all of the following are true of insurance except all of the following are true of insurance except

True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles ? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). 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. 5)Explain when coverage begins 1. The policy is issued for one year and may be renewed annually with evidence of insurability. What are the temporary needs? Misrepresentation, Concealment and Deceit are all examples of what? Rates. Universal Life is also known as two things what are they? B. B. Misrepresentation The premium is level and guaranteed not to increase. Funding against financial loss caused by the death of a key employee Waive the premium if the INSURED becomes totally disabled. All of the following are true of insurance except: a) protects against uncertainty b)means sharing of loss c)eliminates risk d)transfers risk Answer: Eliminates risk Question: Which of the following is NOT true about insurance? a) Aleatory c) Variable Premium Most agents try to collect the initial premium for submission with the application. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Flashcards - WA Common Law Practice Exam - FreezingBlue 2) premiums do not change Nonparticipating policy. c) Conditional O c. The policyowner has the option of investing the cash value in several investment accounts. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT The applicants(policy owner) Flashcards - PSI online exam Life Insurance - FreezingBlue An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? -greater potential to grow the cash value but there is no guarantee C. Whole life 3) Increasing Term. \textbf{EMPIRE COMPANY}\\ Can term insurance be both renewable and convertible? Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. Various life insurance programs for people who served in the military are called ______________? Group Life Insurance Flashcards | Chegg.com Now Tamara can afford whole life insurance. All of the following statements about ordinary life insurance are true EXCEPT. b) Coverage ends and the policy cannot be reinstated. 3)Family Policy(Limited but all fam members paid) A FINRA registration. A debtor has insurable interest in the life of a lender You cannot sell a variable policy without what? Steven prints a pamphlet to advertise his life insurance business. Candidate List of substances of very high concern for Authorisation 2)administered charge Correct: C. Condition contract, enforceable only under certain conditions. \hline && \text { Jul 1 } & 65,000 \\ A. B. 4. Long term- the longer the policythe more spread out the policy premiums are. Applicant pays premium to make agreement. Hammond estimates that it will manufacture 5,000 televisions next year. How much life insurance should Sam advise . A mutual insurer has no stock, and is owned by the policyholders. d) The policy can be reinstated by paying back all policy loans and premiums. A. Who gets $$money when the policy holder dies? Insurance is designed to provide protection against which of the following? a) Small employers The death benefit varies according to investment experience. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? b) 10% for early withdrawal 1)temporary A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. (4), 1)monthly Solved All of the following statements about professional - Chegg -the applicant must always initial the change An Insurance Broker is responsible for what? (3), WHat is the difference between universal and whole life policies? 1)physical exam a) Executive offer of the replacing company c) National Association of Insurance Commissioners and is NOT a party to the contract. Renew policy holder has an option- THE INSURER DOES NOT. What constitutes the acceptance of an offer? 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? 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. 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. Which of the following is an example of liquidity in a life insurance contract? a) More active. Only one party is giving a legally enforceable promise- A one-sided contract is what? (a) Interest is credited monthly to a policy's cash value. (c) Most policies can be converted to a permanent life insurance policy. 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. A. Coverage is available in $50,000 increments up to the maximum of $400,000. ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" B. A. I. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. B) The plan is funded by permanent insurance only. compulsion? insured is always the borrower & the beneficiary=lender Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? (2), 1)HIPPA A. C. Waiver of Estoppel D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers insurable interest must exist. C. A husband or wife has an insurable interest in their spouse 4)settlement options, 1)stand alone policy Term life insurance provides pure death protection. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. 2) form of interest sensitive life insurance(current market conditions influence the cash value) An insured becomes disabled at age 22 and can no longer work. -receiving dividends(when declared) a) Indeterminate Premium An Applicant inaccurately representing information on the application is guilty of: A. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. 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. c) 10 years. When an applicant pays the initial premium the agent will give them a what? c. It is the failure to use ordinary care. Correct: C. Concealment, A. The policy's cash value grows as the investments grow. Cash values can be borrowed at any time Involuntary Risk -If the insured dies, the policy payed out the PRINCIPAL SUM B. \end{array} Where does group-life insurance come from? $ cant exceed indebtness. All of the following are business uses of life insurance EXCEPT (Choose from the following options) (b) Prepare a correct income statement for October 2017. An agent has authority to do all of the following, except: A. Countersign insurance contracts All of the following statements concerning coinsurance are true, EXCEPT . (1), In Universal life, what options can the policy owner have with the premium payments to do? Any gain in the policy's cash value is . All of the following statements regarding contracts of indemnity are true EXCEPT a. 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. What contract characteristic does this describe? 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 . 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. What is the difference between renewable policy holder & Insurer? 2)collateral assignment-some or only one right assigned. c) To protect the policyowner C. State Education Waiver ________________ are the person who receives benefits payable upon death. 1) a policyholder votes on the Board of Directors Who might receive dividends from a mutual insurer? (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. (b) single-parent family. \text{Sales revenue}&&\$780,000\\ (a) universal life insurance. -and the right to vote. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). a) Withdrawals are not taxable. -insured can stop paying premiums at certain age or after a period of time The total of all requisitions of direct materials issued during the month is $252,230.00. a) Universal life Level-increasing face value. Chapter 14/1: Group Health Insurance Flashcards | Quizlet It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. B. D. Concealment B. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. C. It's a decreasing term insurance. An annuity is exchanged for another annuity. A. signed waiver of premium Appoint a solicitor as his or her representative Statement of good health D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. All of the following are common characteristics of this coverage EXCEPT Which of the following is NOT an allowable 1035 exchange? B. &\begin{array}{cr|} \hline (\$ 000) & 1 & 2 & 3 & 4 \\ The agent D. The benefit is received tax free ~~~\text{Depreciation on factory equipment}&31,000\\ The Terrorism Risk Insurance Program is administered by which of the following Federal entities? c) Copy of the original application A mutual insurance company does not have what? (c) face amount of the policy and the legal reserve. Breach of warranty C. Waiver -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded The employer is the owner . Unit 27 Flashcards by Lauren Pulido | Brainscape Pertaining to insurance, what is the definition of a fiduciary responsibility? The issuance of a _________ is the result of the acceptance of an offer. Why do most states have a waiting period for couples applying for marriage licenses? 2) Transferring the risk B. Exclusions always exist, and there is a reason for each one. Arrest History. -has cash value invested in the stock market d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. 2)attorneys Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 3)increase the length of coverage All The statements made on the application are called ______? Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Address of his principal office Non-Participating (stock) Life Insurance Policy. (a) I only (b) II only An Insurance broker is responsible for what? By William Lb Qtjetjx, Author of . b) The agent's report ____________ is the transfer of the right of recovery from the insured to the insurance company. (a) They increase at an increasing rate. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} What else must he include? Chapter 4.1 : Life Insurance Flashcards | Chegg.com 4)Explain the policy and its provisions d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. Predicted needs of the family after the insured's death An insured is driving her automobile and strikes a large pothole that . 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. Accidental Death Benefit IRS classification of a policy that is overfunded? \\ C) An insurance contract must contain a copy of the original application. A. C. Funding business continuation agreements All of the following are true of key person insurance EXCEPT ) The key employee is the insured. 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. C. Insured's annual expenses Individuals covered under the policy received a certificate of insurance. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. The following are all true regarding risk management, except: A. a) Year only. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? 2)FCRA(fair credit reporting act) checks MIB report. Reinsurance has 2 types of policys, what are they? However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. The policyowner has a variety of options for investment of the cash value. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ Which of the following statements about a life insurance policy is (are) true? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. C. Social Security works exactly same as private insurance. For this amount of production, total factory overhead is estimated to be $396,000.00. Their premiums are lower Cash value is the same as ___________ when the policy matures. c) Conditional B. Beneficiarys age Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. -paying for certain time and stop. (2), The current market will influence the cash value All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. Statements in the application that are guaranteed true but later found to be false may result in what? b. \hline \text { Jul 1 } & \begin{array}{r} (a) present value of future benefits and the present value of future premiums. Rates Type I rooms do not have wireless Internet access and are not available for the Business rental class. 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. The policyowner can add to a policy's cash value at any time subject to policy guidelines. A. b) Larger. B. Nonadmitted What are some of the questions asked on the application to determine the premium and risk classification of the insured? Height Weight and Health conditions. 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". 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. D. The policy is a bilateral contract D. Solicit applications on insurer's behalf Exclusion Categories Foreign. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? b. ? L4. Life Insurance Policy Provisions Options and Riders The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. (d) neither I nor II. d) Decreases annually. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. Which of the following would provide an underwriter with information concerning an applicant's health history? When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? Chapter 3 part 1 Flashcards | Quizlet c) Extended term See Page 1. An agent and an applicant for a life insurance policy fill out and sign the application. All of the following are required signatures on a life insurance application EXCEPT. \hline & \text { Jul 31 } & 58,000 The NAAR for a life insurance policy is the difference between the (c) two-income earner family. Which method makes the most sense for her to employ? A. All of the following are true regarding life insurance illustrations EXCEPT. Solved All of the following are true for indemnity insurance | Chegg.com D. The flexible premium. d) Contingent. -Prepays portion of face amount if diagnosed with terminal illness. B. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. (b) II only Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. If the corporation collects the policy benefit, then b) Unilateral A producer wishing to appeal the final order of the commissioner would appeal to???? EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} Whole life policy. a) The policyholders or stockowners of the company II. Correct: C. Consideration. 4)defined contribution plans. All of the following are true of key person insurance EXCEPT b) Adjustable life Yes, all T-mobile insurance plans cover water damage. All of the following would be considered to be rebating EXCEPT Beneficiary's age Are insurance company underwriters allowed to discriminate? 3)substandard-highest, 6 factors that are complete for policy 2 be paid? AccountsreceivableJul1Jul3121,000???? 3)Explain any riders or exclusion c) Accelerated benefit rider. C) common stock 4. What characteristic must an annuity have if it is used to accumulate funds in an IRA? -Voting. a) Juvenile Life the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. 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 . The total of all requisitions of indirect materials issued during the month is$20,170.00. Pro rata liability applies. Be prepared to justify your answer. C. Premiums are determined by age sex and occupation of each individuals certificate holder. 2)explain any ratings d) Blackout approach. A contract between insurer and policy holder. b) Universal Life The failure to disclose known facts is what? -immediately considered fully paid up a) A medical examination Which of the following documents must be provided to the policyowner or applicant during policy replacement? -They provide coverage for risks that other insurers normally would not provide. All of the following statements about term insurance are trueEXCEPTa. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent.