-its a rider -kids till 21 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". Flashcards - PSI online exam Life Insurance - FreezingBlue Prior to October 2017, the company had been profitable every month. d) Policy dividends. A. All of the following statements are true regarding mortgage protection insurance EXCEPT. a) The policyholders or stockowners of the company -The insurer would pay the face amount of the policy minus the past due premium. and is NOT a party to the contract. A life insurance policy is exchanged for an annuity. 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 Level-increasing face value. There are 2 parties of the contract- what are they? Which of the following is a physical hazard? -age 100. He would also like to invest in a mutual fund. compulsion? \end{array} M327. &\text { Retained Earnings }\\ -Take it or leave it contract All of the following are true of key person insurance EXCEPT ) The key employee is the insured. C. Premiums are tax deductible by the key employee ~~~\text{Rent on factory facilities}&60,000\\ 2)no cash-value 1. 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. Which of the following is NOT an example of a business use of Life Insurance? (a) I only (b) II only C. Certain Risk considers Lloyds of London an Alien insurer c) Accelerated benefit rider. c) 15% for early withdrawal Insurance is designed to cover both intentional and unintentional losses. C. Independent rating services evaluate and rate the financial ability of insurance companies B. Avoidance (b) level-premium method 1) coverage is permanent -guaranteed/fixed/level payment, -Immediate "annuitization phase" B. C. Payment of premium Our records show that more than one device is associated with this Which of the following is an example of an unfair claims settlement practice? (a) Interest is credited monthly to a policy's cash value. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. 4)settlement options, 1)stand alone policy Most policies can be renewed for additional periods without evidence of insurability. Participating policy. A. Question: 55. 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. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ Which of the following is true regarding the beneficiary designation of the former spouse. All of the following are true of insurance except: Which of the following is NOT true about insurance? With a little work, an unused office area could be converted to a rental room. Its controller resigned in October 2017. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. The companys president is concerned about the accuracy of the income statement. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? \text{Sales revenue}&&\$780,000\\ Beneficiary's age is not a suitability factor. 1) a policyholder votes on the Board of Directors Liquidity in life insurance refers to availability of cash to the insured. Past-due interest on a policy loan is added to the total debt. d) All of the above. -receiving dividends(when declared) -They provide coverage for risks that other insurers normally would not provide. The issuance of a binder is the result of the ___________________ of an offer. 3. Which of the following about the use of ordinary life insurance is true? 10 year level term -the applicant must always initial the change 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution D. Offer A. C. It's a decreasing term insurance. When must insurable interest exist in a life insurance policy? An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. 2)standard-average Hospital bills of the key employee \end{array} 2)attorneys Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} -But pays you interest, 1)Fixed annuity Payor benefit/Clause is always a _________. &\text { Accounts receivable }\\ 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 I. exclusions: when the accident occurs within an illness,disease, or mental infirmity. The death benefit varies according to investment experience. C. Insured's annual expenses The applicants(policy owner) As her friend, you have been asked to review the income statement and make necessary corrections. Free Chapter 1 - Tests.com B. 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. c) Conditional _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. A) the agent. Chapter 1- General Insurance Flashcards | Quizlet 1)Level b) Coverage ends and the policy cannot be reinstated. 2)Explain and collect any ratings . 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. 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. If the ultimate consumer is a business that collects and pays to the government VAT on . Term. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. Insurance is not designed to cover _____________ losses. The policy's cash value grows as the investments grow. B. The concept that the insured should not profit from an insurance transaction is called what? c. Insurance transfers risk but it does not__________ risk. &\text { Rental Class }\\ C) Completing pre-licensing training. Beneficiary's age Occupation 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. A whole life insurance policy is exchanged for a Universal life insurance policy. 2)the face amount d) Paid-up option. In this case, the applicant will most likely need to fill out a Statement of Good Health. -Can't lose value 2)explain any ratings &\begin{array}{lr|lr} Steven prints a pamphlet to advertise his life insurance business. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. The policyowner has a variety of options for investment of the cash value. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. c) An agent offers tickets to a baseball game as an inducement to buy insurance. a) Because the insured is currently not a drug user, his policy will not be affected. B. (a) universal life insurance. A policy that does not pay dividends to policyowners is a A company doing business in the same state it was incorporated in and owned by the policy holders. 4) Joint-Life policy(business part) Insurance policy of 2 or more c. Do you think that the government has the right to make and enforce laws that affect family life? What adds coverage and modifies coverage? C. Solicit applications on the insurer's behalf (b) current assumption whole life. The agent Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} What does it mean when a policy is limited pay life? L4. Life Insurance Policy Provisions Options and Riders 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. Newborns after how many days become covered in a child rider? A person who negotiates insurance contracts on behalf of an insured. A. Difference between Universal Life Insurance and Whole Life Insurance? -usually mutual fund security ~~~\text{Indirect labor cost}&28,000\\ To sell variable life insurance policies, an agent must receive all of the following EXCEPT It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. All of the following are true of negligence, except: - AZanswer C. A surplus lines broker deals with direct writing companies only Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. 4. ~~~\text{Raw materials purchases}&\$264,000\\ d. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? C. They can borrow higher amounts off of their policies All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. See Page 1. (a) renewal provision Universal Life is also known as two things what are they? c) Misrepresentation 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? When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? 3. b. Which of the following statements about endowment policies is true? Insurance companies can charge an interest rate based on the policyowner's credit report. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT D. Financial Experience. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet B. a) Using arbitration when the insured and insurer cannot reach agreement a) Consumer Privacy Act B. Insureds current and future income Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Buy-sell agreements are normally funded with a life insurance policy. c) Whole Life Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue A peril (b) variable life insurance B. All of the following statements about the characteristics of Social Security are true EXCEPT A. c) 10 years. ch2 Flashcards | Quizlet Group life insurance is most often issued as guaranteed annual renewable term. Policyholders 3. Their premiums are lower 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) Insurance covers intentional losses as well as unintentional. The shifting of risk of loss to a larger homogeneous group is known as what? A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. B. Value-added tax - Wikipedia a) More active. Foreign. b) Outline of coverage (a) Evidence of insurability is not required to renew the coverage. True or False: Under the Financial Responsibility Law, you are required 2)non-qualified plans Now Tamara can afford whole life insurance. 4) 3 components to the premium, The owner and the insured are different people. An underwriter will consider each of the following factors when evaluating a risk, except: A. C. Hazards e. The total of costs recorded on all sales invoices for the month is$654,052.00. 1) Conditional Reciept Tom and Nancy Boyle provide financial support for their two children. ADD( Accidental death and dismemberment??? Only the MIB will provide information about an applicant's medical history. Cash values are available in whole life policies. (a) They increase at an increasing rate. (d) They remain level. d) Accumulations are tax deferred. (d) endowment insurance, Rachel needs permanent life insurance. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. The cash value of availability to the policyowner B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. Only one party is giving a legally enforceable promise- A one-sided contract is what? Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Signed waiver of premium Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. (a) blended family. \hline \text { Jul 1 } & 5,500 &&\\ After Alex has made 20 premium payments, his life insurance policy is considered Premiums are taxable to the employee Type I rooms do not have wireless Internet access and are not available for the Business rental class. Prepare the following details: Mobile number, serial number, or IMEI. 3)Rider expires 60,65,75. An aleatory contract is a contract where the monetary values of the parties performances are________________. b. it frequently includes coverage for losses due to casualty and theft. -low commissions A. b) Index used by stock companies c) Copy of the original application Correct: A. CashJul1Jul315,500???? Correct: C. Unilateral contract. 2)quarterly Which of the following statements is not correct regarding rates and premiums? A conditional or binding receipt is given when an applicant does what? Who is not a party to the contract and receives the benefits when the insured dies? 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. a) No penalties, since the owner is older than 59 5th Sunday after Epiphany Saint Barnabas | By Saint Barnabas Episcopal 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. An applicant is denied insurance because of information found on a consumer report. Arrest History. b) Adjustable life Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? What kind of penalty would the IRA owner pay? 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. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. -If the insured dies, the policy payed out the PRINCIPAL SUM An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. D) the minor in a juvenile policy. -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? paperspast.natlib.govt.nz a) Accumulated at interest 2)administered charge (c) variable life insurance. Correct: C. Condition contract, enforceable only under certain conditions. D) Obtaining a bachelor's degree. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. D) the minor in a juvenile policy. d) Loss. -paying for certain time and stop. 3)premium is collected -Voting. Any gain in the policy's cash value is . A mutual insurance company is owned by who? The remaining amounts should be charged to selling and administrative activities. All of the following statements about term insurance are trueEXCEPTa. 2)premium gets lower. C. it is often experience-rated, with premrums based on expected losses. (c) face amount of the policy and the legal reserve. Be prepared to justify your answer. b) 5 years only. I. B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. C. Buy-Sell agreements are normally funded with a life insurance policy (c) Most policies can be converted to a permanent life insurance policy. What happens when a policy is surrendered for its cash value? 1)policy owner can increase/decrease/ or skip premium payments ? Fraud \hline \text { Jul 1 } & \begin{array}{r} \textbf{EMPIRE COMPANY}\\ Most insurance policies contain a specific limit that an insurer will pay for a single claim. Which is generally true regarding insureds who have been classified as preferred risks? a) Premium amounts and surrender values 2. (c) both I and II a. whole life paid at 65 b) Universal Life (must exist at the time of application). Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds 2. 3,000, AccountsreceivableJul121,000???? has reached its final destination and can be paid out in full. Which of the following is the basis for a claim against an insurance policy? &\text { Accumulated depr.-equipment }\\ Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 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? d) 50% tax on the amount not distributed as required. _________ is a determination that a statement made as a warranty, or true. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ &\begin{array}{lr|rr} ~~~\text{Depreciation on sales equipment}&45,000\\ The application is the basic source of information an insurer uses in the risk selection process. c. Premiums may be raised at renewal d. Group term insurance may cover the . 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 Rates. How has the Aswan High Dam affected the lives of Egyptians? &\text { Inventory }\\ d) The policy can be reinstated by paying back all policy loans and premiums. All of the following statements about the settlement of a claim are true EXCEPT. B. (b) single-parent family. B. Increasing term Whoso. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. B. Marital Status A. 2)Straight Life -20 pay life-paid up at 65 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. B. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. C. Loss of personal income a) A medical examination \textbf{For the Month Ended October 31, 2017}\\ a. The policy is a contract of adhesion 3)Minors. A. Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. All of the following are true about health insurance except: If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. C. Domestic \hline && \text { Jul 31 } & 111,000 3)Increasing term adds face value. How much life insurance should Sam advise . D. Aleatory contract EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} -has cash value invested in the stock market Appoint a solicitor as his or her representative Correct: D. Concealment. C. group credit life insurance does not build cash values. All The statements made on the application are called ______? -ages 25,28,34,37,40 1)physical exam &\begin{array}{lccc} An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? ? (3), WHat is the difference between universal and whole life policies? D. Delivery receipt. 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). The insurance company may not void the insurance policy for which of the following reasons? D. They can decide when to pay their monthly premiums. (c) both I & II (d) neither I nor II. All of the following are common characteristics of this coverage EXCEPT -the insurer sets the terms of the contract and the applicant must adhere to them. (c) expired. (b) face amount of the policy and the total premiums that have been paid. a) Payor rider. What are the 3 characteristics of a Mutual Insurance Company? (a) I only (b) II only 3)riders & exclusions 3. b) Copies of illustrations and application 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. All of the following statements about term insurance are true EXCEPT. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights $ cant exceed indebtness. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. \hline & \text { Jul 1 } & 55,000 \\ (receive dividends & the right to vote). Members are assessed to fund the corporation. 3)increase the length of coverage ____________ is a statement that is true to the best of the persons knowledge that is making the statement. 1)Statement of continued good health C. The benefit is received as taxable income All of the following statements about universal life insurance are true EXCEPT C. Countersign insurance contracts D. The face amount remains the same throughout the life of the policy. 1. cash value increases while face value remains the same. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. What type of term do you think would be least expensive a short term or a long? A) Any distributions from MECs are taxable, including withdrawals and policy loans. \hline && \text { Jul 1 } & 65,000 \\ Non-Participating (stock) Life Insurance Policy.