The CAS number shown in an entry is typically . 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. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. c) An agent offers tickets to a baseball game as an inducement to buy insurance. B. &\text { Cash }\\ C. Buy-Sell agreements are normally funded with a life insurance policy &\begin{array}{lccc} Hazard 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. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. D. Agents report. -guarantee a stream of income to the person purchasing it known as the annuitant. Contract of adhesion B. 2)Legal Purpose 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? &&\\ All of the following statements about term insurance are trueEXCEPTa. (b) single-parent family. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. \end{array} After Alex has made 20 premium payments, his life insurance policy is considered 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. Mutual life policy. An insurer that is incorporated in the same state that they are doing business in is a_____________.? C. The insured may retain part of a risk through deductibles. The purpose of an estate clearance fund is to pay all of the following EXCEPT. All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant b) Fixed income All of the following are true of insurance except: Which of the following is NOT true about insurance? Terms that apply to the insurer not the applicant. B. Beneficiarys age 2)Straight Life All of the following are business uses of life insurance EXCEPT A. Steven prints a pamphlet to advertise his life insurance business. D. Represent the insured's interest What type of insurer has no capital stock? d) The Guaranty Corporation. One sided contract is a ______________ contract. D) Obtaining a bachelor's degree. Which of the following is NOT a fraudulent and intentional deception of the truth? c) Fixed premium c. Premiums may be raised at renewal d. Group term insurance may cover 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} A monthly deduction is made from a policy's cash value for the cost of insurance protection. If company pays dividends, then they are a? -pay for certain time and stop 2)can be sold as a rider to a whole-life policy. (4), 1)monthly A surplus lines broker deals with direct writing companies only d) Older. a) No penalties, since the owner is older than 59 a) Universal life 3)MIB=records of all previous insurances they had. Which of the following statements about a life insurance policy is (are) true? Reinsurer Assuming company. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. \text { Type I } & \$ 30 & \$ 35 & - \\ A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. The applicants(policy owner) Retention, Avoidance, and Transfer are all _________________. \text{Sales revenue}&&\$780,000\\ 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 underwriter will consider each of the following factors when evaluating a risk, except: A. Accelerated Living Benefit/Death Benefit is what type of rider? c) Counselor 4)Explain the policy and its provisions EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} 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? What is a statement in the application guaranteed true in all respects? B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. c) Smaller. All The statements made on the application are called ______? 2)quarterly The money in a savings account B. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. What is an exchange of a whole entire life policy for another? b) State attorney general (d) sandwiched family. Who is responsible for making sure the application is completed properly and all necessary info is obtained? 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 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 An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. The cost of a living rider is calculated by what? C. State Education Waiver c. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. 2)Decreasing term(premium is low) declining face value (d) annual premium and the annual policy dividend. D. Concealment 25,500, AccountspayableJul114,500???? The companys president is concerned about the accuracy of the income statement. To sell variable insurance what must you have? Which risk management type is shifting the risk of loss to a larger homogeneous group? D) Claims result from losses by a peril insured against in an insurance policy. All of the other statements are true. \end{aligned} 1)absolute assignment-all rights are assigned Cash value is invested in the stock market. The County is administered by a five-member Board of Supervisors who are elected for four-year terms -policyowners right provision c) Misrepresentation States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. 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. a) Tax-qualified 14,500 \\ Policyholders A. a) Withdrawals are not taxable. D) the minor in a juvenile policy. These individuals qualify for lower premiums than those in the other categories. -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? \textbf{EMPIRE COMPANY}\\ Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. D) They must be signed by both the Producer and the applicant. Type I rooms do not have wireless Internet access and are not available for the Business rental class. \underline{\hspace{40pt}}. When a policy is contributory how much is paid? -usually mutual fund security 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. Most policies can be renewed for additional periods without evidence of insurability. Insurance is considered a transfer of risk. ____________ insurer is not a type of insurer. b. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? 1) insured gets higher amount A false statement in the application for insurance is_____________. Acceptance C. A surplus lines broker accepts business only from non- resident agents Foreign. A corporation is the owner and beneficiary of the key person life policy. Increasing term d) All of the above. 1) mentally incompetent persons D. Breach of warranty b) Reduced paid-up a. mentally counting backward from 1,0001,0001,000 Concerning insurance, the definition of a fiduciary is Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. Dividends received by policyholders of a mutual insurer are not taxable. Health insurance decreases your healthcare costs. 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. (a) blended family. -immediately considered fully paid up Department of Defense Hammond Corporation manufactures televisions. d. The total of all cost sheets completed during the month is $628,880.00. (c) term insurance An__________ represents the insurer. a) Lump-sum approach All of the following statements concerning coinsurance are true, EXCEPT . a) Indeterminate Premium d. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Which term describes the probability of a loss? Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. 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. c) 15% for early withdrawal ? Which of the following about decreasing term insurance is true? Insurers use this law in order to predict certain types of losses and set appropriate premiums. d) Fiscal responsibility. Premiums are not tax deductible as a business expense. It has cash value that is invested into the stock market through mutual funds/securities. 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. 2)attorneys Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? Get more out of your subscription* Access to over 100 million course-specific study resources An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. D. Concealment 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. Which of the following statements concerning buy-sell agreements is true? What (5) Factors for GIO & GIB. whose covered? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ The death benefit varies according to investment experience. C. it is often experience-rated, with premrums based on expected losses. Prepare a pie chart of on-time delivery performance for last month. B) Fiduciary refers to a position of trust. Represent the insured's interest All of the following statements are true regarding mortgage protection insurance EXCEPT. All of the following are methods of payment? 2)Explain and collect any ratings also known as acceptance. d. It does not require a duty to be owed. A. \\ Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer B. Contract or form of ownership is a ______________? C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. D. Financial Experience. Coverage is available in $50,000 increments up to the maximum of $400,000. The correct answer is: Maggie's Piano Studio with 1 employee. 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. a) Agent's report Misrepresentation, Concealment and Deceit are all examples of what? &\text { Accounts payable }\\ Who assumes control over an insurance company's funds and management if it becomes insolvent? B. Insurance is not designed to cover _____________ losses. Which of the following is NOT an allowable 1035 exchange? 2)Variable annuity What are two reasons that people deposit money in banks? Economics questions and answers. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? . The designation will be void/. Buy-sell agreements are normally funded with a life insurance policy. Cash values can be borrowed at any time d) Contingent. Executive office A __________ represents the insured. After examining other manufacturing cost data, you have acquired additional information as follows. C. Buy-Sell agreements are normally funded with a life insurance policy (b) tax-free exchange provision b) A producer who handles insurer funds in a trust capacity. the application is used at the primary source of info. 2)APS=medical records 2)not payable in conjunction. 5)Explain when coverage begins -guaranteed/fixed/level payment, -Immediate "annuitization phase" What type of interest does universal life have? -its a rider Who gets $$money when the policy holder dies? Who is not a party to the contract and receives the benefits when the insured dies? 2)the face amount What characteristic must an annuity have if it is used to accumulate funds in an IRA? 3) Increasing Term. A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. A. ~~~\text{Raw materials purchases}&\$264,000\\ 2) form of interest sensitive life insurance(current market conditions influence the cash value) RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. Jul313,000\begin{aligned} Most agents try to collect the initial premium for submission with the application. B. c) A person who handles assets or money belonging to others. -cash value can lose value. a) Juvenile Life What are the temporary needs? a) Accepted accounting principal. 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. When does the grace period begin and how long is it? a) Accumulated at interest When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. B. This method of estimating . An agent has authority to do all of the following, except: A. Countersign insurance contracts -low commissions Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Which of the following statements about universal life insurance is true? D. An individual has an insurable interest in her or her own life. 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. 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? C. Consideration A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. -They provide coverage for risks that other insurers normally would not provide. B. -car accident not in conjunction with an illness The applicant's medical background is addressed in Part 2 - Medical Information. Level-increasing face value. Chapter 11 - Life Insurance. ? Endowments means policy is what(2) things? Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. A. D. Reduction is a method of managing risk. If the ultimate consumer is a business that collects and pays to the government VAT on . Company doing business in the state it was incorporated and owned by the stockholders(people who own stock) who received dividends and the right to vote???? Compensating executives -receiving dividends(when declared) Which model is the better fit for the data? C) the proposed insured. \hline & \text { Jul 1 } & 55,000 \\ A. D. The flexible premium. (a) I only (b) II only C. They can borrow higher amounts off of their policies d) Accumulations are tax deferred. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . 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). 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. D. The face amount remains the same throughout the life of the policy. All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. 1)premium payment C. Medical Background ~~~\text{Advertising expense}&90,000\\ Everything else equal, how would the factor below affect the market value of a stock? C. Solicit applications on the insurer's behalf Which nonforfeiture option provides coverage for the longest period of time? (b) Face amount decreases during the policy period, but premiums remain level. Applicant pays premium to make agreement. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ 1) Conditional Reciept The person who receives the benefit when insured dies. d) Living need rider. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers \hline (\$ 000) & 1 & 2 & 3 & 4 \\ B. Be prepared to justify your answer. (receive dividends & the right to vote). A Contract that binds only one party to future performance, is a (n): A. -ages 25,28,34,37,40 The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. b) Coverage ends and the policy cannot be reinstated. If the corporation collects the policy benefit, then B. 4)defined contribution plans. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. ~~~\text{Selling and administrative salaries}&75,000\\ Accidental Death Benefit 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. 4. 4)explain policy & provisions
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