S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. After examining other manufacturing cost data, you have acquired additional information as follows. II. \end{array} Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. 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. (b) The face amount of the policy is paid if the insured lives to age 65. All of the following statements about ordinary life insurance are true EXCEPT. A key person insurance policy will pay for costs of running the business and replacing the employee. Cash values are available in whole life policies. D. Reduction is a method of managing risk. database of previously life and health insurance applications. All of the following statement regarding credit life insurance are true, except: A. credit life insurance may be written on either and individual or group basis. IN WHITE RAIMENT. Funding against financial loss caused by the death of a key employee B. -it is a type of Rider What are (4) characteristics of permanent insurance? \end{array} This method of estimating . 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? Copyright 2009-2022 Tests.com LLC - All Rights Reserved. How does having children affect the decisions that couples must make when considering a divorce? 2)Straight Life Can a misrepresentation render the contract void if the misrepresentation is material to the risk? AccountspayableJul1Jul3114,500??? The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. &\begin{array}{l|lr} 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. 4)Consumer report=credit, -shorter time span for paying premiums When applicant is not the insured ______________ must exist. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. C. Consideration B. I. Quarterly working capital levels for your firm for the next year are included in the following table. -tax free accumulation of borrowing. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? -receiving dividends(when declared) Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. D) Obtaining a bachelor's degree. -immediately considered fully paid up -cash value options Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. Which type of risk involves the possibility of loss or gain? compulsion? &\text { Accumulated depr.-equipment }\\ b) Copies of illustrations and application Which of the following is usually true of a participating life insurance policy? 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 a) Small employers Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. -assignor=assignee He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? Occupation Mutual life policy. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. -its a rider b) Coverage ends and the policy cannot be reinstated. 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. B. A producer wishing to appeal the final order of the commissioner would appeal to???? Rates 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. &\text { Accounts receivable }\\ \end{aligned} Cash value is the same as ___________ when the policy matures. Level-increasing face value. If someone dies within the Grace period, what happens? D. Viatical settlement. What are (4) ways annuities are classified? Investors become more risk averse. B. They keep a high percentage of any interest earned on their policies 2)premium gets lower. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. All of the following are required signatures on a life insurance application EXCEPT. What happens when there is a Misstatement of age or sex? 3)according to the source of annuity income d) The Guaranty Corporation. What are the two options in death benefit options? 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. (a) I only 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. (c) PV of the family's share of a deceased breadwinner's future earnings. 1) insured gets higher amount \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ The designation will be void/. A mutual insurance company is owned by who? ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. (3), 1)bank trust officer Which of the following is NOT an example of a business use of Life Insurance? -and the right to vote. (c) both I & II (d) neither I or II. also known as acceptance. B) Underwriters. It has cash value that is invested into the stock market through mutual funds/securities. Adverse selection is well controlled. When will coverage begin? 2)the face amount Members are assessed to fund the corporation. All of the following statements about the settlement of a claim are true EXCEPT. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. 2)attorneys 21,000 \\ She meets the definition of total disability under Social Security. d. It does not require a duty to be owed. Premiums are not tax deductible as a business expense. AccountsreceivableJul1Jul3121,000???? Compute DVDs net cash provided by (used for) operating activities during July. The policy is a conditional contract Nonparticipating policy. d) Military personnel. (c) The number of times the coverage can be renewed is limited. -Prepays portion of face amount if diagnosed with terminal illness. Health insurance decreases your healthcare costs. What does "liquidity" refer to in a life insurance policy? C. Buy-Sell agreements are normally funded with a life insurance policy If applicant is not the insured- then insureds signature is required The face amount decreases as the amount owed on the mortgage decreases. 2. a) Agent's report How has the Aswan High Dam affected the lives of Egyptians? B. a) Consumer Privacy Act C. Risk 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. Whats the cheapest type of permanent insurance? D. Financial Experience. d) Living need rider. Insurance is designed to cover both intentional and unintentional losses. All of the following are business uses of life insurance EXCEPT A. a) To limit the insurer's liability after the 2 year waiting period Involuntary Risk Which of the following statements is NOT true concering insurable interest as it applies to life insurance? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. C. The insured may retain part of a risk through deductibles. 3)premium is collected What must exist at the time of the application? Non-Participating (stock) Life Insurance Policy. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. Costs of training a replacement b) Outline of coverage The failure to disclose known facts is what? Coverage is available in $50,000 increments up to the maximum of $400,000. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . ? b. What insurance concept is associated with the names Weiss and Fitch? 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 . According to the entire contract provision, what document must be made part of the insurance policy? 2)APS=medical records All of the following would be considered to be rebating EXCEPT 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. -the applicant must always initial the change B) A fiduciary is a producer who handles insurer funds in a trust capacity. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death? 2)explain any ratings See Answer. Newborns after how many days become covered in a child rider? b) To deter the policyowner from committing suicide \hline & \text { Jul 31 } & 19,500 3. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Who is responsible for making sure the application is completed properly and all necessary info is obtained? C) Completing pre-licensing training. a) Types of mutual companies C. A surplus lines broker deals with direct writing companies only The policy does not go into effect until the premium has been collected. Any gain in the policy's cash value is . A surplus lines broker deals with direct writing companies only Who assumes control over an insurance company's funds and management if it becomes insolvent? (c) two-income earner family. b. (a) They increase at an increasing rate. D. Gender. The cash value of availability to the policyowner don't pick binding receipt at all on test. 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. Correct: C. Unilateral contract. A Contract that binds only one party to future performance, is a (n): A. (d) Most policies have a CV that is refunded when coverage ceases. Insurance companies can charge an interest rate based on the policyowner's credit report. 2) Transferring the risk C. Medical Background What is the primary source of info used to determine insurability by the underwriting department? EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} 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. -it pays the double indemnity, 1)accident occurs, person must die within 90 days b) Cost of living rider. 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} (receive dividends & the right to vote). The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. 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. C. They can borrow higher amounts off of their policies (b) Prepare a correct income statement for October 2017. A debtor has insurable interest in the life of a lender C. Payment of premium a) Because the insured is currently not a drug user, his policy will not be affected. C. Buy-Sell agreements are normally funded with a life insurance policy Business partners have an insurable interest in each other B. this insurance is often written in connection with automobile loans. d. The total of all cost sheets completed during the month is $628,880.00. a) Material change A. To sell variable life insurance policies, an agent must receive all of the following EXCEPT The debtor does not have an insurable interest in the life of the lender. d) Performing reviews of insured's coverage. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. (2), 1)HIPPA 3)2 death benefit option II. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 10 year level term C. State Education Waiver (a) blended family. The application is the basic source of information an insurer uses in the risk selection process. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. All The statements made on the application are called ______? e. The total of costs recorded on all sales invoices for the month is$654,052.00. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. The 7 paytest is used to determine if a policy is a _______? Does T-Mobile Insurance Cover Water Damage? Is interest always gained in Universal Life Policy? \hline & \text { Jul 1 } & \begin{array}{r} 25,500, AccountspayableJul114,500???? -age 100. (a) I only (b) II only What are some of the questions asked on the application to determine the premium and risk classification of the insured? This type of life insurance is called a. whole life paid at 65 Joe, Larry, and Curly own a small business. How do premiums for yearly renewable term insurance change as an insured gets older? B. -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? Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. (b) variable life insurance Misrepresentation, Concealment and Deceit are all examples of what? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. -insured can stop paying premiums at certain age or after a period of time (a) limited-payment whole life insurance C. Social Security works exactly same as private insurance. (d) indeterminate-premium whole life. b) Fixed income The 3 categories of private insurers site of incorporation? d) Accumulations are tax deferred. insured is always the borrower & the beneficiary=lender Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. What does it mean when a policy is limited pay life? 1)physical exam All of the following characterize term life insurance, EXCEPT: Select one: a. 2)administered charge There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. still matures at age 100, -premium is paid off at one time The total of all requisitions of direct materials issued during the month is $252,230.00. C) They must contain a warning that actual results may vary. Signed waiver of premium \end{array} Appoint a solicitor as his or her representative c) Policy loans are taxable distributions. (Choose from the following options) a) A medical examination A. d) All of the above. Prepare a pie chart of on-time delivery performance for last month. (a) matured. _______ pays dividends to the stock holder. C. A surplus lines broker accepts business only from non- resident agents Predicted needs of the family after the insured's death are used in the needs approach. 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 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. a) Year only. d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. D) the minor in a juvenile policy. In order for the contract or policy to be valid or legal? 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???? * 50% is paid Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. Estate Creation B. Insurance is designed to provide protection against which of the following? Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} c) Misrepresentation A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. Term. a) Juvenile Life II. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. 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 1)Whole Life C. Application Buy-sell agreements are normally funded with a life insurance policy. D. Concealment Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? (d) Premiums increase at an increasing rate upon renewal. A conditional or binding receipt is given when an applicant does what? -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded a) The policy can be converted to term coverage. A policy summary ____________ insurer is not a type of insurer. -paying for certain time and stop. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. (c) face amount of the policy and the legal reserve. It is most appropriate when an insured needs lifetime protection. Breach of warranty The penalty is 50% of the shortfall from the required annual amount. Misappropriation or illegal withholding of the policyholder's money. B. 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. The parties in the insurance contract consist of whom? D. Breach of warranty Fraud Economics questions and answers. a) Accepted accounting principal. (c) human life value method It is a type of tort. \hline & \text { Jul 1 } & 55,000 \\ An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. -receiving dividends(when declared) cash value increases while face value remains the same. 3)defined benefit plans B) They illustrate the nonguaranteed elements of the policy. a) Premium amounts and surrender values Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. 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? 3)Increasing term adds face value. A. 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? C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. A whole life insurance policy is exchanged for a term insurance policy. 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. Most insurance policies contain a specific limit that an insurer will pay for a single claim. 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. a) A retail clerk. c) Increases annually. Why?". Address of his principal office B) The plan is funded by permanent insurance only. Cash values can be borrowed at any time c) The policy will be voided. and what two kinds? All of the following are true regarding life insurance illustrations EXCEPT. C. Funding business continuation agreements b) State attorney general Premiums are not tax deductible as a business expense 4) Joint-Life policy(business part) Insurance policy of 2 or more Which of the following statements is not correct regarding rates and premiums? What are the temporary needs? Which kind of agent enters into agreements with more than one insurer? Executive office The minimum FREE LOOK period is how many days? b) The agent's report when the applicant/owner is not the insured-3rd party D. Funding against general company financial loss. c. continuous premium whole life Question: 55. C. Hazards Whoso. ? 1) preferred-low Cash value is invested in the stock market.
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