Life Insurance Flashcards - Cram.com 1) Avoiding the risk (b) single-parent family. What will probably happen? Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? All of the following are true of key person insurance EXCEPT 4)defined contribution plans. c. continuous premium whole life D. The flexible premium. -greater potential to grow the cash value but there is no guarantee States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. -The insurer would pay the face amount of the policy minus the past due premium. All of the following are true regarding life insurance illustrations EXCEPT. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Its controller resigned in October 2017. &\begin{array}{lr|rr} The shifting of risk of loss to a larger homogeneous group is known as what? Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Which of the families below is likely to have the least need for a large life insurance policy? B. Nonadmitted What are the 3 characteristics of a Mutual Insurance Company? -the premiums are paid for a limited time only. (a) limited-payment whole life insurance (c) term insurance RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. 1) Conditional Reciept & \text{ ???? } C. Buy-Sell agreements are normally funded with a life insurance policy 6/1 Quiz: Group Life Insurance Flashcards | Quizlet All of the other statements are true. -tax free accumulation of borrowing. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. A securities license. B. Aleatory contract a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. d) Fiscal responsibility. -Can't lose value What does "liquidity" refer to in a life insurance policy? "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The correct answer is: Maggie's Piano Studio with 1 employee. Which of the following about decreasing term insurance is true? When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? A ______ will receive unfavorable tax treatment. D. The benefit is received tax free a) The policy can be converted to term coverage. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ D. Funding against general company financial loss. (d) free look provision. O c. The policyowner has the option of investing the cash value in several investment accounts. 3) Retaining the risk. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? Members are assessed to fund the corporation. &\begin{array}{lr|rr} Liquidity in life insurance refers to availability of cash to the insured through cash values. Which of the following is an example of an unfair claims settlement practice? a. mentally counting backward from 1,0001,0001,000 3)Rider expires 60,65,75. ? 2. 1) mentally incompetent persons Nature of risk O b. \hline & \text { Jul 1 } & 55,000 \\ Insurance is designed to provide protection against which of the following? (b) II only -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded b) Unilateral \end{aligned} A. when the applicant/owner is not the insured-3rd party (c) expired. a) Consumer Privacy Act A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. Concerning insurance, the definition of a fiduciary is Level-increasing face value. Which of the following is TRUE regarding assignment rights for . \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ If the corporation collects the policy benefit, then 1)Domestic Insurer It requires evidence of insurability for renewal. B. Insureds current and future income Which of the following is the basic source of information used by the company in the risk selection process? The replacing company notifies the replacement company. (Hint: Take a look at the Theory of Reasoned Action.). Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. c) An agent offers tickets to a baseball game as an inducement to buy insurance. \text { Type II } & \$ 20 & \$ 30 & \$ 40 D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Economics questions and answers. 4)annual, Everytime you have a payment due. II. (b) variable life insurance C. Consideration The benefit is subject to the exclusionary rule D) the minor in a juvenile policy. They become permanently disabled Government Relations: New Challenges and the Ongoing Erosion of What must exist at the time of the application? (b) current assumption whole life. a) No penalties, since the owner is older than 59 90-180 days. 2)no cash-value Is There An Objective Morality? IAI TV Foreign. They keep a high percentage of any interest earned on their policies A. Agents and producers must place business through an insurer with the lowest rated It is most appropriate when an insured needs lifetime protection. (c) Most policies can be converted to a permanent life insurance policy. B. Chapter 14/1: Group Health Insurance Flashcards | Quizlet When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer C. Premiums are tax deductible by the key employee 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. \end{aligned} An Applicant inaccurately representing information on the application is guilty of: A. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. Example: company that is incorporated in NJ and sells in NJ. A policy summary c) Disclosure rule A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights Tom and Nancy Boyle provide financial support for their two children. 4. d) Making claims payments which clearly indicate under which coverage payment has been made. *The insured is diagnosed with terminal & chronicle illness All of the following statements about the characteristics of Social Security are true EXCEPT A. C) They must contain a warning that actual results may vary. 5th Sunday after Epiphany Saint Barnabas | By Saint Barnabas Episcopal Correct: C. Condition contract, enforceable only under certain conditions. b) Coverage ends and the policy cannot be reinstated. 3) policy builds cash-value C. Unilateral contract The concept that the insured should not profit from an insurance transaction is called what? When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? a) Agent's report 2) form of interest sensitive life insurance(current market conditions influence the cash value) Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. 1) preferred-low Estate Creation B. (b) Most policies can be renewed without evidence of insurability. An__________ represents the insurer. Which of the following statements about a life insurance policy is (are) true? Which of the following is NOT an example of a business use of Life Insurance? b) The policy will not be affected. 4 All of the following statements about term insurance are true EXCEPT It is used to pay off the balance on the mortgage. Predicted needs of the family after the insured's death are used in the needs approach. See Answer. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? The applicants(policy owner) An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. C. Payment of premium B) They illustrate the nonguaranteed elements of the policy. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. (Choose from the following options) 2)explain any ratings Exclusions always exist, and there is a reason for each one. 10 year level term -cash value can lose value. Must have at least 32/40 question correct for positive rating. 1. (Choose from the following options) 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). When an agent collects the initial premium from the applicant, the agent should issue the applicant a. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Conditional contract means the policy holder does what? Upon policy delivery, the producer may be required to obtain any of the following EXCEPT How does having children affect the decisions that couples must make when considering a divorce? -policyowners right provision C. Medical Background To sell variable insurance what must you have? Estate conservation 1)Statement of continued good health & \text{ ???? } Correct: 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. Alex, age 26, purchased a 20- payment whole life insurance policy. a) Premium amounts and surrender values a) A retail clerk. c) Conditional 4)settlement options, 1)stand alone policy 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? This type of life insurance is called A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers A) Any distributions from MECs are taxable, including withdrawals and policy loans. (d) Premiums increase at an increasing rate upon renewal. C. Waiver c. Using the payback period, which project should Bill choose? A. What adds coverage and modifies coverage? The application is the basic source of information an insurer uses in the risk selection process. B. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. 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$1,800 over the next 5 years. A debtor has an insurable interest in the life of a lender. All of the following statements concerning coinsurance are true, EXCEPT . 1) the premium amount What is a statement in the application guaranteed true in all respects? Who represents the insured when dealing with insurance companies? Is claim still paid if there is a misstatement of age or sex? Get more out of your subscription* Access to over 100 million course-specific study resources 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same The primary purpose of buying an annuity is? 6)free-look period-$ back guaranteed. Being young and healthy means you can skip out on health insurance. 1)tax qualified plans c. It is the failure to use ordinary care. Beneficiary's age is not a suitability factor. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. What constitutes the acceptance of an offer? The following information is taken from the records of Hammond on November 30 of the current year. 3)2 Death benefits-(level/increasing) An individual applies for a life policy. a) Small employers Causes of the 2000s United States housing bubble - Wikipedia may not be altered by an agent and must clearly state that it is not part of the contract. The correct answer is: The premium decreases to zero by the end of the policy period. You cannot sell a variable policy without what? b) Hazard D. Breach of warranty Which model is the better fit for the data? 1. Insurance is an important tool to manage risks, but often unavailable to poorer households. cheating. Conviction of a felony involving moral turpitude. There are 2 parties of the contract- what are they? Yes, all T-mobile insurance plans cover water damage. c. Premiums may be raised at renewal d. Group term insurance may cover the . Prior to October 2017, the company had been profitable every month. (d) paid-up. 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. Consumer report D. Viatical settlement. Credit life Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds Be prepared to justify your answer. Correct: B. The corporation also helps detect and prevent insurer impairments. 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. c) Misrepresentation -Take it or leave it contract Term life insurance provides the largest amount of coverage for the lowest amount of premium. (d) endowment insurance, Rachel needs permanent life insurance. 25,500, AccountspayableJul114,500???? D. Represent the insured's interest Your device, make and model. 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} (b) Cash value accumulation is slow to moderate. In a car accident dealing with ADB who covers the passenger? All of the following are true of insurance EXCEPT It transfers risk. The insurance provides protection for a specified period of time. Which of the following statements is not correct regarding rates and premiums? \end{array} All of the following are true of insurance except: Which of the following is NOT true about insurance? ADD( Accidental death and dismemberment??? (d) They remain level. the application is used at the primary source of info. (d) indeterminate-premium whole life. An annuity is exchanged for another annuity. Chapter 11 - Life Insurance. (c) PV of the family's share of a deceased breadwinner's future earnings. (a) capital retention approach (b) tax-free exchange provision D. Concealment Agent Sam is using the human life value approach to assess Mary's life insurance needs. A policy summary usually includes all the listed information, and must be delivered along with a new policy. b) The agent's report Various life insurance programs for people who served in the military are called ______________? (6). 1)policy owner can increase/decrease/ or skip premium payments The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. e. The total of costs recorded on all sales invoices for the month is$654,052.00. Health insurance decreases your healthcare costs. (a) I only (b) II only The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Pro rata liability applies. Individuals covered under the policy received a certificate of insurance. There is no limitation on the number of key employee plans in force at any one time B. a) Remains level. (b) Cash value accumulation is slow to moderate. a) More active. D. Speculative Risk Which of the following is NOT an allowable 1035 exchange? b) Human life value approach (b) The face amount of the policy is paid if the insured lives to age 65. The policy is a contract of adhesion \end{aligned} C. Countersign insurance contracts Department of Defense b. All of the following statements about term insurance are trueEXCEPTa. A. 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. (c) face amount of the policy and the legal reserve. A _______ __ is the additional premium needed to get covered with high or substandard risk. 3. B) The plan is funded by permanent insurance only. 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". Endowments means policy is what(2) things? Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} b) Cost of living rider. Can term insurance be both renewable and convertible? CPI (consumer price index) without evidence. (a) I only 3)Explain any riders or exclusion C. Social Security works exactly same as private insurance. 3)they provide insurance to members. 2)the face amount D. Delivery receipt. Why?". d) Primary and secondary beneficiary designations. C. State Education Waiver -The insurance dept. ~~~\text{Advertising expense}&90,000\\ When applicant is not the insured ______________ must exist. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. The applicant's medical background is addressed in Part 2 - Medical Information. 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 What contract characteristic does this describe? It is used to help adequacy and equity in rates. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . \hline \text { Jul 1 } & \begin{array}{r} 3)low premiums. (b) face amount of the policy and the total premiums that have been paid. Misrepresentation, Concealment and Deceit are all examples of what? What are (4) characteristics of permanent insurance? cash value increases while face value remains the same. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ A conditional or binding receipt is given when an applicant does what? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . The cost of insurance protection is referred to as what? 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. Fraud Flashcards - PSI online exam Life Insurance - FreezingBlue 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? Solved All of the following statements about professional - Chegg
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