B. compulsion? b) 10% for early withdrawal C. Application don't pick binding receipt at all on test. \text{Less: Operating expenses}\\ Dividends received by policyholders of a mutual insurer are not taxable. Adverse selection is well controlled. An insured becomes disabled at age 22 and can no longer work. D) Claims result from losses by a peril insured against in an insurance policy. Hospital bills of the key employee (b) Most policies can be renewed without evidence of insurability. Compensating executives 2)can be sold as a rider to a whole-life policy. a) Agent's report 10 year level term Can term insurance be both renewable and convertible? Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. -Staged intervals A. contract of adhesion A contract between insurer and policy holder. C. It's a decreasing term insurance. c) Counselor Liquidity in life insurance refers to availability of cash to the insured through cash values. (c) term insurance Rebating is an unfair trade practice and is regulated by law. B. Twisting \text { Type I } & \$ 30 & \$ 35 & - \\ A. D. Offer Level-increasing face value. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. & &&\textbf{ Quarter } \\ B. (receive dividends & the right to vote). 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. A company doing business in the same state it was incorporated in and owned by the policy holders. c) Low-income individuals and families The 3 categories of private insurers site of incorporation? There is a minimum guaranteed interest rate on all sub-accounts. d) Contingent. (b) Cash value accumulation is slow to moderate. (b) reduced. insured is always the borrower & the beneficiary=lender A) An indeterminate premium reduction policy is a policy in which the premium is guaranteed for an initial period, then the insurer can charge up to a maximum premium charge that is specified in the policy. c) An agent offers tickets to a baseball game as an inducement to buy insurance. b) Universal Life 1)Domestic Insurer Which of the families below is likely to have the least need for a large life insurance policy? Whoso. Permanent Insurance have 3 words in common, what are they? Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? D. Reduction is a method of managing risk. Insurance is considered a transfer of risk. All of the following are common characteristics of this coverage EXCEPT S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. -The insurance dept. Most policies can be renewed for additional periods without evidence of insurability. 2)premium gets lower. 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. B. D) Insurance covers intentional losses as well as unintentional. The money in a savings account Predicted needs of the family after the insured's death Which of the following documents must be provided to the policyowner or applicant during policy replacement? -Not invested in stock market C) An insurance contract must contain a copy of the original application. What must exist at the time of the application? -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. \textbf{Income Statement}\\ a) Types of mutual companies \hline \text { Jul 31 } & 17,000 The premium is level and guaranteed not to increase. What are two reasons that people deposit money in banks? C. Buy-Sell agreements are normally funded with a life insurance policy Waive the premium if the INSURED becomes totally disabled. C. it is often experience-rated, with premrums based on expected losses. What is the term for a cause of loss, such as the theft of a car? C. The policy is an aleatory contract The following are all true regarding risk management, except: A. \\ Which of the following is an example of liquidity in a life insurance contract? 2)when benefits begin These individuals qualify for lower premiums than those in the other categories. d. The total of all cost sheets completed during the month is $628,880.00. After insurer makes an offer, what must the applicant do? B. Nonadmitted All of the following statements about the settlement of a claim are true EXCEPT. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". D. Accident What is the primary source of info for the underwriting department to determine insurability? (b) Cash value accumulation is slow to moderate. Free Chapter 1 - Tests.com b) Copies of illustrations and application 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same B) Passing examination with 75% or higher score. B. 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. Tax-qualified annuities are subject to IRA maximum contribution limits. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. ? a) An agent offers the use of his lake house to person as an inducement to buy. Who is responsible for making sure the application is completed properly and all necessary info is obtained? The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue Round Trees management makes a forecast of the demand by rental class for each night in the future. b. Which of the following statements about universal life insurance is true? -cash value can lose value. Insurance is not designed to cover _____________ losses. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Causes of the 2000s United States housing bubble - Wikipedia Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. C. Risk It is used to pay off the balance on the mortgage. d) 15 years. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. -But pays you interest, 1)Fixed annuity Jul3119,500\begin{aligned} Hazard 3)defined benefit plans a) Aleatory 1) mentally incompetent persons M327. -Can't lose value d) The insurer will sue the insured for committing fraud. If the ultimate consumer is a business that collects and pays to the government VAT on . Only one party is giving a legally enforceable promise- A one-sided contract is what? She has limited income and significant life insurance needs. What are the (5) Factors considered with combination policies Who and What are they? Certificate holders may convert coverage to an individual policy without evidence of insurability. &\text { Cash }\\ considers Lloyds of London an Alien insurer An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? 1. Value-added tax - Wikipedia 5)coverage begins Example: company that is incorporated in NJ and sells in NJ. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball \hline & \text { Jul 31 } & 19,500 e. The total of costs recorded on all sales invoices for the month is$654,052.00. 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. D. Concealment (Medic Information Bureau)? D. Department of Treasury A. 3) Retaining the risk. Why do most states have a waiting period for couples applying for marriage licenses? B. Misrepresentation An underwriter will consider each of the following factors when evaluating a risk, except: A. True or False: Under the Financial Responsibility Law, you are required Tamara purchased a term insurance policy when she had high life insurance needs and limited income. b) A producer who handles insurer funds in a trust capacity. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? b) Index used by stock companies Limited-Pay Life & Single-Premium Policies? -Not a true insurance company 5)Survivorship Life Policy (policy holder pays themselves). The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. -policy holder adheres to it D. Solicit applications on insurer's behalf and is NOT a party to the contract. \end{array} A persons assets & liabilities at their time of death. A) Any distributions from MECs are taxable, including withdrawals and policy loans. b) To deter the policyowner from committing suicide Pro rata liability applies. Estimated direct labor costs for next year are$440,000.00. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. A. -assignor=assignee B. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. Chapter 1- General Insurance Flashcards | Quizlet A. The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. D) Obtaining a bachelor's degree. ~~~\text{Depreciation on factory equipment}&31,000\\ d. falsely believing that a spouse has been 4)Consumer report=credit, -shorter time span for paying premiums As her friend, you have been asked to review the income statement and make necessary corrections. Which of the following is the basis for a claim against an insurance policy? B. (b) II only (Choose from the following options) (d) sandwiched family. B. The death benefit varies according to investment experience. Which of the following is true regarding the beneficiary designation of the former spouse. Last year, the couple got divorced. 2) profits are returned as dividends the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. -also the agent may be required to initial the change, statement of health from insureds personal physician, What are 2 federal laws that protect policy holders & forms that must be completed? -pays an additional death benefit if the insured dies from an accident Which of the following is an example of an unfair claims settlement practice? c. Manufacturing expense accounts and their balances for the month are as follows: DepreciationExpense-FactoryEquipment$5,770.24MiscellaneousExpense-Factory$13,780.48DepreciationExpense-Building2,822.40PayrollTaxesExpense-Factory43,736.00Heat,Light,andPowerExpense9,055.20PropertyTaxExpense-Factory6,088.32InsuranceExpense-Factory1,505.28SuppliesExpense-Factory18,063.36\begin{array}{lrlrr}\text { Depreciation Expense-Factory Equipment } & \$ 5,770.24 & \text { Miscellaneous Expense-Factory } & \$ 13,780.48 \\ \text { Depreciation Expense-Building } & 2,822.40 & \text { Payroll Taxes Expense-Factory } & 43,736.00 \\ \text { Heat, Light, and Power Expense } & 9,055.20 & \text { Property Tax Expense-Factory } & 6,088.32 \\ \text { Insurance Expense-Factory } & 1,505.28 & \text { Supplies Expense-Factory } & 18,063.36\end{array} -age 100. D. Effect of inflation on income over time. The cost of a living rider is calculated by what? the application is used at the primary source of info. ~~~\text{Selling and administrative salaries}&75,000\\ IN WHITE RAIMENT. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. D. Delivery receipt. To sell variable life insurance policies, an agent must receive all of the following EXCEPT ____________ insurer is not a type of insurer. 14,500 \\ A securities license. & \text{ ???? } The 7 paytest is used to determine if a policy is a _______? PracticeTest Flashcards by Gabriel Martinez | Brainscape A debtor has insurable interest in the life of a lender On DUE DATE. What contract characteristic does this describe? Life Insurance Flashcards - Cram.com 1.1K 64K views 1 year ago In this video I show you how to one shot Jul3125,500\begin{aligned} The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. The issuance of a binder is the result of the ___________________ of an offer. b) Policyholder (c) both I and II Whats the "take it or leave it contract"? Rates are considered inadequate when they do not cover projected losses and expenses. D) They must be signed by both the Producer and the applicant. & \text { Depr } & 3,000 \\ b) Cost of living rider. A mutual insurance company does not have what? C. Whole life \text { Type II } & \$ 20 & \$ 30 & \$ 40 d) All of the above. -cash value options 21,000 \\ This is called. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} \hline & \text { Jul 1 } & \begin{array}{r} (Choose from the following options) 4)policy matures at age 100. 4)underwriting is complete Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). 3. 3)low premiums. Candidate List of substances of very high concern for Authorisation Insurance is designed to cover both intentional and unintentional losses. 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. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ A FINRA registration. c) Conditional D. The ratings are available to the public 3)Family Policy(Limited but all fam members paid) Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} b) Unilateral b) Conditional receipt Hammond estimates that it will manufacture 5,000 televisions next year. 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 The shifting of risk of loss to a larger homogeneous group is known as what? 2. Terms that apply to the insurer not the applicant. 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. Acceptance D. The benefit is received tax free 1. B. Beneficiarys age \text{Inventory} & 201 & 505 & 905 & 52 \\ d) Blackout approach. An insurer that was incorporated in a different state that it is doing business in. What are the permanent working capital needs of your company? The face amount decreases as the amount owed on the mortgage decreases. (d) endowment insurance, Rachel needs permanent life insurance. All of the following are required signatures on a life insurance application EXCEPT. D. Financial Experience. Health insurance decreases your healthcare costs. 1)cont. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. What is the primary source of info used to determine insurability by the underwriting department? 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution How has the Aswan High Dam affected the lives of Egyptians? When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. A monthly deduction is made from a policy's cash value for the cost of insurance protection. Why?". a) To limit the insurer's liability after the 2 year waiting period &\begin{array}{r|lr} What else must he include? CashJul1Jul315,500???? If a change in the application is necessary what is required?