An__________ represents the insurer. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. 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 As her friend, you have been asked to review the income statement and make necessary corrections. What contract characteristic does this describe? The designation will be void/. B. After examining other manufacturing cost data, you have acquired additional information as follows. Originating policy Free Standardized Tests Flashcards about Health&Life - StudyStack The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? a. All of the following statements about term insurance are true EXCEPT. \hline \text { Jul 31 } & 25,500 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. B. Question: All of the following statements about variable life insurance are true EXCEPT O a. 2)attorneys b) Outline of coverage Which of the following is usually true of a participating life insurance policy? B) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. A persons assets & liabilities at their time of death. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. C. Buy-Sell agreements are normally funded with a life insurance policy Represent the insured's interest D. Funding against general company financial loss C. Application a) Lump-sum approach Only one party is giving a legally enforceable promise- A one-sided contract is what? 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? L4. Life Insurance Policy Provisions Options and Riders Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. C. Independent rating services evaluate and rate the financial ability of insurance companies b) Increasing Premium 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. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. D. Department of Treasury A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? To sell variable insurance what must you have? 3)substandard risk. The face amount decreases as the amount owed on the mortgage decreases. -receiving dividends(when declared) -below market interest rates on borrowing D) An agent's report and inspection report provides personal information. Does T-Mobile Insurance Cover Water Damage? b) 10% for early withdrawal Payor benefit/Clause is always a _________. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". &\text { Retained Earnings }\\ B. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. a) Accumulated at interest The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Contract or form of ownership is a ______________? Medical exams provide information on current health. Cash values can be borrowed at any time The policy is a contract of adhesion Statement of good health 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 . An Applicant inaccurately representing information on the application is guilty of: A. -ages 25,28,34,37,40 An insured is driving her automobile and strikes a large pothole that . For this amount of production, total factory overhead is estimated to be $396,000.00. 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} The Waiver of Cost of Insurance rider is found in what type of insurance? Who represents the insured when dealing with insurance companies? -Take it or leave it contract 2)quarterly c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. b) Policyholder D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. -provides income for retirement D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. There are 2 parties of the contract- what are they? Group life insurance is most often issued as guaranteed annual renewable term. All The statements made on the application are called ______? Candidate List of substances of very high concern for Authorisation Weiss and Fitch are two of these services, although there are more. Their premiums are lower 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. c) The policy will be voided. 3)according to the source of annuity income B. -assignor=assignee -They provide coverage for risks that other insurers normally would not provide. A policy summary usually includes all the listed information, and must be delivered along with a new policy. B) The plan is funded by permanent insurance only. C) the proposed insured. 3. a) Premium amounts and surrender values Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Tom and Nancy Boyle provide financial support for their two children. D. Agents report. He would also like to invest in a mutual fund. ______________ is defined as restoring the insured to the same financial condition as before the loss. Any gain in the policy's cash value is . Accelerated Living Benefit/Accelerated Death Benefit? All of the following statements are true regarding mortgage protection insurance EXCEPT. Which of the following is a financial rating service? 3)Minors. Limited-Pay Life & Single-Premium Policies? (b) They increase at a decreasing rate. -insured can stop paying premiums at certain age or after a period of time (economy). D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers d. The total of all cost sheets completed during the month is $628,880.00. See Answer. d) Tax-deductible. Tax-qualified annuities are subject to IRA maximum contribution limits. \end{array} \\ What are the 3 characteristics of a Mutual Insurance Company? \hline \text { Jul 1 } & 22,000 \\ 2)face amount is set A. a) The policy can be converted to term coverage. Insurers use this law in order to predict certain types of losses and set appropriate premiums. C. Insured's annual expenses ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Principles of Risk Management and Insurance - Easy Notecards Concerning insurance, the definition of a fiduciary is 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. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. All of the following would be considered to be rebating EXCEPT Compute DVDs net cash provided by (used for) operating activities during July. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. 1)Domestic Insurer Which of the following documents must be provided to the policyowner or applicant during policy replacement? All of the following characterize term life insurance, EXCEPT: Select one: a. Insurance transfers risk but it does not__________ risk. 2. (d) indeterminate-premium whole life. The cost of insurance protection is referred to as what? 1) preferred risk d) The Medical Information Bureau. b) Reduced paid-up Life insurance prodceeds (c) The number of times the coverage can be renewed is limited. Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". 2) profits are returned as dividends ? \end{array} c) Disclosure rule D. Concealment &\begin{array}{lccc} If a change in the application is necessary what is required? b) Coverage ends and the policy cannot be reinstated. 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? Jul3119,500\begin{aligned} ch 7 Flashcards | Quizlet c. continuous premium whole life b) State attorney general Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. \hline \text { Jul 31 } & 3,000 1)Level All of the following are characteristics of group life insurance EXCEPT. A) loss reserves 2. a) Agent's report B. Our records show that more than one device is associated with this Predicted needs of the family after the insured's death are used in the needs approach. 2) Transferring the risk Where does group-life insurance come from? Since they may receive a dividend (not guaranteed), such policies are known as participating policies. b. it frequently includes coverage for losses due to casualty and theft. e. The total of costs recorded on all sales invoices for the month is$654,052.00. D. The face amount remains the same throughout the life of the policy. c. Premiums may be raised at renewal d. Group term insurance may cover the . What is an exchange of a whole entire life policy for another? Can a misrepresentation render the contract void if the misrepresentation is material to the risk? 4)explain policy & provisions C) They must contain a warning that actual results may vary. Newborns after how many days become covered in a child rider? 1. 2)collateral assignment-some or only one right assigned. -Not a true insurance company Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. 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 How much life insurance should Sam advise . C. it is often experience-rated, with premrums based on expected losses. 4)annual, Everytime you have a payment due. Economics questions and answers. b) Human life value approach When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health C. A surplus lines broker accepts business only from non- resident agents c) Variable Premium d) Policy dividends. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. D) adding cost of living coverage. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. \textbf{Income Statement}\\ Correct: C. Concealment, A. Coverage is available in $50,000 increments up to the maximum of $400,000. What type of insurer has no capital stock? Prepare a pie chart of on-time delivery performance for last month. C. Risk Executive office Be prepared to justify your answer. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded B. \end{array} b) Universal Life (a) limited-payment whole life insurance & &&\textbf{ Quarter } \\ (c) Most policies can be converted to a permanent life insurance policy. Causes of the 2000s United States housing bubble - Wikipedia Who is not a party to the contract and receives the benefits when the insured dies? All of the following statements regarding contracts of indemnity are true EXCEPT a. Certificate holders may convert coverage to an individual policy without evidence of insurability. 2)Straight Life Flashcards - WA Life Law Practice Exam - FreezingBlue \end{array} \\ A) Any distributions from MECs are taxable, including withdrawals and policy loans. If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? Involuntary Risk A person cannot buy insurance unless that person is in a position to suffer a financial loss. Insurance is an important tool to manage risks, but often unavailable to poorer households. B. this insurance is often written in connection with automobile loans. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. The minimum FREE LOOK period is how many days? 2)Decreasing Term 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 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. Correct: C. Unilateral contract. When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? 1) cash value earns interest If you don't have health insurance, you pay all costs for healthcare and medical emergencies. 3)increase the length of coverage In a car accident dealing with ADB who covers the passenger? The Boyle family can be described as a C. Loss of personal income Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. 1)cont. d. It does not require a duty to be owed. Life Insurance Basics Flashcards | Quizlet &\text { Rental Class }\\ \underline{\hspace{40pt}}. (3), 1)bank trust officer By William Lb Qtjetjx, Author of . On DUE DATE. The policy does not go into effect until the premium has been collected. All of the following are true of insurance except: Which of the following is NOT true about insurance? D. Reduction is a method of managing risk. 3) type of plan they applied for. cash value increases while face value remains the same. c) Fixed premium All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. I. a) Offering additional coverage to clients \end{array} (d) endowment insurance, Rachel needs permanent life insurance. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. d) All of the above. 2) premiums do not change 2)standard-average EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ b. persistent fear of germs Appoint a solicitor as his or her representative C. Domestic Signed waiver of premium A mutual insurance company is owned by who? The concept that the insured should not profit from an insurance transaction is called what? According to the entire contract provision, what document must be made part of the insurance policy? &\begin{array}{cr|} b) Index used by stock companies A Contract that binds only one party to future performance, is a (n): A. a) Executive offer of the replacing company B. Avoidance (b) Prepare a correct income statement for October 2017. (c) both I & II (d) neither I nor II. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. D. Gender. Investors become more risk averse. Flashcards - PSI online exam Life Insurance - FreezingBlue Explain your answer. ~~~\text{Direct labor cost}&190,000\\ Premiums are not tax deductible as a business expense Which of the following is the basic source of information used by the company in the risk selection process? Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} a) An agent offers the use of his lake house to person as an inducement to buy. Whole life policy. 4. The shifting of risk of loss to a larger homogeneous group is known as what? -A Mec will receive unfavorable tax treatment Which of the following best describes a surplus lines broker? ($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?" Exclusion Categories -But pays you interest, 1)Fixed annuity The insured agrees to maintain insurance equal to some specified percentage of the value of the property. The applicant accepts the invitation by paying the ___________. The __________ branch of the state government influences public policy regarding insurance laws. Jul3125,500\begin{aligned} C. Solicit applications on the insurer's behalf Past-due interest on a policy loan is added to the total debt. What happens when there is a Misstatement of age or sex? 3. 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. Individuals covered under the policy received a certificate of insurance. A. Which of the following is NOT an example of a business use of Life Insurance? When a policy is contributory how much is paid? 2) standard risk 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. D. Effect of inflation on income over time. Waive the premium if the INSURED becomes totally disabled. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. B. The correct answer is: Premiums are typically paid by the lender. See Page 1. Which of the following types of insurance policies would perform the function of cash accumulation? b. \end{array} (b) The face amount of the policy is paid if the insured lives to age 65. One sided contract is a ______________ contract. &\begin{array}{lr|lr} A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. 2)Explain and collect any ratings 1 / 25. (d) sandwiched family. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. The remaining amounts should be charged to selling and administrative activities. O d. d) Paid-up option. Agents and producers must place business through an insurer with the lowest rated D. Premiums paid are deductible as a business expense. The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as An individual applies for a life policy. (Hint: Take a look at the Theory of Reasoned Action.). 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$4,000 over the next 5 years. b. Correct: D. Concealment. (a) blended family. D) They must be signed by both the Producer and the applicant. Which of the following about yearly renewable term insurance is true? "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. Costs of training a replacement (c) variable life insurance. Correct: B. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ still matures at age 100, -premium is paid off at one time A. D. Unilateral Contract InventoryJul1Jul3122,000???? cheating. 1. Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. Level-increasing face value. Term. good health may not be altered by an agent and must clearly state that it is not part of the contract. II. It is used to pay off the balance on the mortgage. C. The death benefit paid to the beneficiary 6)free-look period-$ back guaranteed. &\text { Accounts payable }\\ 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. A. contract of adhesion Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date 2)Variable annuity b) 5 years only. Life expectancy has increased in the U.S. over the last century. All renewable term policies are accepted without__________ and only with_____ collected. 4)Explain the policy and its provisions database of previously life and health insurance applications. \hline & \text { Jul 31 } & 58,000 Beneficiary's age B) bonds 3. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. What (5) Factors for GIO & GIB. whose covered? The benefit is subject to the exclusionary rule 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? -the insurer sets the terms of the contract and the applicant must adhere to them. The parties in the insurance contract consist of whom? d) Living need rider. 2)Legal Purpose Term life insurance provides pure death protection. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. The insurer issues the policy and learns of his history one year later. (b) II only It has cash value that is invested into the stock market through mutual funds/securities. Free Chapter 1 - Tests.com -then picks a contract. d) Decreases annually. Pro rata liability applies. The 3 categories of private insurers site of incorporation? 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? The following are all true regarding risk management, except: A. Correct: B. 10 year level term In this case, the applicant will most likely need to fill out a Statement of Good Health. 1) coverage is permanent Solved All of the following statements about professional - Chegg All of the following statements about the settlement of a claim are true EXCEPT. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. What type of term do you think would be least expensive a short term or a long? A. Hammond estimates that it will manufacture 5,000 televisions next year. a) Universal life What are the (5) Factors considered with combination policies Who and What are they? A policy that does not pay dividends to policyowners is a 3)Consideration B. Marital Status C. Whole life Whoso. Empire Company is a manufacturer of smart phones. A. Foregin 1)Statement of continued good health c) 15% for early withdrawal Round Tree has 100 Type I rooms and 120 Type II rooms. D) the minor in a juvenile policy. After insurer makes an offer, what must the applicant do? -Not invested in stock market When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. ch2 Flashcards | Quizlet Who might receive dividends from a mutual insurer? 3)premium is collected An underwriter will consider each of the following factors when evaluating a risk, except: A. Beneficiary's age is not a suitability factor. Group Life Insurance Flashcards | Chegg.com a) Tax-qualified B. -Prepays portion of face amount if diagnosed with terminal illness. Effects of climate change - Wikipedia -cash value can lose value. Whats the "take it or leave it contract"? B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. b) Copies of illustrations and application The money in a savings account A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. c. thoughts of harming a neighbor ___________ is the persons whose death triggers payment. C. Buy-Sell agreements are normally funded with a life insurance policy Predicted needs of the family after the insured's death 3)certified public accountants, Is insurance that is provided by the Federal or State government If the ultimate consumer is a business that collects and pays to the government VAT on . A. B) Underwriters. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? Which of the following is true regarding the beneficiary designation of the former spouse. DONT PICK IT!!!!!! What are the permanent working capital needs of your company? [Solved] All of the following are true of insurance EXCEPT It transfers (a) matured. The correct answer is: The premium decreases to zero by the end of the policy period.
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