4. -Staged intervals 1)tax qualified plans The person who receives the benefit when insured dies. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? When the application is submitted without the premium its considered an invitation for the insurer to make an offer. An agent has authority to do all of the following, except: A. Countersign insurance contracts Accelerated Living Benefit/Accelerated Death Benefit? 4)Explain the policy and its provisions 3)substandard risk. \hline \text { Jul 31 } & 25,500 (c) Most policies can be converted to a permanent life insurance policy. ~~~\text{Raw materials purchases}&\$264,000\\ What type of term do you think would be least expensive a short term or a long? 4. -provides income for retirement 4)settlement options, 1)stand alone policy Explain your answer. . (receive dividends & the right to vote). What is an exchange of a whole entire life policy for another? d) The Medical Information Bureau. A Contract that binds only one party to future performance, is a (n): A. -The insurance dept. B. cash value increases while face value remains the same. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. good health c) Needs approach A. Fraud B. Which of the following is a physical hazard? D) the minor in a juvenile policy. (d) paid-up. C. Tax Status c) Conditional ~~~\text{Depreciation on factory equipment}&31,000\\ Which of the following is the basic source of information used by the company in the risk selection process? What are (4) ways annuities are classified? Daycare is considered to be among these expenses. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). \end{aligned} In this case, the applicant will most likely need to fill out a Statement of Good Health. Only one party is giving a legally enforceable promise- A one-sided contract is what? Who appoints the state insurance regulator in many states? d) All of the above. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . Which kind of agent enters into agreements with more than one insurer? C. Domestic Use the indirect method. b) The elderly If someone dies within the Grace period, what happens? A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers d) Contingent. Round Tree has 100 Type I rooms and 120 Type II rooms. C. Buy-Sell agreements are normally funded with a life insurance policy A. D. The benefit is received tax free. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. a) Offering additional coverage to clients 3)Minors. Which type of risk involves the possibility of loss or gain? The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. b) The policy will not be affected. B. 3)Rider expires 60,65,75. Is claim still paid if there is a misstatement of age or sex? There is a limit for a withdrawal and the insurer charges a fee. The policy is issued for one year and may be renewed annually with evidence of insurability. The storage of flammables in a fireproof container. AccountsreceivableJul1Jul3121,000???? a) Juvenile Life \hline && \text { Jul 1 } & 65,000 \\ A persons assets & liabilities at their time of death. \hline & \text { Jul 31 } & 58,000 O b. (c) PV of the family's share of a deceased breadwinner's future earnings. D. Workers compensation. -receiving dividends(when declared) C. The benefit is received as taxable income Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. 3)Alien Insurer. 4)defined contribution plans. D. Premiums paid are deductible as a business expense. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Business partners have an insurable interest in each other Any gain in the policy's cash value is . D. Concealment A. -it pays the double indemnity, 1)accident occurs, person must die within 90 days C. Application (a) I only (b) II only - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. Who might receive dividends from a mutual insurer? An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. A. signed waiver of premium b) Universal Life Statements in the application that are guaranteed true but later found to be false may result in what? A. Who would be eligible to obtain SGLI? B. this insurance is often written in connection with automobile loans. Certificate holders may convert coverage to an individual policy without evidence of insurability. 2)APS=medical records (b) Cash value accumulation is slow to moderate. c) An agent offers tickets to a baseball game as an inducement to buy insurance. A securities license. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? Which of the following is NOT an example of a business use of Life Insurance? 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? 3)Family Policy(Limited but all fam members paid) Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} The policy is a contract of adhesion a) Tax-qualified Warranty For this amount of production, total factory overhead is estimated to be $396,000.00. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. All of the following statements are TRUE concerning Debtor Groups EXCEPT b) Policyholder D. Department of Treasury 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. a) To limit the insurer's liability after the 2 year waiting period See Answer. The CAS number shown in an entry is typically . ? 1. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? Pertaining to insurance, what is the definition of a fiduciary responsibility? C. Application Foreign. A false statement in the application for insurance is_____________. B. Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. (2), 1)HIPPA The agent b) Hazard An applicant is denied insurance because of information found on a consumer report. Originating policy A. 1)Whole Life 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. 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. B. d) 15 years. insured is always the borrower & the beneficiary=lender Agents and producers must place business through an insurer with the lowest rated ($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?" Prior to October 2017, the company had been profitable every month. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. b) Conditional receipt (b) face amount of the policy and the total premiums that have been paid. c) Helping insureds to file claims * 50% is paid ? c) Counselor d. The total of all cost sheets completed during the month is $628,880.00. D. Concealment 4. AccountspayableJul1Jul3114,500??? Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. -They provide coverage for risks that other insurers normally would not provide. B. -guaranteed/fixed/level payment, -Immediate "annuitization phase" Endowments means policy is what(2) things? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. 1)Domestic Insurer -paying for certain time and stop. Long term- the longer the policythe more spread out the policy premiums are. Correct: A Insurance . To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. c) Comparisons with similar policies Why do most states have a waiting period for couples applying for marriage licenses? What contract characteristic does this describe? (Choose from the following options) A. ____________ insurer is not a type of insurer. Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ 3) Ordinary. considers Lloyds of London an Alien insurer There are 2 parties of the contract- what are they? when the applicant/owner is not the insured-3rd party Insurance is not designed to cover _____________ losses. Are insurance company underwriters allowed to discriminate? C. Funding business continuation agreements &\text { Retained Earnings }\\ All of the following would be considered to be rebating EXCEPT b. D. group credit insurance must have a suicide clause . A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} a) Types of mutual companies \hline \text { Jul 31 } & 3,000 B. II. The __________ branch of the state government influences public policy regarding insurance laws. B) The parent is responsible for the premium. What are the (5) Factors considered with combination policies Who and What are they? Correct: C. Concealment, A. 5)Explain when coverage begins The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Applicant pays premium to make agreement. Conditional contract means the policy holder does what? C. Consideration All of the following are true of insurance except: Which of the following is NOT true about insurance? This method of estimating . 3)semi-annual It is a type of tort. The NAAR for a life insurance policy is the difference between the A corporation is the owner and beneficiary of the key person life policy. All of the following information about a customer must be used in determining annuity suitability EXCEPT 1) coverage is permanent 3,000, AccountsreceivableJul121,000???? Economics questions and answers. \end{array} A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. 2)Decreasing Term A) loss reserves 2. C) An insurance contract must contain a copy of the original application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. A. Foregin Cause of potential loss to property such as fire, windstorm, hail, flood, etc. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Which of the following best illustrates a RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. Correct: C. Unilateral contract. The designation will be void/. c) To protect the policyowner B. 1)premium payment Department of Defense C. Whole life Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. -kids till 21 What is the difference between renewable policy holder & Insurer? What insurance concept is associated with the names Weiss and Fitch? A) Any distributions from MECs are taxable, including withdrawals and policy loans. A ______ will receive unfavorable tax treatment. \hline An underwriter will consider each of the following factors when evaluating a risk, except: A. &\text { Rental Class }\\ ~~~\text{Advertising expense}&90,000\\ In an insurance contract, the value that each party gives the other is called the: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. The policy does not go into effect until the premium has been collected. A policy that does not pay dividends to policyowners is a All of the following statements about term insurance are trueEXCEPTa. All of the following statements about term insurance are true EXCEPT. A contract between insurer and policy holder. A) They must be given to all Life insurance applicants. Whats the "take it or leave it contract"? For example, a claim will be paid only is there has been a covered loss. \end{array} Which risk management type is shifting the risk of loss to a larger homogeneous group? Tom and Nancy Boyle provide financial support for their two children. Which of the following statements about limited-payment life insurance is true? (c) both I & II (d) neither I or II, Diane is a single parent. ~~~\text{Selling and administrative salaries}&75,000\\ (a) limited-payment whole life insurance -Can't lose value Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? \hline (\$ 000) & 1 & 2 & 3 & 4 \\ Rates. Which of the following is the best reason to purchase life insurance rather than annuities? b) Fluctuates. 2)administered charge Participating policy. A surplus lines broker accepts business only from non- resident agents It is most appropriate when an insured needs lifetime protection. (b) Cash value accumulation is slow to moderate. ~~~\text{Rent on factory facilities}&60,000\\ C. Waiver When a policy has reached its final destination and can be paid out in full is when the policy has ____________? c) Accelerated benefit rider. b. persistent fear of germs Rating codes are assigned to show financial strength or weakness of each company rated (b) level-premium method b) Larger. Which model is the better fit for the data? Social Security is designed to provide a base of economic security B. What adds coverage and modifies coverage? Correct: A. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? 2)non-qualified plans When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. B) Fiduciary refers to a position of trust. (c) both I and II It has cash value that is invested into the stock market through mutual funds/securities. D. The benefit is received tax free a. mentally counting backward from 1,0001,0001,000 All of the following statements about universal life insurance are true EXCEPT Breach of warranty 2)attorneys d) Limited pay. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. B. Misrepresentation You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? Permanent Insurance have 3 words in common, what are they? 4)annual, Everytime you have a payment due. Dividends received by policyholders of a mutual insurer are not taxable. 3)defined benefit plans Increasing term To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. \textbf{For the Month Ended October 31, 2017}\\ (b) variable life insurance Most agents try to collect the initial premium for submission with the application. -cash value can lose value. The corporation also helps detect and prevent insurer impairments. (3), WHat is the difference between universal and whole life policies? b. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. C. Certain Risk B. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Their premiums are lower Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . a) The policy can be converted to term coverage. (a) matured. 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? Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? Suitability (b) reduced. C. They can borrow higher amounts off of their policies (d) indeterminate-premium whole life. b. The ___________ controls all rights of the contract. c. Using the payback period, which project should Bill choose? There is a minimum guaranteed interest rate on all sub-accounts. Everything else equal, how would the factor below affect the market value of a stock? still matures at age 100, -premium is paid off at one time B. When applicant is not the insured ______________ must exist. The insurer issues the policy and learns of his history one year later. D) Obtaining a bachelor's degree. What type of insurer has no capital stock? - 20 pay life-premiums paid for 20 years and paid up at 65 D. Alien C. Buy-Sell agreements are normally funded with a life insurance policy The parties in the insurance contract consist of whom? A. Compute DVDs net cash provided by (used for) operating activities during July. d) Buyer's Guide. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution A. The applicant accepts the invitation by paying the ___________. -policy holder adheres to it Insurance is designed to provide protection against which of the following? All of the following statements about the settlement of a claim are true EXCEPT. Prepare the following details: Mobile number, serial number, or IMEI. What constitutes the acceptance of an offer? C. Waiver of Estoppel The policy is a contract of adhesion. C. The insurer is always required to pay the . Jul313,000\begin{aligned} Acceptance Since they may receive a dividend (not guaranteed), such policies are known as participating policies. A) the agent. O c. The policyowner has the option of investing the cash value in several investment accounts. d. It does not require a duty to be owed. A. -low commissions C. Payment of premium Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. 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. *Both not taxable. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. 5)coverage begins 1) Avoiding the risk Pure risk 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? Predicted needs of the family after the insured's death Exclusion Categories Rebating is an unfair trade practice and is regulated by law. II. A. B) They illustrate the nonguaranteed elements of the policy. The County is administered by a five-member Board of Supervisors who are elected for four-year terms Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? O d. A. contract of adhesion How do premiums for yearly renewable term insurance change as an insured gets older? A life insurance license. Domestic Insurer B) A fiduciary is a producer who handles insurer funds in a trust capacity. compulsion? B. D. The face amount remains the same throughout the life of the policy. 2)collateral assignment-some or only one right assigned. Hammond Corporation manufactures televisions. e. The total of costs recorded on all sales invoices for the month is$654,052.00. D. An individual has an insurable interest in her or her own life. Coverage is available in $50,000 increments up to the maximum of $400,000. All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. a) A medical examination 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. Health insurance decreases your healthcare costs. Who is not a party to the contract and receives the benefits when the insured dies? 2)can be sold as a rider to a whole-life policy. This type of life insurance is called C. Medical Background A state administered health insurance for the needy? When an agent collects the initial premium from the applicant, the agent should issue the applicant a. All The statements made on the application are called ______? \end{aligned} ________________ are the person who receives benefits payable upon death. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. 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. the application is used at the primary source of info. c) Whole Life (c) face amount of the policy and the legal reserve. Which of the following is the basis for a claim against an insurance policy? cheating. 3)mortality charge. -insured can stop paying premiums at certain age or after a period of time (4), 1)monthly There is no limitation on the number of key employee plans in force at any one time. Predicted needs of the family after the insured's death are used in the needs approach. c) Extended term -its a rider In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? D) An agent's report and inspection report provides personal information. All of the following are characteristics of group life insurance EXCEPT. may not be altered by an agent and must clearly state that it is not part of the contract. B. Past-due interest on a policy loan is added to the total debt. The companys president is concerned about the accuracy of the income statement. Who represents the insured when dealing with insurance companies? Which of the following is NOT an allowable 1035 exchange?
