-A Mec will receive unfavorable tax treatment
A. Who assumes control over an insurance company's funds and management if it becomes insolvent? Is claim still paid if there is a misstatement of age or sex? The face amount decreases as the amount owed on the mortgage decreases. 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". Newborns after how many days become covered in a child rider? Who might receive dividends from a mutual insurer? The insurer that is transferring the risk to another company is called the ____________ __________. a) The policyholders or stockowners of the company Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . d) Fiscal responsibility. (Choose from the following options) 3)Rider expires 60,65,75. -Staged intervals
There is no limitation on the number of key employee plans in force at any one time. 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. 1)tax qualified plans
c. Payor benefit/Clause is always a _________. Pertaining to insurance, what is the definition of a fiduciary responsibility? Reinsurance has 2 types of policys, what are they? Represent the insured's interest An insured is driving her automobile and strikes a large pothole that . Liquidity in life insurance refers to availability of cash to the insured through cash values. B. Misrepresentation B. Participating policy. B. A policy summary O d. The insurance provides protection for a specified period of time. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. Correct: A.A peril. What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurable? B) The plan is funded by permanent insurance only. 2. \hline \text { Jul 1 } & 5,500 &&\\ 1) coverage is permanent
M327. In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). Terms that apply to the insurer not the applicant. 3) Ordinary. C. Funding business continuation agreements Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer
B. -tax free accumulation of borrowing. Term-Life policy has what 3 characteristics? -Voting. - 20 pay life-premiums paid for 20 years and paid up at 65
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. C. Loss of personal income Which of the families below is likely to have the least need for a large life insurance policy? d) 15 years. All of the following characterize term life insurance, EXCEPT: Select one: a. *Both not taxable. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. The cash value of availability to the policyowner _________ is a determination that a statement made as a warranty, or true. After Alex has made 20 premium payments, his life insurance policy is considered Funding against financial loss caused by the death of a key employee 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. a) A medical examination b) Copies of illustrations and application 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. D. Funding against general company financial loss - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. A. -ages 25,28,34,37,40
3)Explain any riders or exclusion
All of the following are required signatures on a life insurance application EXCEPT. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} The following information is taken from the records of Hammond on November 30 of the current year. (Choose from the following options) What are the (5) Factors considered with combination policies Who and What are they? Agents and producers must place business through an insurer with the lowest rated A. c) Term life Misrepresentation, Concealment and Deceit are all examples of what? 4. The 3 categories of private insurers site of incorporation? 1)Whole Life
Which of the following is the basis for a claim against an insurance policy? When an agent collects the initial premium from the applicant, the agent should issue the applicant a. a. \end{array} Which of the following is the basic source of information used by the company in the risk selection process? \hline (\$ 000) & 1 & 2 & 3 & 4 \\ 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? D. Concealment 4)explain policy & provisions
2)the face amount
the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. 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. C. Medical Background &\begin{array}{l|lr} An insured becomes disabled at age 22 and can no longer work. A. Hospital bills of the key employee The __________ branch of the state government influences public policy regarding insurance laws. 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? 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. Annually renewable term policies provide a level death benefit for a premium that -If the insured dies, the policy payed out the PRINCIPAL SUM
All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. -Prepays portion of face amount if diagnosed with terminal illness. A mutual insurance company does not have what? A policy that does not pay dividends to policyowners is a The primary purpose of buying an annuity is? D) Claims result from losses by a peril insured against in an insurance policy. \hline \text { Jul 31 } & 17,000
Principles of Risk Management and Insurance - Easy Notecards As her friend, you have been asked to review the income statement and make necessary corrections. Which type of risk involves the possibility of loss or gain? 3) Retaining the risk. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. What is the difference between renewable policy holder & Insurer? (c) variable life insurance. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds?
Solved All of the following statements about professional - Chegg c. Using the payback period, which project should Bill choose? c) Helping insureds to file claims If the corporation collects the policy benefit, then 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest.
Flashcards - PSI online exam Life Insurance - FreezingBlue 3)MIB=records of all previous insurances they had. 3)riders & exclusions
Long term- the longer the policythe more spread out the policy premiums are. 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. Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. &\begin{array}{lr|lr} When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? b) 5 years only. What are some of the questions asked on the application to determine the premium and risk classification of the insured? & \text{ ???? } Any gain in the policy's cash value is . Prior to October 2017, the company had been profitable every month. What insurance concept is associated with the names Weiss and Fitch? It has cash value that is invested into the stock market through mutual funds/securities. 3,000, AccountsreceivableJul121,000???? good health
All of the following statements regarding contracts of indemnity are true EXCEPT a. RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40.
PracticeTest Flashcards by Gabriel Martinez | Brainscape Which of the following statements about endowment policies is true? Limited-Pay Life & Single-Premium Policies? Suitability b) Coverage ends and the policy cannot be reinstated. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. C) the proposed insured. A __________ represents the insured. a) The policy can be converted to term coverage. D. Viatical settlement. A life insurance policy is exchanged for an annuity. The policy does not go into effect until the premium has been collected. 2)attorneys
Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. If company pays dividends, then they are a? Which of the following types of insurance policies would perform the function of cash accumulation? -pay for certain time and stop
There are 2 parties of the contract- what are they? &\begin{array}{cr|} Exclusion Categories 1. 4. -the premiums are paid for a limited time only. still matures at age 100, -premium is paid off at one time
A _______ __ is the additional premium needed to get covered with high or substandard risk. (a) I only (b) II only Alex, age 26, purchased a 20- payment whole life insurance policy. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ C. The insurer is always required to pay the . What kind of penalty would the IRA owner pay? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. 1)premium payment
D. Aleatory contract \hline & \text { Jul 1 } & \begin{array}{r} C. Countersign insurance contracts D. Accident (c) term insurance (6). \end{array} c) Copy of the original application The companys president is concerned about the accuracy of the income statement.
Chapter 3.2 - Subjecto.com Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? (c) PV of the family's share of a deceased breadwinner's future earnings.
Flashcards - WA Common Law Practice Exam - FreezingBlue c) 10 years. \text { Type I } & \$ 30 & \$ 35 & - \\ 3. b. -birth of child.
Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue 3)according to the source of annuity income
c) Whole Life A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers The failure to disclose known facts is what? II. (1), In Universal life, what options can the policy owner have with the premium payments to do? d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. D. Premiums are tax deductible as a business expense, B. c) Variable Premium Which of the following statements is NOT true concering insurable interest as it applies to life insurance? True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. Term life insurance provides pure death protection. 1) preferred-low
Term life insurance provides the largest amount of coverage for the lowest amount of premium. What happens when a policy is surrendered for its cash value? The insurer issues the policy and learns of his history one year later. Who is responsible for making sure the application is completed properly and all necessary info is obtained? -assignor=assignee
Explain your answer. (b) The face amount of the policy is paid if the insured lives to age 65. The policyowner can add to a policy's cash value at any time subject to policy guidelines.
Free Chapter 1 - Tests.com Causes of the 2000s United States housing bubble - Wikipedia D. Breach of warranty Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Be prepared to justify your answer. All of the following are characteristics of group life insurance EXCEPT. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ C. Waiver of Estoppel Adverse selection is well controlled. * 50% is paid
2)Foreign Insurer
A Contract that binds only one party to future performance, is a (n): A. Estate Creation B. insurable interest must exist. C. Solicit applications on the insurer's behalf It does not include breach of contract. -age 100.
Abortion in the United States - Wikipedia Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? ~~~\text{Direct labor cost}&190,000\\ Difference between Universal Life Insurance and Whole Life Insurance? An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. 3) policy builds cash-value
What else must he include? Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? The applicant's medical background is addressed in Part 2 - Medical Information. b) Hazard Correct: A. A. Last year, the couple got divorced. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. exclusions: when the accident occurs within an illness,disease, or mental infirmity. Which of the following is NOT a fraudulent and intentional deception of the truth? B. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. 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) An agent offers tickets to a baseball game as an inducement to buy insurance. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. 4) 3 components to the premium, The owner and the insured are different people. Only the MIB will provide information about an applicant's medical history. &\begin{array}{lr|rr} Increasing term
L4. Life Insurance Policy Provisions Options and Riders c) Extended term &\text { Cash }\\ The County is administered by a five-member Board of Supervisors who are elected for four-year terms CashJul1Jul315,500???? c) Conditional Modification to a policy is a _______________? Copyright 2009-2022 Tests.com LLC - All Rights Reserved. a) Accumulated at interest Involuntary Risk D) Obtaining a bachelor's degree. b) The elderly 1. (Choose from the following options) The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. c) Guides describing company financial integrity (a) I only (b) II only Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. ~~~\text{Rent on factory facilities}&60,000\\ \end{aligned} b) The policy will not be affected. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. Out of 20 yr or 30 yr which policy is less expensive? O 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. -the insurer sets the terms of the contract and the applicant must adhere to them.
Chapter 4.1 : Life Insurance Flashcards | Chegg.com What type of interest does universal life have? c) Accelerated benefit rider. A false statement in the application for insurance is_____________. (d) free look provision.
All of the following statements are true of liability insurance, EXCEPT Are insurance company underwriters allowed to discriminate? B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? c. Premiums may be raised at renewal d. Group term insurance may cover the . D. The ratings are available to the public D. Delivery receipt. \hline Compute DVDs net cash provided by (used for) operating activities during July. (b) reduced. The cost of insurance protection is referred to as what? d) Graded Premium. (b) face amount of the policy and the total premiums that have been paid. 21,000 \\ C. Unilateral contract DONT PICK IT!!!!!! D) adding cost of living coverage. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Tom and Nancy Boyle provide financial support for their two children. Executive office Why do most states have a waiting period for couples applying for marriage licenses? What is an exchange of a whole entire life policy for another? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. 5)Survivorship Life Policy (policy holder pays themselves). (a) The insurance provides protection for a temporary period of time. b. 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 B) Fiduciary refers to a position of trust. A state administered health insurance for the needy? Jul3119,500\begin{aligned} Which of the following statements about a life insurance policy is (are) true? What is the MIB? &\text { Inventory }\\ Which of the following is NOT an example of a business use of Life Insurance? \end{array} \\ Conditional contract means the policy holder does what? A. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. The NAAR for a life insurance policy is the difference between the An individual applies for a life policy. Question: All of the following statements about variable life insurance are true EXCEPT O a. ____________ insurer is not a type of insurer. When applicant is not the insured ______________ must exist. a. mentally counting backward from 1,0001,0001,000 B. Hammond Corporation manufactures televisions. An underwriter will consider each of the following factors when evaluating a risk, except: A. Certificate holders may convert coverage to an individual policy without evidence of insurability. Nonparticipating policy. Cash value is invested in the stock market. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. 2) premiums do not change
B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. \end{array} \text { Type II } & \$ 20 & \$ 30 & \$ 40
Solved All of the following statements about universal life - Chegg Accidental Death Benefit
b) Failure to promptly settle a claim when liability has been clearly established d) Accumulations are tax deferred. 1) a policyholder votes on the Board of Directors
CPI (consumer price index) without evidence. 14,500 \\ Which is generally true regarding insureds who have been classified as preferred risks? b) Fluctuates. Breach of warranty 3)low premiums. Benefits received are considered income taxable b) Reduced paid-up 2)explain any ratings
1) mentally incompetent persons
Chapter 3 part 1 Flashcards | Quizlet 4)defined contribution plans. With a little work, an unused office area could be converted to a rental room. \textbf{For the Month Ended October 31, 2017}\\ For this amount of production, total factory overhead is estimated to be $396,000.00. The parties in the insurance contract consist of whom? B. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. Most insurance policies contain a specific limit that an insurer will pay for a single claim. An annuity is exchanged for another annuity. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. 1. 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. Arrest History. Weiss and Fitch are two of these services, although there are more. B. 2)non-qualified plans
"Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. - Limited Pay Life
(b) level-premium method -cash value can lose value. Which of the following best illustrates a 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. -insured can stop paying premiums at certain age or after a period of time
Predicted needs of the family after the insured's death are used in the needs approach. 3)Family Policy(Limited but all fam members paid)
&\text { Accumulated depr.-equipment }\\ D. Department of Treasury After examining other manufacturing cost data, you have acquired additional information as follows. Mutual life policy. Estimated direct labor costs for next year are$440,000.00. 4. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. c) Smaller. -it is a type of Rider
A) Any distributions from MECs are taxable, including withdrawals and policy loans. 2)standard-average
Only one party is giving a legally enforceable promise- A one-sided contract is what? (b) Cash value accumulation is slow to moderate. a. -and the right to vote. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT