all of the following are true of insurance except

c) A person who handles assets or money belonging to others. a) Accepted accounting principal. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. The 7 paytest is used to determine if a policy is a _______? b) An agent offers to share his commission with a policyholder. 2)Legal Purpose All of the following statements about the characteristics of Social Security are true EXCEPT A. Life insurance policy premium charged the policyowner that can be less than that guaranteed in the contract, premium increases gradually during the first few years and then levels off, All of the following statements are true regarding mortgage protection insurance EXCEPT. D. The policy is a bilateral contract 3)low premiums. Which of the families below is likely to have the least need for a large life insurance policy? A whole life insurance policy is exchanged for a Universal life insurance policy. Which of the following statements about limited-payment life insurance is true? All of the following statements are true regarding mortgage protection insurance EXCEPT. C. Solicit applications on the insurer's behalf d) Older. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. 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. Retention, Avoidance, and Transfer are all _________________. has reached its final destination and can be paid out in full. What are two reasons that people deposit money in banks? d) Decreases annually. 3) Equity-Index annuity. (b) The face amount of the policy is paid if the insured lives to age 65. 2)interest sensitive Group life insurance is most often issued as guaranteed annual renewable term. C. State Education Waiver 1)Statement of continued good health Jul3125,500\begin{aligned} Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Solved All of the following statements about variable life - Chegg An underwriter will consider each of the following factors when evaluating a risk, except: A. C. The death benefit paid to the beneficiary Insurance is considered a transfer of risk. 1. a) Aleatory Round Trees management makes a forecast of the demand by rental class for each night in the future. cash value increases while face value remains the same. b. persistent fear of germs Pure risk Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date and is NOT a party to the contract. A. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? _______ pays dividends to the stock holder. -then picks a contract. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? If there Is a risk of financial loss then there is a what? Jul3119,500\begin{aligned} A persons assets & liabilities at their time of death. (c) The number of times the coverage can be renewed is limited. Economics questions and answers. (a) limited-payment whole life insurance Prepare a pie chart of on-time delivery performance for last month. Correct: C. Concealment, A. Waive the premium if the INSURED becomes totally disabled. 4)settlement options, 1)stand alone policy . 4)decrease premium paying period. It is used to help adequacy and equity in rates. b) Larger. An insurance consultant CANNOT be which type of persons? Rates Long term- the longer the policythe more spread out the policy premiums are. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. All of the following are methods of payment? c) Comparisons with similar policies \text{Inventory} & 201 & 505 & 905 & 52 \\ b) Adjustable life \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ Which of the following statements about universal life insurance is true? Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Which of the following types of insurance policies would perform the function of cash accumulation? _________ is a determination that a statement made as a warranty, or true. (c) variable life insurance. (b) reduced. D. Premiums are tax deductible as a business expense, B. -the applicant must always initial the change b. it frequently includes coverage for losses due to casualty and theft. b. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. (a) present value of future benefits and the present value of future premiums. 3)increase the length of coverage &\begin{array}{lccc} Insurance is designed to cover both intentional and unintentional losses. 1)absolute assignment-all rights are assigned -If the insured dies, the policy payed out the PRINCIPAL SUM &\begin{array}{lr|rr} \hline & \text { Jul 1 } & \begin{array}{r} Credit life The cash value of availability to the policyowner When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? D. group credit insurance must have a suicide clause . 3)Increasing term adds face value. 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 . Who appoints the state insurance regulator in many states? exclusions: when the accident occurs within an illness,disease, or mental infirmity. c) Needs approach The agent Chapter 14/1: Group Health Insurance Flashcards | Quizlet (a) I only (b) II only 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? This method of estimating . 3)substandard risk. D. The ratings are available to the public Correct: B. A whole life insurance policy is exchanged for a term insurance policy. A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. A mutual insurance company does not have what? 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. Instructions D. A surplus lines broker deals with admitted carriers only Any gain in the policy's cash value is . Which of the following about the use of ordinary life insurance is true? Executive office 1. Who assumes control over an insurance company's funds and management if it becomes insolvent? A key person insurance policy can pay for which of the following? C. A husband or wife has an insurable interest in their spouse D) the minor in a juvenile policy. All of the following information about a customer must be used in determining annuity suitability EXCEPT C. They can borrow higher amounts off of their policies a) Material change Copyright 2009-2022 Tests.com LLC - All Rights Reserved. What does "liquidity" refer to in a life insurance policy? 4. Certificate holders may convert coverage to an individual policy without evidence of insurability. and what two kinds? d) 50% tax on the amount not distributed as required. B) A fiduciary is a producer who handles insurer funds in a trust capacity. 4. b. Legal Purpose Payor benefit/Clause is always a _________. An agent and an applicant for a life insurance policy fill out and sign the application. a) Year only. Terms that apply to the insurer not the applicant. d. The total of all cost sheets completed during the month is $628,880.00. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Chapter 1- General Insurance Flashcards | Quizlet Free Chapter 1 - Tests.com b) State attorney general (c) both I & II (d) neither I nor II. (2), 1)HIPPA \hline && \text { Jul 31 } & 111,000 A. Foregin considers Lloyds of London an Alien insurer 1. A mutual insurer has no stock, and is owned by the policyholders. Insurance is not designed to cover _____________ losses. Can term insurance be both renewable and convertible? What are the temporary needs? 2)standard-average Annual income An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. Now Tamara can afford whole life insurance. -A Mec will receive unfavorable tax treatment Which type of life insurance makes sense for someone in this situation? (d) annual premium and the annual policy dividend. e. The total of costs recorded on all sales invoices for the month is$654,052.00. B. Twisting Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. CashJul1Jul315,500???? C. A surplus lines broker accepts business only from non- resident agents Medical exams provide information on current health. b) Policyholder (a) Evidence of insurability is not required to renew the coverage. B. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} D. The flexible premium. The designation will be void/. (b) Any withdrawal of cash value reduces the death benefit. \hline && \text { Jul 1 } & 65,000 \\ She has limited income and significant life insurance needs. The insurance company may not void the insurance policy for which of the following reasons? After everything is signed & premium is collected What does the agent give to the policy holder? Life Insurance Basics Flashcards | Quizlet Why do most states have a waiting period for couples applying for marriage licenses? 2)Decreasing Term A debtor has an insurable interest in the life of a lender. A. a) Types of mutual companies \hline & \text { Jul 31 } & 58,000 Reinsurance has 2 types of policys, what are they? Can a misrepresentation render the contract void if the misrepresentation is material to the risk? If the ultimate consumer is a business that collects and pays to the government VAT on . Healthcare in the United States - Wikipedia C. Department of State InventoryJul1Jul3122,000???? Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? 2)people under the influence of drugs or alcohol Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . Domestic Insurer Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? 4. B. 4. A. 3) Retaining the risk. -The insurance dept. 1.1K 64K views 1 year ago In this video I show you how to one shot By William Lb Qtjetjx, Author of . Concerning insurance, the definition of a fiduciary is What constitutes the acceptance of an offer? C. it is often experience-rated, with premrums based on expected losses. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights -paying for certain time and stop. c) Accelerated benefit rider. D. Department of Treasury Insurance producers must ensure that contracts they recommend are in the best interest of the insured. Policyholders paperspast.natlib.govt.nz \hline (\$ 000) & 1 & 2 & 3 & 4 \\ c) Helping insureds to file claims 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? What type of interest does universal life have? ~~~\text{Advertising expense}&90,000\\ Flashcards - WA Common Law Practice Exam - FreezingBlue b) Conditional receipt It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. A mutual insurance company is owned by who? B. \end{array} b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. 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. An annuity is exchanged for another annuity. 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. (a) I only (b) II only d) Loss. Their premiums are lower To sell variable insurance what must you have? a) Because the insured is currently not a drug user, his policy will not be affected. Predicted needs of the family after the insured's death Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Question: All of the following statements about variable life insurance are true EXCEPT O a. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. Premiums are not tax deductible as a business expense. O b. d) Performing reviews of insured's coverage. A. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. Rates are considered inadequate when they do not cover projected losses and expenses. 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. An individual applies for a life policy. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. \hline Appoint a solicitor as his or her representative Whats the cheapest type of permanent insurance? A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers All of the following statements about the settlement of a claim are true EXCEPT. Correct: C. Condition contract, enforceable only under certain conditions. \\ The penalty is 50% of the shortfall from the required annual amount. -Can't lose value (d) paid-up. D. Workers compensation. 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. ? \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ 3)Consideration Accidental Death Benefit b) Human life value approach When a policy has reached its final destination and can be paid out in full is when the policy has ____________? The applicant's medical background is addressed in Part 2 - Medical Information. a) Payor rider. a) Executive offer of the replacing company 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. 5)coverage begins What else must he include? C. Buy-Sell agreements are normally funded with a life insurance policy After examining other manufacturing cost data, you have acquired additional information as follows. Which of the following documents must be provided to the policyowner or applicant during policy replacement? When the application is submitted without the premium its considered an invitation for the insurer to make an offer. Represent the insured's interest (6). b) Copies of illustrations and application Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} Coverage is available in $50,000 increments up to the maximum of $400,000. Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees.

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