not taxable. 4. The following information is taken from the records of Hammond on November 30 of the current year. B. Misrepresentation, Concealment and Deceit are all examples of what? Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} A __________ represents the insured. Exclusion Categories 2. (a) I only (b) II only Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? D. Premiums are tax deductible as a business expense, B. & \text{ ???? } &\begin{array}{cr|} B. Nonadmitted Conviction of a felony involving moral turpitude. 2)Variable annuity What is the primary source of info for the underwriting department to determine insurability? D. Concealment c) Disclosure rule B. Compute DVDs net cash provided by (used for) operating activities during July. Quarterly working capital levels for your firm for the next year are included in the following table. The ___________ controls all rights of the contract. d) Older. 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. 4. To sell variable life insurance policies, an agent must receive all of the following EXCEPT Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. The primary purpose of buying an annuity is? Rates Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? All of the following statements are true regarding mortgage protection insurance EXCEPT. (b) current assumption whole life. (c) expired. C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. B. cash value increases while face value remains the same. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. -car accident not in conjunction with an illness B. Beneficiary's age All of the following are characteristics of group life insurance EXCEPT. II. &&\\ (a) limited-payment whole life insurance a) Accumulated at interest 2)Straight Life Compensating executives 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. What is a statement in the application guaranteed true in all respects? a) Payor rider. The replacing company notifies the replacement company. B. 3)2 death benefit option Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). 1)physical exam d) Buyer's Guide. C. Waiver of Estoppel The failure to disclose known facts is what? Level-increasing face value. A producer wishing to appeal the final order of the commissioner would appeal to???? \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. compulsion? (c) both I & II (d) neither I or II, Diane is a single parent. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. All of the following information about a customer must be used in determining annuity suitability EXCEPT -birth of child. C. The death benefit paid to the beneficiary Which risk management type is shifting the risk of loss to a larger homogeneous group? -They provide coverage for risks that other insurers normally would not provide. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Who might receive dividends from a mutual insurer? a) Types of mutual companies This is called. B. A) the agent. C. group credit life insurance does not build cash values. Receipt B. b) Unilateral 1) Competent Parties b) Cost of living rider. I. -greater potential to grow the cash value but there is no guarantee a) Agent's report C. They can borrow higher amounts off of their policies The applicant accepts the invitation by paying the ___________. d) Fair Credit Reporting Act. b. \textbf{Income Statement}\\ It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. a) The policyholders or stockowners of the company See Answer. A. All of the following statements about term insurance are true EXCEPT. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. This form of life insurance has fixed premiums and the cash value is not guaranteed. 3)Minors. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Which of the following is NOT an example of a business use of Life Insurance? Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? A. Predicted needs of the family after the insured's death are used in the needs approach. (Choose from the following options) If a change in the application is necessary what is required? 1) coverage is permanent (c) variable life insurance. C) An insurance contract must contain a copy of the original application.