3)Increasing term adds face value. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Round Tree has 100 Type I rooms and 120 Type II rooms. b) Human life value approach Which of the following is true regarding the beneficiary designation of the former spouse. *The insured is diagnosed with terminal & chronicle illness What is a statement in the application guaranteed true in all respects? True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles A. D. Delivery receipt. What is the primary source of info used to determine insurability by the underwriting department? Concerning insurance, the definition of a fiduciary is What contract characteristic does this describe? An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. B. a) Year only. Statement of good health Estate conservation The 4 characteristics of a universal life policy are? 90-180 days. Benefits received are considered income taxable -receiving dividends(when declared) 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? 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. Domestic Insurer Tom and Nancy Boyle provide financial support for their two children. An__________ represents the insurer. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. 1. What are the two options in death benefit options? Cause of potential loss to property such as fire, windstorm, hail, flood, etc. Correct: A.A peril. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. good health A monthly deduction is made from a policy's cash value for the cost of insurance protection. don't pick binding receipt at all on test. a) The policyholders or stockowners of the company 3. Reinsurance has 2 types of policys, what are they? 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. 2)Family Income(decreasing term-policy) Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Cash value is the same as ___________ when the policy matures. 3)premium is collected To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. C) Completing pre-licensing training. Alex, age 26, purchased a 20- payment whole life insurance policy. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. Nonparticipating policy. What is the term for a cause of loss, such as the theft of a car? What adds coverage and modifies coverage? The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. and what two kinds? 4)policy matures at age 100. Which of the following is NOT an example of a business use of Life Insurance? Coverage is available in $50,000 increments up to the maximum of $400,000. B) The plan is funded by permanent insurance only. B. All of the following statements about term insurance are trueEXCEPTa. Which of the following is TRUE regarding assignment rights for . ____________ insurer is not a type of insurer. An insured becomes disabled at age 22 and can no longer work. -assignor=assignee S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. The agent B. Marital Status Cash values can be borrowed at any time 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? 3)riders & exclusions A key person insurance policy can pay for which of the following? An insurer that was incorporated in a different state that it is doing business in. Foreign. How does having children affect the decisions that couples must make when considering a divorce? The County is administered by a five-member Board of Supervisors who are elected for four-year terms a) A retail clerk. Estate Creation B. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. B. \hline 2)the face amount Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? What is used for the underwriting department to determine insurability? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . B) They illustrate the nonguaranteed elements of the policy. The remaining amounts should be charged to selling and administrative activities. Quarterly working capital levels for your firm for the next year are included in the following table. Which is generally true regarding insureds who have been classified as preferred risks? C. Unilateral contract \end{aligned} d) Fiscal responsibility. All of the following statements concerning coinsurance are true, EXCEPT . D. The face amount remains the same throughout the life of the policy. Correct: B. cash value increases while face value remains the same. 2) premiums do not change \hline \text { Jul 1 } & 5,500 &&\\ -marriage Which of the following statements concerning buy-sell agreements is true? Must have at least 32/40 question correct for positive rating. 1. \text{ ???? } C) They must contain a warning that actual results may vary. Warranty When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. M327. In a car accident dealing with ADB who covers the passenger? Under Section I, homeowners insurance must include The policy is a contract of adhesion Hazard B. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. The following are all true regarding risk management, except: A. If the corporation collects the policy benefit, then b) Universal Life Which of the following is usually true of a participating life insurance policy? What are (4) ways annuities are classified? d) Accumulations are tax deferred. a) Juvenile Life Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. d) Living need rider. 3) policy builds cash-value -insured can stop paying premiums at certain age or after a period of time -Take it or leave it contract C. They can borrow higher amounts off of their policies D. The benefit is received tax free. a) Remains level. B. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. c. C. Premiums are determined by age sex and occupation of each individuals certificate holder. Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. (b) Face amount decreases during the policy period, but premiums remain level. c) Smaller. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ ________________ are the person who receives benefits payable upon death. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. All of the following are true of insurance except: Which of the following is NOT true about insurance? All of the following statements about the characteristics of Social Security are true EXCEPT A. CashJul1Jul315,500???? Being young and healthy means you can skip out on health insurance. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. Final practice questions Flashcards | Chegg.com a) The policy can be converted to term coverage. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. A persons assets & liabilities at their time of death. An annuity whose based on the stock market index? 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? A mutual insurer has no stock, and is owned by the policyholders. D. Workers compensation. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball All of the following statements are true of liability insurance, EXCEPT After insurer makes an offer, what must the applicant do? \text { Type II } & \$ 20 & \$ 30 & \$ 40 An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. A debtor has an insurable interest in the life of a lender. Correct: B. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. c. thoughts of harming a neighbor Which of the families below is likely to have the least need for a large life insurance policy? 3)Consideration 2) Transferring the risk 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 -it pays the double indemnity, 1)accident occurs, person must die within 90 days EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} A debtor has insurable interest in the life of a lender \text{Inventory} & 201 & 505 & 905 & 52 \\ D. Unilateral Contract (d) neither I nor II. 2)no cash-value (a) I only The benefit is subject to the exclusionary rule -If the insured dies, the policy payed out the PRINCIPAL SUM C. Whole life One sided contract is a ______________ contract. If the insurance carried is less than required, the insurance may not cover the whole loss. (d) Most policies have a CV that is refunded when coverage ceases. A. signed waiver of premium \end{aligned} C. Countersign insurance contracts Jul3125,500\begin{aligned} Upon policy delivery, the producer may be required to obtain any of the following EXCEPT O b. 1)increase cash value True or False: Under the Financial Responsibility Law, you are required 3,000, AccountsreceivableJul121,000???? All The statements made on the application are called ______? Chapter 11 - Life Insurance. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. (a) I only (b) II only The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. Surplus lines broker deals with admitted carriers only An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. (b) II only Principles of Risk Management and Insurance - Easy Notecards The policy's cash value grows as the investments grow. 2)FCRA(fair credit reporting act) checks MIB report. B) the applicant. Which of the following is the best reason to purchase life insurance rather than annuities? Prepare the following details: Mobile number, serial number, or IMEI. When will coverage begin? Whats the "take it or leave it contract"? Which method makes the most sense for her to employ? B. 1)premium payment What are two reasons that people deposit money in banks? Compensating executives b. Now Tamara can afford whole life insurance. Is There An Objective Morality? IAI TV If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. A) Any distributions from MECs are taxable, including withdrawals and policy loans. 3) Ordinary. a) Accumulated at interest 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? C. Hazards b) Reduced paid-up b. Correct: B. D. Aleatory contract 3)Rider expires 60,65,75. b) The elderly An insured owns a life insurance policy. Group life insurance is most often issued as guaranteed annual renewable term. Which of the following is a physical hazard? What type of interest does universal life have? \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 3)substandard risk. d) Older. 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. Which of the following about the use of ordinary life insurance is true? 1 / 25. Correct: C. Concealment, A. See Answer. What constitutes the acceptance of an offer? What insurance concept is associated with the names Weiss and Fitch? d) All of the above. (a) Evidence of insurability is not required to renew the coverage. Be prepared to justify your answer. a) Material change 3) Retaining the risk. The employer is the owner . b. A ____ contract requires that both parties perform certain duties. a) Small employers Their premiums are lower Tax-qualified annuities are subject to IRA maximum contribution limits. also known as acceptance. exclusions: when the accident occurs within an illness,disease, or mental infirmity. 3)Minors. 4)settlement options, 1)stand alone policy 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same ~~~\text{Depreciation on factory equipment}&31,000\\ Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. O d. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. 1.1K 64K views 1 year ago In this video I show you how to one shot Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? All of the following are methods of payment? 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) Counselor