-has cash value invested in the stock market 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. 3,000, AccountsreceivableJul121,000???? A. It does not include breach of contract. How has the Aswan High Dam affected the lives of Egyptians? A key person insurance policy can pay for which of the following? &\text { Rental Class }\\ 6/1 Quiz: Group Life Insurance Flashcards | Quizlet Signed waiver of premium \hline \text { Jul 1 } & 5,500 &&\\ -paying for certain time and stop. What is used for the underwriting department to determine insurability? -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded Flashcards - WA Common Law Practice Exam - FreezingBlue A. Is claim still paid if there is a misstatement of age or sex? b) Promptly forwarding premiums to the insurance company I. B. -birth of child. Only the MIB will provide information about an applicant's medical history. There is no limitation on the number of key employee plans in force at any one time. D) An agent's report and inspection report provides personal information. 3)2 death benefit option The purpose of an estate clearance fund is to pay all of the following EXCEPT. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? D. Effect of inflation on income over time. A ____ contract requires that both parties perform certain duties. 2. b. 2)standard-average insurable interest must exist. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. B. Chapter 3.2 - Subjecto.com All of the following are true of key person insurance EXCEPT -greater potential to grow the cash value but there is no guarantee D. Reduction is a method of managing risk. PracticeTest Flashcards by Gabriel Martinez | Brainscape Beneficiary's age is not a suitability factor. 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. Causes of the 2000s United States housing bubble - Wikipedia Since they may receive a dividend (not guaranteed), such policies are known as participating policies. The parties in the insurance contract consist of whom? M327. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. A corporation is the owner and beneficiary of the key person life policy. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". Receipt \hline \text { Jul 1 } & 22,000 \\ There are 2 parties of the contract- what are they? 3. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} What is the primary source of info for the underwriting department to determine insurability? The application is the basic source of information an insurer uses in the risk selection process. Terms that apply to the insurer not the applicant. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Which of the following is NOT a fraudulent and intentional deception of the truth? DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. The failure to disclose known facts is what? This type of life insurance is called 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. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. B) Passing examination with 75% or higher score. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 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 are the 3 characteristics of a Mutual Insurance Company? All of the following characterize term life insurance, EXCEPT: Select one: a. What is a statement in the application guaranteed true in all respects? D. Funding against general company financial loss A) They must be given to all Life insurance applicants. Which of the following is a financial rating service? L4. Life Insurance Policy Provisions Options and Riders 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. The agent When a policy is non-contributory how much is paid? The County is administered by a five-member Board of Supervisors who are elected for four-year terms D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers -then picks a contract. The applicant accepts the invitation by paying the ___________. Be prepared to justify your answer. InventoryJul1Jul3122,000???? a) Accepted accounting principal. What type of insurer has no capital stock? (b) Most policies can be renewed without evidence of insurability. a. whole life paid at 65 2)premium gets lower. Renew policy holder has an option- THE INSURER DOES NOT. D. Claim History What constitutes the acceptance of an offer? All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. 3)Alien Insurer. (c) Most policies can be converted to a permanent life insurance policy. The issuance of a _________ is the result of the acceptance of an offer. C. Consideration 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. A debtor has an insurable interest in the life of a lender. D) Insurance covers intentional losses as well as unintentional. \hline & \text { Jul 31 } & 19,500 If company pays dividends, then they are a? O b. (b) II only Waive the premium if the INSURED becomes totally disabled. All of the following statements about term insurance are true EXCEPT. A. The corporation also helps detect and prevent insurer impairments. A _______ __ is the additional premium needed to get covered with high or substandard risk. &\text { Cash }\\ C. Tax Status \text{Sales revenue}&&\$780,000\\ \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ and is NOT a party to the contract. Adverse selection is well controlled. D. Concealment Conditional contract means the policy holder does what? All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. \end{array} \\ 3)Increasing term adds face value. If a change in the application is necessary what is required? All of the following are characteristics of group life insurance EXCEPT. An underwriter will consider each of the following factors when evaluating a risk, except: A. Free Standardized Tests Flashcards about Health&Life - StudyStack What are the temporary needs? Represent the insured's interest Which is generally true regarding insureds who have been classified as preferred risks? Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue C. Medical Background Who might receive dividends from a mutual insurer? B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. Originating policy The premium is level and guaranteed not to increase. What adds coverage and modifies coverage? C. The benefit is received as taxable income A life insurance policy is exchanged for an annuity. DONT PICK IT!!!!!! Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. B. Insureds current and future income a) Using arbitration when the insured and insurer cannot reach agreement Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. This form of life insurance has fixed premiums and the cash value is not guaranteed. \hline & \text { Jul 1 } & 55,000 \\ Claim is still paid with an adjustment to the benefits. A contract between insurer and policy holder. \end{array} Costs of training a replacement & \text { Depr } & 3,000 \\ 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. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? With a little work, an unused office area could be converted to a rental room. C. Solicit applications on the insurer's behalf D) Obtaining a bachelor's degree. ~~~\text{Depreciation on factory equipment}&31,000\\ Type I rooms do not have wireless Internet access and are not available for the Business rental class. & \text{ ???? } Liquidity in life insurance refers to availability of cash to the insured through cash values. d) Limited pay. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. What is the purpose of a suicide provision within a life insurance policy? (must exist at the time of application). ~~~\text{Depreciation on sales equipment}&45,000\\ ~~~\text{Indirect labor cost}&28,000\\ (a) They increase at an increasing rate. Health insurance decreases your healthcare costs. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. C. Risk B. Beneficiarys age Accidental Death Benefit b) An agent offers to share his commission with a policyholder. 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. What are some of the questions asked on the application to determine the premium and risk classification of the insured? c) Counselor If there Is a risk of financial loss then there is a what? Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. d. Annual income 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. -marriage $ cant exceed indebtness. There is no limitation on the number of key employee plans in force at any one time B. C. Conditional contract b) Coverage ends and the policy cannot be reinstated. Which of the following types of insurance policies would perform the function of cash accumulation? Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. 2)Family Income(decreasing term-policy) What kind of penalty would the IRA owner pay? d) All of the above. An agent and an applicant for a life insurance policy fill out and sign the application. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Who is not a party to the contract and receives the benefits when the insured dies? (c) human life value method Payor benefit/Clause is always a _________. Term. The 3 categories of private insurers site of incorporation? 1) Conditional Reciept C. Medical Background D) adding cost of living coverage. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Quarterly working capital levels for your firm for the next year are included in the following table. Accelerated Living Benefit/Accelerated Death Benefit? C. Hazards (3), WHat is the difference between universal and whole life policies? I. 4. (Choose from the following options) D. Premiums paid are deductible as a business expense. Which method makes the most sense for her to employ? An insured is driving her automobile and strikes a large pothole that . D. Breach of warranty All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. An insured becomes disabled at age 22 and can no longer work. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? 3)Consideration Which type of life insurance makes sense for someone in this situation? Which of the following statements about universal life insurance is true? ____________ insurer is not a type of insurer. Is interest always gained in Universal Life Policy? 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. 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. ch 7 Flashcards | Quizlet An insurance consultant CANNOT be which type of persons? Which of the following is the basic source of information used by the company in the risk selection process? 1. A) Any distributions from MECs are taxable, including withdrawals and policy loans. In a car accident dealing with ADB who covers the passenger? B. 3)increase the length of coverage Correct: A.A peril. C. The insurer is always required to pay the . All of the following information about a customer must be used in determining annuity suitability EXCEPT An insurance company that was incorporated in a different state it is doing business in and pays dividends to its policyholders is known as a _________. Round Tree has 100 Type I rooms and 120 Type II rooms. The total of all requisitions of indirect materials issued during the month is$20,170.00. c) Extended term Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 1 / 25. Prepare a pie chart of on-time delivery performance for last month. In this case, the applicant will most likely need to fill out a Statement of Good Health. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? (economy). The policy is a contract of adhesion. \\ A. (a) I only Which term describes the probability of a loss? Increasing term \end{array} C. A husband or wife has an insurable interest in their spouse - 20 pay life-premiums paid for 20 years and paid up at 65 Tom and Nancy Boyle provide financial support for their two children. b. If applicant is not the insured- then insureds signature is required D. Viatical settlement. Liquidity in life insurance refers to availability of cash to the insured. ______________ is defined as restoring the insured to the same financial condition as before the loss. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. d) Fiscal responsibility. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. Jul313,000\begin{aligned} To sell variable life insurance policies, an agent must receive all of the following EXCEPT a) Agent's report -Staged intervals When an applicant pays the initial premium the agent will give them a what? She has limited income and significant life insurance needs. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. b) Policyholder Under Section I, homeowners insurance must include Are insurance company underwriters allowed to discriminate? C. State Education Waiver 10 year level term Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. A. contract of adhesion -assignor=assignee D. An individual has an insurable interest in her or her own life. -Prepays portion of face amount if diagnosed with terminal illness. C. Countersign insurance contracts The cash value available to the policyowner \hline && \text { Jul 1 } & 65,000 \\ Their premiums are lower CPI (consumer price index) without evidence. Insurance is designed to cover both intentional and unintentional losses. 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? 1. (4), 1)monthly What are (4) characteristics of permanent insurance? Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds What is the term for a cause of loss, such as the theft of a car? b) The elderly Explain your answer. D. Delivery receipt. All of the following are true of insurance except: a) protects against uncertainty b)means sharing of loss c)eliminates risk d)transfers risk Answer: Eliminates risk Question: Which of the following is NOT true about insurance? Now Tamara can afford whole life insurance. Final practice questions Flashcards | Chegg.com A. B) A fiduciary is a producer who handles insurer funds in a trust capacity. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Question: 55. Conditional Contract 2)explain any ratings All of the following statements are TRUE concerning Debtor Groups EXCEPT C. Unilateral contract If the insured commits suicide after the 2 year period, the policy will pay the death proceeds to the designated beneficiary the same as if the insured had died of natural causes. ~~~\text{Selling and administrative salaries}&75,000\\ C. it is often experience-rated, with premrums based on expected losses. 1) preferred risk Hammond estimates that it will manufacture 5,000 televisions next year. What contract characteristic does this describe? If the corporation collects the policy benefit, then Life Insurance Flashcards - Cram.com Solved 55. All of the following statements regarding | Chegg.com An insurer that is incorporated in the same state that they are doing business in is a_____________.? Get more out of your subscription* Access to over 100 million course-specific study resources B. Is There An Objective Morality? IAI TV Waiver of Premium- What happens to the insurer? Appoint a solicitor as his or her representative Premiums are not tax deductible as a business expense Foreign. Our records show that more than one device is associated with this If you don't have health insurance, you pay all costs for healthcare and medical emergencies. d) Blackout approach. CashJul1Jul315,500???? Who would be eligible to obtain SGLI? d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. 4)explain policy & provisions \end{array} 6)free-look period-$ back guaranteed. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? II. 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? (a) capital retention approach If someone dies within the Grace period, what happens? A surplus lines broker accepts business only from non- resident agents Something of value is a __________________. The applicant has been shown to be a poor personal credit risk. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). (c) expired. 4)Explain the policy and its provisions * 50% is paid Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? B. b) State attorney general d) Graded Premium. D. Speculative Risk 3)Family Policy(Limited but all fam members paid) 3)mortality charge. \textbf{For the Month Ended October 31, 2017}\\ c) Helping insureds to file claims D. group credit insurance must have a suicide clause . C. Payment of premium Beneficiary's age A false statement in the application for insurance is_____________. Agents and producers must place business through an insurer with the lowest rated D. Premiums are tax deductible as a business expense, B. 4)settlement options, 1)stand alone policy &\begin{array}{lr|lr} (a) present value of future benefits and the present value of future premiums. Modification to a policy is a _______________? A Contract that binds only one party to future performance, is a (n): A. Solved All of the following statements about variable life - Chegg \hline \text { Jul 31 } & 3,000 d. falsely believing that a spouse has been d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. Most agents try to collect the initial premium for submission with the application. (a) blended family. 2)can be sold as a rider to a whole-life policy. -policy holder adheres to it Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. database of previously life and health insurance applications. 4)annual, Everytime you have a payment due. c) Coverage ends but the policy can be reinstated at any time. 4. 4) Joint-Life policy(business part) Insurance policy of 2 or more 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) Fluctuates. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} also known as acceptance. 1) preferred-low Occupation 2) premiums do not change All of the following are true regarding life insurance illustrations EXCEPT. Last year, the couple got divorced. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. Term life insurance provides the largest amount of coverage for the lowest amount of premium. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. 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. A policy that does not pay dividends to policyowners is a Height Weight and Health conditions. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time.