2)Family Income(decreasing term-policy) C. Medical Background b) Unilateral The insurer that is transferring the risk to another company is called the ____________ __________. D) Claims result from losses by a peril insured against in an insurance policy. (c) variable life insurance. B. Executive office \end{array} c) To protect the policyowner -policyowners right provision D. Accident What will probably happen? A. Which term describes the probability of a loss? All of the following statements about term insurance are trueEXCEPTa. Cash values are available in whole life policies. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. c. Using the payback period, which project should Bill choose? _________ is a determination that a statement made as a warranty, or true. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? To sell variable insurance what must you have? Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. A. &\begin{array}{lr|rr} The applicant's medical background is addressed in Part 2 - Medical Information. An Insurance Broker is responsible for what? Now Tamara can afford whole life insurance. the underwriting process is approved for: A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. What happens when a policy is surrendered for its cash value? B. Nonadmitted Liquidity in life insurance refers to availability of cash to the insured. D. The face amount remains the same throughout the life of the policy. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. Fraud ? This is called. 2) Transferring the risk Funding against financial loss caused by the death of a key employee B. B. b) To deter the policyowner from committing suicide &\begin{array}{cr|} c) Disclosure rule Pure Risk. A FINRA registration. Which risk management type is shifting the risk of loss to a larger homogeneous group? Which of the following is a physical hazard? It is used to help adequacy and equity in rates. A) They must be given to all Life insurance applicants. D. Department of Treasury (D The employer is the owner, payor and beneficiary of the policy. Acceptance Which of the following is the basis for a claim against an insurance policy? Level-increasing face value. It is most appropriate when an insured needs lifetime protection. The policy is a conditional contract In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. and what two kinds? Health insurance decreases your healthcare costs. (c) both I and II 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". The policy is a contract of adhesion. 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. (2), 1)HIPPA Which of the following is the basic source of information used by the company in the risk selection process? when the applicant/owner is not the insured-3rd party Hammond Corporation manufactures televisions. When a policy is contributory how much is paid? The parties in the insurance contract consist of whom? Correct: C. Consideration. 1) insured gets higher amount Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. Premiums are not tax deductible as a business expense Insurance is considered a transfer of risk. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. Appoint a solicitor as his or her representative \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ In a car accident dealing with ADB who covers the passenger? b) Failure to promptly settle a claim when liability has been clearly established There is no limitation on the number of key employee plans in force at any one time B. To sell variable life insurance policies, an agent must receive all of the following EXCEPT b) The policy will not be affected. A life insurance policy is exchanged for an annuity. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT \text { Type II } & \$ 20 & \$ 30 & \$ 40 \end{array} d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. O b. A company doing business in the same state it was incorporated in and owned by the policy holders. Legal Purpose C. Certain Risk All of the following are true of key person insurance EXCEPT ) The key employee is the insured. The issuance of a _________ is the result of the acceptance of an offer. the application is used at the primary source of info. B. 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. b) Human life value approach An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. What adds coverage and modifies coverage? The policy does not go into effect until the premium has been collected. The penalty is 50% of the shortfall from the required annual amount. D. Concealment For example, a claim will be paid only is there has been a covered loss. The NAAR for a life insurance policy is the difference between the &\text { Retained Earnings }\\ Who gets $$money when the policy holder dies? (a) The insurance provides protection for a temporary period of time. 3)Minors. 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. Conditional Contract II. Waiver of Premium- What happens to the insurer? c) Needs approach Beneficiary's age is not a suitability factor. 3)riders & exclusions II. An agent has authority to do all of the following, except: A. Countersign insurance contracts \hline \text { Jul 31 } & 3,000 3)certified public accountants, Is insurance that is provided by the Federal or State government 2)standard-average b) Fluctuates. B. this insurance is often written in connection with automobile loans. C. Independent rating services evaluate and rate the financial ability of insurance companies c) Whole Life Term. C) the proposed insured. 3)MIB=records of all previous insurances they had. d) Military personnel. 2)administered charge This form of life insurance has fixed premiums and the cash value is not guaranteed. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ Empire Company is a manufacturer of smart phones. A. \hline \text { Jul 1 } & \begin{array}{r} 1)Domestic Insurer \end{array} 2)when benefits begin d) Limited pay. &\begin{array}{lccc} Only the MIB will provide information about an applicant's medical history. What is NOT invested in the stock market but pays you interest? Conditional contract means the policy holder does what? -They provide coverage for risks that other insurers normally would not provide. B. Twisting c. continuous premium whole life Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. What else must he include? a) Using arbitration when the insured and insurer cannot reach agreement A) loss reserves 2. Whats the cheapest type of permanent insurance? The concept that the insured should not profit from an insurance transaction is called what? ________________ are the person who receives benefits payable upon death. Prepare the following details: Mobile number, serial number, or IMEI. B) The plan is funded by permanent insurance only. How does having children affect the decisions that couples must make when considering a divorce? Predicted needs of the family after the insured's death Annual income C. The insurer is always required to pay the . 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. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ 4)explain policy & provisions If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. Department of Defense ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} \text{Inventory} & 201 & 505 & 905 & 52 \\ &\begin{array}{l|lr} (a) They increase at an increasing rate. Which of the following best illustrates a The insurer issues the policy and learns of his history one year later. B) Fiduciary refers to a position of trust. Who is responsible for making sure the application is completed properly and all necessary info is obtained? (c) both I & II (d) neither I or II. c) Misrepresentation &\begin{array}{lr|lr} Estate conservation In order for the contract or policy to be valid or legal? When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. 3)2 Death benefits-(level/increasing) Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. D. Workers compensation. A. 3)according to the source of annuity income (b) Cash value accumulation is slow to moderate. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} B) the applicant. b) A producer who handles insurer funds in a trust capacity. The debtor does not have an insurable interest in the life of the lender. The premium is level and guaranteed not to increase. For this amount of production, total factory overhead is estimated to be $396,000.00. The cost of insurance protection is referred to as what? The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. A _______ __ is the additional premium needed to get covered with high or substandard risk. & \text { Depr } & 3,000 \\ When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. D. Solicit applications on insurer's behalf &\text { Accounts payable }\\ 4)settlement options, 1)stand alone policy (Choose from the following options) (b) Most policies can be renewed without evidence of insurability. b) Index used by stock companies There are 2 parties of the contract- what are they? - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. Question: 55. The applicant accepts the invitation by paying the ___________. 3)substandard risk. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. What type of interest does universal life have? D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. 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? 5)Explain when coverage begins 3)substandard-highest, 6 factors that are complete for policy 2 be paid? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. She has limited income and significant life insurance needs. A surplus lines broker deals with direct writing companies only the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. Their premiums are lower A. B. An__________ represents the insurer. Tax-qualified annuities are subject to IRA maximum contribution limits. d. The total of all cost sheets completed during the month is $628,880.00. 1)temporary 1) All requirements are met Retention, Avoidance, and Transfer are all _________________. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. ? Most policies can be renewed for additional periods without evidence of insurability. 4. Rates also known as acceptance. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. Can term insurance be both renewable and convertible? He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. A policy summary The ___________ controls all rights of the contract. d) Contingent. All of the following statements about universal life insurance are true EXCEPT 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. Who is not a party to the contract and receives the benefits when the insured dies? The following information is taken from the records of Hammond on November 30 of the current year. I. Nature of risk All renewable term policies are accepted without__________ and only with_____ collected. (b) They increase at a decreasing rate. Modification to a policy is a _______________? a. b. C. Department of State Whoso. An annuity is exchanged for another annuity. A false statement in the application for insurance is_____________. A. Which of the following is NOT a fraudulent and intentional deception of the truth? Insurance is designed to provide protection against which of the following? (a) matured. 2) Binding Reciept. 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. A surplus lines broker accepts business only from non- resident agents 4)underwriting is complete When must insurable interest exist in a life insurance policy? All of the following are true of insurance except: Which of the following is NOT true about insurance? B. 2)quarterly EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} 2)Explain and collect any ratings What is an exchange of a whole entire life policy for another? Prior to October 2017, the company had been profitable every month. Something of value is a __________________. 2)Foreign Insurer Insurance producers must ensure that contracts they recommend are in the best interest of the insured. -usually mutual fund security The storage of flammables in a fireproof container. An insured owns a life insurance policy. Nonparticipating policy. Permanent Insurance have 3 words in common, what are they? *Both not taxable. -and the right to vote. b) Coverage ends and the policy cannot be reinstated. Credit life (c) human life value method DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Term life insurance provides the largest amount of coverage for the lowest amount of premium. 2)Decreasing term(premium is low) declining face value -20 pay life-paid up at 65 An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. 1)physical exam It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. \hline & \text { Jul 31 } & 58,000 Correct: D. Concealment. How has the Aswan High Dam affected the lives of Egyptians? a) A medical examination 3) type of plan they applied for. If there Is a risk of financial loss then there is a what? \hline \text { Jul 31 } & 17,000 B) bonds 3. What is a statement in the application guaranteed true in all respects? It is used to pay off the balance on the mortgage. (b) tax-free exchange provision RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. a) To limit the insurer's liability after the 2 year waiting period (1), In Universal life, what options can the policy owner have with the premium payments to do? 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? D. Represent the insured's interest B. 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. 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. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles A Contract that binds only one party to future performance, is a (n): A. Alex, age 26, purchased a 20- payment whole life insurance policy. Concerning insurance, the definition of a fiduciary is States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. Universal Life is also known as two things what are they? InventoryJul1Jul3122,000???? C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Which of the following is true regarding the beneficiary designation of the former spouse. 1. D) Obtaining a bachelor's degree. Premiums are taxable to the employee 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? ~~~\text{Rent on factory facilities}&60,000\\ D) the minor in a juvenile policy. 2)the face amount A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Contract of adhesion A ____ contract requires that both parties perform certain duties. It is the specific cause of loss. She meets the definition of total disability under Social Security. \hline \text { Jul 1 } & 5,500 &&\\ A. (d) annual premium and the annual policy dividend. -receiving dividends(when declared) -the premiums are paid for a limited time only. Tom and Nancy Boyle provide financial support for their two children. -below market interest rates on borrowing The cash value of availability to the policyowner There is a limit for a withdrawal and the insurer charges a fee. \hline \text { Jul 31 } & 25,500 3) Ordinary. D. Offer d. falsely believing that a spouse has been B. Most agents try to collect the initial premium for submission with the application. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 2) standard risk They keep a high percentage of any interest earned on their policies Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. Payor benefit/Clause is always a _________. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Round Trees management makes a forecast of the demand by rental class for each night in the future. In this case, the applicant will most likely need to fill out a Statement of Good Health. Various life insurance programs for people who served in the military are called ______________? CPI (consumer price index) without evidence. C. The death benefit paid to the beneficiary 3)they provide insurance to members. a) Universal life (3), 1)bank trust officer C. The benefit is received as taxable income \end{array} All of the following are true of insurance EXCEPT It transfers risk. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds If you don't have health insurance, you pay all costs for healthcare and medical emergencies. D) Insurance covers intentional losses as well as unintentional. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded 4. C. The policy is an aleatory contract Address of his principal office B. 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. 2. B. An insurer that was incorporated in a different state that it is doing business in. All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. 1)cont. a) Small employers 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. 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 . C. Tax Status Adverse selection is well controlled. Which of the following about yearly renewable term insurance is true? D. group credit insurance must have a suicide clause . Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. A. Which kind of agent enters into agreements with more than one insurer? c) Policy loans are taxable distributions. Type I rooms do not have wireless Internet access and are not available for the Business rental class. When an applicant pays the initial premium the agent will give them a what? All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. 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. 4. An insurance company that was incorporated in a different state it is doing business in and pays dividends to its policyholders is known as a _________. -Take it or leave it contract still matures at age 100, -premium is paid off at one time Insurers use this law in order to predict certain types of losses and set appropriate premiums. ADD( Accidental death and dismemberment??? What is the MIB? 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. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. d) Buyer's Guide. (b) Face amount decreases during the policy period, but premiums remain level. c) Extended term The insurance company may not void the insurance policy for which of the following reasons? The agent (a) I only (b) II only B. Beneficiarys age 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. 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. d) Graded Premium. 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???? b) An agent offers to share his commission with a policyholder. \textbf{Income Statement}\\ Beneficiaries are NOT required to sign the application unless they are also the owner. C) They must contain a warning that actual results may vary. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. -ages 25,28,34,37,40 b. D. The ratings are available to the public (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. C) Completing pre-licensing training. B. AKA-payout phase. -immediately considered fully paid up c) Variable Premium \end{array} A peril A. After insurer makes an offer, what must the applicant do? Out of 20 yr or 30 yr which policy is less expensive? Which method makes the most sense for her to employ? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. 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 . Cash values can be borrowed at any time Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. B. Aleatory contract \hline \text { Jul 1 } & 22,000 \\ The 4 characteristics of a universal life policy are? However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. Cash value is the same as ___________ when the policy matures. D. Reduction is a method of managing risk. If the corporation collects the policy benefit, then (b) reduced. What is the term for a cause of loss, such as the theft of a car? D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Group life insurance is most often issued as guaranteed annual renewable term. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. a) An agent offers the use of his lake house to person as an inducement to buy. D. Premiums paid are deductible as a business expense. I. (a) renewal provision All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. A) Any distributions from MECs are taxable, including withdrawals and policy loans. Which of the following best describes a surplus lines broker? c) Conditional Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? Correct: A. If a change in the application is necessary what is required? 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. * 50% is paid B. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? Participating policy. Reinsurer Assuming company.