5)coverage begins c) Policy loans are taxable distributions. (c) both I & II (d) neither I or II, Diane is a single parent. A peril d) Accumulations are tax deferred. All of the following statements about universal life insurance are true EXCEPT (4), 1)monthly 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? -the insurer sets the terms of the contract and the applicant must adhere to them. All of the following are common characteristics of this coverage EXCEPT (c) PV of the family's share of a deceased breadwinner's future earnings. All of the following are true about health insurance except: d) An agent misrepresents policy benefits to convince a policyowner to replace policies. -receiving dividends(when declared) All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. What are (4) characteristics of permanent insurance? When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. Liquidity in life insurance refers to availability of cash to the insured. (a) The insurance provides protection for a temporary period of time. don't pick binding receipt at all on test. Quarterly working capital levels for your firm for the next year are included in the following table. A mutual insurer has no stock, and is owned by the policyholders. A. 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. c. It is the failure to use ordinary care. -pays an additional death benefit if the insured dies from an accident when the applicant/owner is not the insured-3rd party B. C. Waiver insured is always the borrower & the beneficiary=lender D. Agents report. What kind of penalty would the IRA owner pay? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. 3)according to the source of annuity income InventoryJul1Jul3122,000???? When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. The policy's cash value grows as the investments grow. Out of 20 yr or 30 yr which policy is less expensive? D. Financial Experience. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. -it is a type of Rider Round Tree has 100 Type I rooms and 120 Type II rooms. This is called. D. A surplus lines broker deals with admitted carriers only D. The benefit is received tax free. Correct: C. Condition contract, enforceable only under certain conditions. (b) Cash value accumulation is slow to moderate. -Take it or leave it contract Life expectancy has increased in the U.S. over the last century. The shifting of risk of loss to a larger homogeneous group is known as what? The policy is issued for one year and may be renewed annually with evidence of insurability. The insurer issues the policy and learns of his history one year later. [Solved] All of the following are true of insurance EXCEPT It transfers C. Application 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. Which of the following would provide an underwriter with information concerning an applicant's health history? Investors become more risk averse. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? (b) Most policies can be renewed without evidence of insurability. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. 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. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. a) No penalties, since the owner is older than 59 (d) annual premium and the annual policy dividend. If company pays dividends, then they are a? b) 5 years only. Candidate List of substances of very high concern for Authorisation A. Group life insurance is most often issued as guaranteed annual renewable term. 3,000, AccountsreceivableJul121,000???? Breach of warranty d. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. Whoso. \text{ ???? } Which type of risk involves the possibility of loss or gain? b. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Signed waiver of premium Most insurance policies contain a specific limit that an insurer will pay for a single claim. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ The money in a savings account & &&\textbf{ Quarter } \\ A. ($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?" 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. (a) Evidence of insurability is not required to renew the coverage. How has the Aswan High Dam affected the lives of Egyptians? b) Hazard d) The Guaranty Corporation. d) Living need rider. a. All of the following statements about term insurance are true EXCEPT. \text{Sales revenue}&&\$780,000\\ C. Concealment 4)defined contribution plans. What is the difference between renewable policy holder & Insurer? -ages 25,28,34,37,40 The insurance provides protection for a specified period of time. C. Premiums are tax deductible by the key employee An individual applies for a life policy. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? b) An agent offers to share his commission with a policyholder. B. Misrepresentation 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. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. For this amount of production, total factory overhead is estimated to be $396,000.00. considers Lloyds of London an Alien insurer (6). . 4. Accelerated Living Benefit/Death Benefit is what type of rider? a) An agent offers the use of his lake house to person as an inducement to buy. A producer wishing to appeal the final order of the commissioner would appeal to???? The policy is a contract of adhesion Arrest History. All of the following statements about ordinary life insurance are true EXCEPT. Be prepared to justify your answer. This form of life insurance has fixed premiums and the cash value is not guaranteed. 3)Alien Insurer. 1)Domestic Insurer 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? 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. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. An insured is driving her automobile and strikes a large pothole that . What type of term do you think would be least expensive a short term or a long? 1. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. Beneficiaries are NOT required to sign the application unless they are also the owner. 3) policy builds cash-value Principles of Risk Management and Insurance - Easy Notecards Tamara purchased a term insurance policy when she had high life insurance needs and limited income. a) Tax-qualified The cost of insurance protection is referred to as what? What are the 3 characteristics of a Mutual Insurance Company? D. Workers compensation. (c) two-income earner family. (a) capital retention approach 1)Level -7 pay test is used to determine If a policy is a MEC. Solved All of the following statements about professional - Chegg 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Beneficiary's age Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. Which of the following best illustrates a ~~~\text{Advertising expense}&90,000\\ It does not include breach of contract. 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. Correct: C. Unilateral contract. The face amount decreases as the amount owed on the mortgage decreases. Government Relations: New Challenges and the Ongoing Erosion of Correct: B. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. A. ______________ is defined as restoring the insured to the same financial condition as before the loss. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. (b) The face amount of the policy is paid if the insured lives to age 65. b) Fixed income When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? (b) variable life insurance Only the MIB will provide information about an applicant's medical history. Non-Participating (stock) Life Insurance Policy. (economy). Which is generally true regarding insureds who have been classified as preferred risks? How much life insurance should Sam advise . Agent Sam is using the human life value approach to assess Mary's life insurance needs. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health d) Fiscal responsibility. A debtor has insurable interest in the life of a lender 3) Increasing Term. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. Its controller resigned in October 2017. D) adding cost of living coverage. D. Department of Treasury The policyowner can add to a policy's cash value at any time subject to policy guidelines. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? D. Concealment c) 15% for early withdrawal D. Unilateral Contract (a) I only (b) II only d) The policy can be reinstated by paying back all policy loans and premiums. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Hazard (c) They decrease at a constant rate. 1. A. Their premiums are lower Credit life Since they may receive a dividend (not guaranteed), such policies are known as participating policies. 2. If there Is a risk of financial loss then there is a what? -usually mutual fund security Carl would like to purchase life insurance. A. Involuntary Risk Value-added tax - Wikipedia What adds coverage and modifies coverage? 1) Conditional Reciept (b) face amount of the policy and the total premiums that have been paid. D. Premiums paid are deductible as a business expense. The employer is the owner . A. What must exist at the time of the application? \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ A securities license. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. D. Claim History b) Fluctuates. Whole life policy. Universal Life is also known as two things what are they? D. Breach of warranty 3. Why?". Insurance producers must ensure that contracts they recommend are in the best interest of the insured. D. Aleatory contract Claim is still paid with an adjustment to the benefits. The following are all true regarding risk management, except: A. Which nonforfeiture option provides coverage for the longest period of time? \end{array} \\ D. They can decide when to pay their monthly premiums. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. Estimated direct labor costs for next year are$440,000.00. (c) term insurance Use the indirect method. An agent and an applicant for a life insurance policy fill out and sign the application. All The statements made on the application are called ______? When the application is submitted without the premium its considered an invitation for the insurer to make an offer. ____________ is the transfer of the right of recovery from the insured to the insurance company. C. The death benefit paid to the beneficiary How do premiums for yearly renewable term insurance change as an insured gets older? 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. (b) Prepare a correct income statement for October 2017. A) loss reserves 2. All of the following are characteristics of group life insurance EXCEPT. 3) Equity-Index annuity. Being young and healthy means you can skip out on health insurance. The correct answer is: The premium decreases to zero by the end of the policy period. All of the following statements are true of liability insurance, EXCEPT A life insurance policy is exchanged for an annuity. If someone dies within the Grace period, what happens? -policyowners right provision After Alex has made 20 premium payments, his life insurance policy is considered 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. Only one party is giving a legally enforceable promise- A one-sided contract is what? -guaranteed/fixed/level payment, -Immediate "annuitization phase" \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ B. B. Aleatory contract (Choose from the following options) Which of the following about the use of ordinary life insurance is true? 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. B. Correct: A.A peril. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. Which of the following is a physical hazard? D. Premiums are tax deductible as a business expense, B. B. Why do most states have a waiting period for couples applying for marriage licenses? (2), The current market will influence the cash value C. It's a decreasing term insurance. What is NOT invested in the stock market but pays you interest? Flashcards - WA Common Law Practice Exam - FreezingBlue B. In a car accident dealing with ADB who covers the passenger? -tax free accumulation of borrowing. a) Because the insured is currently not a drug user, his policy will not be affected. Renew policy holder has an option- THE INSURER DOES NOT. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. C. The insured may retain part of a risk through deductibles. 1) coverage is permanent \hline \text { Jul 1 } & 22,000 \\ When a policy is non-contributory how much is paid? It is most appropriate when an insured needs lifetime protection. The companys president is concerned about the accuracy of the income statement. Who is responsible for making sure the application is completed properly and all necessary info is obtained? Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} A debtor has an insurable interest in the life of a lender. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Conditional contract means the policy holder does what? The premium is level and guaranteed not to increase. There is no limitation on the number of key employee plans in force at any one time B. B. 1)cont. Payor benefit/Clause is always a _________. 2)Decreasing term(premium is low) declining face value 3) type of plan they applied for. A. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? (c) face amount of the policy and the legal reserve. 4 All of the following statements about term insurance are true EXCEPT 1) preferred-low d) Paid-up option. IN WHITE RAIMENT. Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. 2)the face amount Everything else equal, how would the factor below affect the market value of a stock? B. IRS has no jurisdiction b) Universal Life B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated.