Which of the following is a financial rating service? 4)annual, Everytime you have a payment due. &\text { Inventory }\\ Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). IN WHITE RAIMENT. The correct answer is: The premium decreases to zero by the end of the policy period. 4. A surplus lines broker accepts business only from non- resident agents 3)Explain any riders or exclusion (economy). A) loss reserves 2. C. Medical Background B. IRS has no jurisdiction b. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. -assignor=assignee Endowments means policy is what(2) things? Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. A. Executive office A. a) Agent's report What does "liquidity" refer to in a life insurance policy? insurable interest must exist. Weiss and Fitch are two of these services, although there are more. c) 10 years. C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. (b) Prepare a correct income statement for October 2017. Cash values are available in whole life policies. a) More active. C. They can borrow higher amounts off of their policies A mutual insurance company does not have what? 4) 3 components to the premium, The owner and the insured are different people. The designation will be void/. Cash value is invested in the stock market. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 4)Explain the policy and its provisions Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. True or False: Under the Financial Responsibility Law, you are required What happens when a policy is surrendered for its cash value? Estimated direct labor costs for next year are$440,000.00. Beneficiaries are NOT required to sign the application unless they are also the owner. B. &\text { Retained Earnings }\\ The 4 characteristics of a universal life policy are? d) Older. (d) Most policies have a CV that is refunded when coverage ceases. also known as acceptance. Six Reasons the Loss is Excluded - MyNewMarkets.com Retention, Avoidance, and Transfer are all _________________. A Contract that binds only one party to future performance, is a (n): A. What else must he include? They become permanently disabled The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. If company pays dividends, then they are a? -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? B) The plan is funded by permanent insurance only. Compute DVDs net cash provided by (used for) operating activities during July. It requires evidence of insurability for renewal. (Hint: Take a look at the Theory of Reasoned Action.). 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? Costs of training a replacement b) The elderly paperspast.natlib.govt.nz -7 pay test is used to determine If a policy is a MEC. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. 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) Coverage ends but the policy can be reinstated at any time. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. 4. Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. c) Misrepresentation B) They illustrate the nonguaranteed elements of the policy. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. All of the following statements regarding contracts of indemnity are true EXCEPT a. d) Performing reviews of insured's coverage. Which of the following is NOT an example of a business use of Life Insurance? In order for the contract or policy to be valid or legal? Who assumes control over an insurance company's funds and management if it becomes insolvent? ADD( Accidental death and dismemberment??? D) An agent's report and inspection report provides personal information. b) Unilateral How has the Aswan High Dam affected the lives of Egyptians? All of the following are true of negligence, except: - AZanswer What are the 3 characteristics of a Mutual Insurance Company? After insurer makes an offer, what must the applicant do? -age 100. 4)settlement options, 1)stand alone policy Free Standardized Tests Flashcards about Health&Life - StudyStack 3)2 Death benefits-(level/increasing) 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? (b) single-parent family. 2)Variable annuity Copyright 2009-2022 Tests.com LLC - All Rights Reserved. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Life expectancy has increased in the U.S. over the last century. b) Hazard B. Which of the following statements about a life insurance policy is (are) true? A) the agent. II. B) Passing examination with 75% or higher score. 4 All of the following statements about term insurance are true EXCEPT -The insurer would pay the face amount of the policy minus the past due premium. a) Consumer Privacy Act Daycare is considered to be among these expenses. II. As her friend, you have been asked to review the income statement and make necessary corrections. 3. b) The policy will not be affected. -then picks a contract. Which of the following is TRUE regarding assignment rights for . b) Reduced paid-up Now Tamara can afford whole life insurance. b) Policyholder (d) indeterminate-premium whole life. The application is the basic source of information an insurer uses in the risk selection process. Question: 55. Terms that apply to the insurer not the applicant. C) the proposed insured. 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? Legal Purpose Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. There are 2 parties of the contract- what are they? B. ____________ is the transfer of the right of recovery from the insured to the insurance company. A life insurance policy is exchanged for an annuity. Which of the following about the use of ordinary life insurance is true? Term. (a) capital retention approach 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. The correct answer is: Maggie's Piano Studio with 1 employee. Insurance is considered a transfer of risk. 2)standard-average All of the following are business uses of life insurance EXCEPT B. this insurance is often written in connection with automobile loans. -pays an additional death benefit if the insured dies from an accident 3)premium is collected d) Fiscal responsibility. A securities license. Why do most states have a waiting period for couples applying for marriage licenses? 2)quarterly 90-180 days. -The insurance dept. (d) Premiums increase at an increasing rate upon renewal. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} ch 7 Flashcards | Quizlet 3,000, AccountsreceivableJul121,000???? A persons assets & liabilities at their time of death. (a) matured. -cash value options What is a statement in the application guaranteed true in all respects? A life insurance license. Individuals covered under the policy received a certificate of insurance. A. Which of the following documents must be provided to the policyowner or applicant during policy replacement? The remaining amounts should be charged to selling and administrative activities. 1) a policyholder votes on the Board of Directors 21,000 \\ (b) The face amount of the policy is paid if the insured lives to age 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? 1) preferred-low All renewable term policies are accepted without__________ and only with_____ collected. (d) neither I nor II. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? D) They must be signed by both the Producer and the applicant. Rates. a. mentally counting backward from 1,0001,0001,000 Which type of risk involves the possibility of loss or gain? ~~~\text{Selling and administrative salaries}&75,000\\ 1) cash value earns interest 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. Principles of Risk Management and Insurance - Easy Notecards 1) All requirements are met A contract between insurer and policy holder. D. Concealment A whole life insurance policy is exchanged for a term insurance policy. When a policy is contributory how much is paid? A. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. Must have at least 32/40 question correct for positive rating. 1. Misrepresentation, Concealment and Deceit are all examples of what? C) They must contain a warning that actual results may vary. C. Funding business continuation agreements b. 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 total of all requisitions of indirect materials issued during the month is$20,170.00. On DUE DATE. 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. To sell variable life insurance policies, an agent must receive all of the following EXCEPT All of the following are methods of payment? Dividends received by policyholders of a mutual insurer are not taxable. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? Conditional Contract \end{array} \\ 2. The policy is a contract of adhesion. What are (4) ways annuities are classified? a) Types of mutual companies \hline \text { Jul 1 } & \begin{array}{r} \hline & \text { Jul 1 } & \begin{array}{r} Receipt 3)low premiums. There is no limitation on the number of key employee plans in force at any one time. There is a minimum guaranteed interest rate on all sub-accounts. Empire Company is a manufacturer of smart phones. 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. &\begin{array}{lr|rr} 1. D. The face amount remains the same throughout the life of the policy. When a policy is non-contributory how much is paid? a) Year only. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Correct: B. 1) premium schedule differ from whole life B. Non-Participating (stock) Life Insurance Policy. 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. All of the following statements about ordinary life insurance are true EXCEPT. It is a type of tort. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball (c) both I & II (d) neither I nor II. C. The insurer is always required to pay the . 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} 2)the face amount What are the two options in death benefit options? ? 3. b. Height Weight and Health conditions. B. 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? All of the following are personal uses of life insurance EXCEPT, All of the following are true of key person insurance except, D. The plan is funded by permanent insurance only. -paying for certain time and stop. d) Decreases annually. 2)explain any ratings Correct: C. Consideration. \text { Type I } & \$ 30 & \$ 35 & - \\ b) A producer who handles insurer funds in a trust capacity. Foreign. A) Any distributions from MECs are taxable, including withdrawals and policy loans. 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. Who is responsible for making sure the application is completed properly and all necessary info is obtained? What is the primary source of info used to determine insurability by the underwriting department? B. Beneficiary's age A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. Chapter 3 part 1 Flashcards | Quizlet Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. (b) face amount of the policy and the total premiums that have been paid. All of the following statements are true regarding mortgage protection insurance EXCEPT. &\text { Accounts payable }\\ The replacing company notifies the replacement company. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? b) To deter the policyowner from committing suicide 3)semi-annual 2)premium gets lower. don't pick binding receipt at all on test. B) bonds 3. The debtor does not have an insurable interest in the life of the lender. -Prepays portion of face amount if diagnosed with terminal illness. (d) paid-up. All of the following statements about the settlement of a claim are true EXCEPT. \end{array} A debtor has insurable interest in the life of a lender (b) Cash value accumulation is slow to moderate. c) Extended term All of the following statements about the characteristics of Social Security are true EXCEPT A. b. Term life insurance provides pure death protection. 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. D. The policy is a bilateral contract \hline \text { Jul 1 } & 22,000 \\ b) 5 years only. 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. Which of the following is the best reason to purchase life insurance rather than annuities? 3)they provide insurance to members. The primary purpose of buying an annuity is? -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded (c) PV of the family's share of a deceased breadwinner's future earnings. c) Premium accountability. d) The policy can be reinstated by paying back all policy loans and premiums. 2. These individuals qualify for lower premiums than those in the other categories. Insurance is designed to cover both intentional and unintentional losses. Reinsurance has 2 types of policys, what are they? Hammond Corporation manufactures televisions. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. I. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. (c) The number of times the coverage can be renewed is limited. An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past d) Blackout approach. Coverage is available in $50,000 increments up to the maximum of $400,000. \hline && \text { Jul 31 } & 111,000 & \text{ ???? } 2)Decreasing Term &\begin{array}{l|lr} a. Instructions d) An agent misrepresents policy benefits to convince a policyowner to replace policies. This form of life insurance has fixed premiums and the cash value is not guaranteed. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? Insurance is designed to provide protection against which of the following? Insurance transfers risk but it does not__________ risk. Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue 1.1K 64K views 1 year ago In this video I show you how to one shot O c. The policyowner has the option of investing the cash value in several investment accounts. Nature of risk Everything else equal, how would the factor below affect the market value of a stock? Estate conservation a) Material change With a little work, an unused office area could be converted to a rental room. (a) I only (b) II only d. falsely believing that a spouse has been (must exist at the time of application). A whole life insurance policy is exchanged for a Universal life insurance policy. Round Trees management makes a forecast of the demand by rental class for each night in the future. Prior to October 2017, the company had been profitable every month. (a) They increase at an increasing rate. What are the (5) Factors considered with combination policies Who and What are they? a) Premium amounts and surrender values b) Conditional receipt 1) insured gets higher amount -A Mec will receive unfavorable tax treatment $ cant exceed indebtness. A. 1)Level What adds coverage and modifies coverage? Candidate List of substances of very high concern for Authorisation (a) I only (b) II only When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? 2)face amount is set Round Tree has 100 Type I rooms and 120 Type II rooms. What does it mean when a policy is limited pay life? d) Limited pay. cheating. Statements in the application that are guaranteed true but later found to be false may result in what? c) Counselor -policyowners right provision 3)substandard risk. Is claim still paid if there is a misstatement of age or sex? 3) Increasing Term. 4)decrease premium paying period. 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 . Long term- the longer the policythe more spread out the policy premiums are. What will probably happen? Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. \end{aligned} 10 year level term D. Workers compensation. If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would it be considered in New York? Joe, Larry, and Curly own a small business. Yes, all T-mobile insurance plans cover water damage. (a) I only D. Effect of inflation on income over time. An insurance consultant CANNOT be which type of persons? D. Unilateral Contract C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Life insurance proceeds b. A corporation is the owner and beneficiary of the key person life policy. Only the MIB will provide information about an applicant's medical history. The failure to disclose known facts is what? CashJul1Jul315,500???? The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. A key person insurance policy will pay for costs of running the business and replacing the employee. A monthly deduction is made from a policy's cash value for the cost of insurance protection. 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 insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. 4)defined contribution plans. Something of value is a __________________. B. Beneficiarys age _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Term life insurance provides the largest amount of coverage for the lowest amount of premium. b. D. Claim History Example: company that is incorporated in NJ and sells in NJ. Correct: A. B. Nonadmitted a) The policy can be converted to term coverage. \end{array} \\ c) Comparisons with similar policies She meets the definition of total disability under Social Security. & \text{ ???? } 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. (b) level-premium method \textbf{EMPIRE COMPANY}\\ c) The inspection report After Alex has made 20 premium payments, his life insurance policy is considered c. continuous premium whole life After everything is signed & premium is collected What does the agent give to the policy holder? Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. C. Countersign insurance contracts Jul3117,000\begin{aligned} 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. Value-added tax - Wikipedia D. Offer (D The employer is the owner, payor and beneficiary of the policy. \underline{\hspace{40pt}}. 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. We participate at both the national and state levels as a leading advocate in the judicial, legislative, and regulatory environment to ensure that Members' concerns are heard by lawmakers on issues that impact medical professional liability. Estate Creation B. d) 15 years. (3), WHat is the difference between universal and whole life policies? a) To limit the insurer's liability after the 2 year waiting period Most policies can be renewed for additional periods without evidence of insurability. Conviction of a felony involving moral turpitude. 1. 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. Payment of premium (b) current assumption whole life. B. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? Domestic Insurer Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. -Can't lose value &\text { Rental Class }\\ When an agent collects the initial premium from the applicant, the agent should issue the applicant a. All of the following are characteristics of group life insurance EXCEPT. Correct: A. Correct: B. II. Correct: C. Condition contract, enforceable only under certain conditions. Which of the following is the basis for a claim against an insurance policy?