4. A securities license. b) Reduced paid-up An insurance consultant CANNOT be which type of persons? 1) insured gets higher amount D) the minor in a juvenile policy. -policy holder adheres to it C. Hazards The penalty is 50% of the shortfall from the required annual amount. Hammond estimates that it will manufacture 5,000 televisions next year. The failure to disclose known facts is what? d) The Medical Information Bureau. B. Beneficiarys age 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. The insurer issues the policy and learns of his history one year later. ? All of the following are common characteristics of this coverage EXCEPT (a) I only ($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?" In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? 2) premiums do not change An individual applies for a life policy. Correct: B. Terms that apply to the insurer not the applicant. Fraud A persons assets & liabilities at their time of death. Predicted needs of the family after the insured's death are used in the needs approach. _______ pays dividends to the stock holder. All of the following statements about the settlement of a claim are true EXCEPT. An agent has authority to do all of the following, except: A. Countersign insurance contracts Address of his principal office 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. b. D) Insurance covers intentional losses as well as unintentional. B. D) An agent's report and inspection report provides personal information. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. A. Conditional contract means the policy holder does what? Insurance transfers risk but it does not__________ risk. A corporation is the owner and beneficiary of the key person life policy. B. Which of the following about yearly renewable term insurance is true? Which of the following about the use of ordinary life insurance is true? C. Consideration The shifting of risk of loss to a larger homogeneous group is known as what? d) Graded Premium. a) Remains level. Premiums are not tax deductible as a business expense. If the insurance carried is less than required, the insurance may not cover the whole loss. d) 15 years. An insured becomes disabled at age 22 and can no longer work. Exclusion Categories \end{array} 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. 3) Retaining the risk. C) purchasing family term insurance. Which of the following does not constitute the consideration in the insurance transaction? A mutual insurer has no stock, and is owned by the policyholders. C. Whole life \end{array} There is no limitation on the number of key employee plans in force at any one time B. a. whole life paid at 65 B. 5)Explain when coverage begins Correct: C. Unilateral contract. Social Security is designed to provide a base of economic security B. (2), The current market will influence the cash value \end{array} B. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. B) Underwriters. Estimated direct labor costs for next year are$440,000.00. 1)policy owner can increase/decrease/ or skip premium payments (d) They remain level. ~~~\text{Advertising expense}&90,000\\ It requires evidence of insurability for renewal. Cash value is the same as ___________ when the policy matures. The issuance of a binder is the result of the ___________________ of an offer. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. All of the following statements are true regarding mortgage protection insurance EXCEPT. 25,500, AccountspayableJul114,500???? A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. A mutual insurance company does not have what? On DUE DATE. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? (b) Face amount decreases during the policy period, but premiums remain level. The companys president is concerned about the accuracy of the income statement. B. (c) face amount of the policy and the legal reserve. 3)2 Death benefits-(level/increasing) also known as acceptance. 2)interest sensitive Who is not a party to the contract and receives the benefits when the insured dies? -provides income for retirement Something of value is a __________________. D. Claim History The primary purpose of buying an annuity is? See Page 1. Domestic Insurer 4. 2)explain any ratings Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. (d) annual premium and the annual policy dividend. 2)Decreasing Term A false statement in the application for insurance is_____________. d. It does not require a duty to be owed. B. Hospital bills of the key employee Pure Risk. Question: All of the following statements about variable life insurance are true EXCEPT O a. A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? (c) expired. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Term life insurance provides pure death protection. 3. The person who receives the benefit when insured dies. Health insurance decreases your healthcare costs. Suitability B. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? Breach of warranty The County is administered by a five-member Board of Supervisors who are elected for four-year terms The following are all true regarding risk management, except: A. Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. In this case, the applicant will most likely need to fill out a Statement of Good Health. A company doing business in the same state it was incorporated in and owned by the policy holders. & &&\textbf{ Quarter } \\ All renewable term policies are accepted without__________ and only with_____ collected. Which of the following best describes a surplus lines broker? -insured can stop paying premiums at certain age or after a period of time Predicted needs of the family after the insured's death (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. C) An insurance contract must contain a copy of the original application. 14,500 \\ d) 50% tax on the amount not distributed as required. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . d) Performing reviews of insured's coverage. Correct: C. Consideration. 1) coverage is permanent See Answer. The Waiver of Cost of Insurance rider is found in what type of insurance? Accidental Death Benefit 3)they provide insurance to members. -policyowners right provision 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. -age 100. Joe, Larry, and Curly own a small business. D. A surplus lines broker deals with admitted carriers only 3)MIB=records of all previous insurances they had. A. Who represents the insured when dealing with insurance companies? (b) face amount of the policy and the total premiums that have been paid. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. What adds coverage and modifies coverage? & \text{ ???? } 1. 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. C. Independent rating services evaluate and rate the financial ability of insurance companies All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. 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? 3)Consideration A. The applicant accepts the invitation by paying the ___________. B. Twisting All of the following information about a customer must be used in determining annuity suitability EXCEPT A. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? D. Funding against general company financial loss. c) Whole Life Which of the following best illustrates a -Follows all conditions of contract & pays premium, -insurer says how policy works d) Limited pay. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. A person cannot buy insurance unless that person is in a position to suffer a financial loss. Endowments means policy is what(2) things? 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. &\begin{array}{lccc} After everything is signed & premium is collected What does the agent give to the policy holder? b. Chapter 11 - Life Insurance. What are two reasons that people deposit money in banks? -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? d. falsely believing that a spouse has been Which term describes the probability of a loss? &\begin{array}{lr|lr} d. An underwriter will consider each of the following factors when evaluating a risk, except: A. According to the entire contract provision, what document must be made part of the insurance policy? \text{Less: Operating expenses}\\ Prepare a pie chart of on-time delivery performance for last month. Pure risk All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. (c) both I & II (d) neither I or II. \textbf{For the Month Ended October 31, 2017}\\ Buy-sell agreements are normally funded with a life insurance policy. C. Unilateral contract Accelerated Living Benefit/Accelerated Death Benefit? \end{array} 2)Family Income(decreasing term-policy) The policyowner has a variety of options for investment of the cash value. What are the 3 characteristics of a Mutual Insurance Company? &\text { Accumulated depr.-equipment }\\ 1)cont. Which of the following statements about universal life insurance is true? C. group credit life insurance does not build cash values. 2)can be sold as a rider to a whole-life policy. What kind of penalty would the IRA owner pay? Insurance is an important tool to manage risks, but often unavailable to poorer households. 3)according to the source of annuity income C) common stock 4. . All of the following would be considered to be rebating EXCEPT 6)free-look period-$ back guaranteed. If a change in the application is necessary what is required? WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. \hline && \text { Jul 1 } & 65,000 \\ Group life insurance is most often issued as guaranteed annual renewable term. B. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? A surplus lines broker deals with direct writing companies only 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. 2. A. Occupation -pays an additional death benefit if the insured dies from an accident I. Legal Purpose 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution Tax-qualified annuities are subject to IRA maximum contribution limits. Consumer report How much life insurance should Sam advise . A. II. ____________ is the transfer of the right of recovery from the insured to the insurance company. C. Application \end{array} Correct: A Insurance . All of the following are characteristics of group life insurance EXCEPT. C. Medical Background Costs of training a replacement (Choose from the following options) Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. A life insurance license. Which of the following about decreasing term insurance is true? 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. &\begin{array}{r|lr} Most policies can be renewed for additional periods without evidence of insurability. The policyowner can add to a policy's cash value at any time subject to policy guidelines. B. Avoidance What is the term for a cause of loss, such as the theft of a car? d) The insurer will sue the insured for committing fraud. A contract between insurer and policy holder. 2) Transferring the risk 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. All The statements made on the application are called ______? There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Economics questions and answers. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. a) Universal life B. A. D. The benefit is received tax free and what two kinds? B) Fiduciary refers to a position of trust. C. Concealment Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? \end{aligned} (6). Which of the following about a VUL insurance policy is (are) true? (3), WHat is the difference between universal and whole life policies? C. Payment of premium Which of the following is NOT an allowable 1035 exchange? Their premiums are lower d) Buyer's Guide. -Take it or leave it contract b) 5 years only. AKA-payout phase. -If the insured dies, the policy payed out the PRINCIPAL SUM O b. B. (b) tax-free exchange provision There is no limitation on the number of key employee plans in force at any one time. b) Adjustable life The storage of flammables in a fireproof container. The parties in the insurance contract consist of whom? 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same Insurance is designed to cover both intentional and unintentional losses. b. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past II. Get more out of your subscription* Access to over 100 million course-specific study resources D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. insurable interest must exist. Jul3125,500\begin{aligned} What else must he include? C. Domestic A. ~~~\text{Indirect labor cost}&28,000\\ (a) capital retention approach C. Waiver of Estoppel When a policy is contributory how much is paid? 4) Joint-Life policy(business part) Insurance policy of 2 or more D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. Involuntary Risk 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 -cash value can lose value. d) The Guaranty Corporation. c) Counselor (2), 1)HIPPA D. Effect of inflation on income over time. d) Fair Credit Reporting Act. The concept that the insured should not profit from an insurance transaction is called what? Limited-Pay Life & Single-Premium Policies? The 4 characteristics of a universal life policy are? B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. Which of the following statements about endowment policies is true? (b) current assumption whole life. (b) level-premium method 3) type of plan they applied for. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. The purpose of an estate clearance fund is to pay all of the following EXCEPT. 5)Survivorship Life Policy (policy holder pays themselves). B. Life insurance proceeds B. Aleatory contract \hline \text { Jul 1 } & 5,500 &&\\ When an agent collects the initial premium from the applicant, the agent should issue the applicant a. D) Obtaining a bachelor's degree. C. The benefit is received as taxable income 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 . -7 pay test is used to determine If a policy is a MEC. 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. *The insured is diagnosed with terminal & chronicle illness -sex doesn't determine eligibility. ? - 20 pay life-premiums paid for 20 years and paid up at 65 \end{aligned} 1) mentally incompetent persons D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 17,000, InventoryJul122,000???? All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. The 7 paytest is used to determine if a policy is a _______? 2)quarterly CashJul1Jul315,500???? Statement of good health c) Denying coverage after a reasonable investigation has been conducted b) Index used by stock companies D) Obtaining a bachelor's degree. the application is used at the primary source of info. 1. b) Fixed income If there Is a risk of financial loss then there is a what? A key person insurance policy can pay for which of the following? Which of the following statements about limited-payment life insurance is true? 1) Competent Parties They keep a high percentage of any interest earned on their policies Type I rooms do not have wireless Internet access and are not available for the Business rental class. C. They can borrow higher amounts off of their policies All of the following statements about term insurance are trueEXCEPTa. C. Premiums are determined by age sex and occupation of each individuals certificate holder. ~~~\text{Raw materials purchases}&\$264,000\\ Who assumes control over an insurance company's funds and management if it becomes insolvent? The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. 1) preferred-low A conditional or binding receipt is given when an applicant does what? b) Unilateral ~~~\text{Rent on factory facilities}&60,000\\ Carl would like to purchase life insurance. Any gain in the policy's cash value is . d) Decreases annually. -cash value options I. 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. Whats the cheapest type of permanent insurance? It is the specific cause of loss. What happens when a policy is surrendered for its cash value? 2)not payable in conjunction. 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. Which of the following is the basis for a claim against an insurance policy? (a) Interest is credited monthly to a policy's cash value. Term life insurance provides the largest amount of coverage for the lowest amount of premium. What does "liquidity" refer to in a life insurance policy? Executive office - Limited Pay Life B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. Various life insurance programs for people who served in the military are called ______________? (a) Evidence of insurability is not required to renew the coverage. -A Mec will receive unfavorable tax treatment Why?". Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). -immediately considered fully paid up Only one party is giving a legally enforceable promise- A one-sided contract is what? b. What are the temporary needs? Be prepared to justify your answer. 90-180 days. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. M327. c) Smaller. 1)physical exam Example: company that is incorporated in NJ and sells in NJ. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. e. The total of costs recorded on all sales invoices for the month is$654,052.00. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. (c) both I & II (d) neither I nor II. -the applicant must always initial the change -Prepays portion of face amount if diagnosed with terminal illness. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. \hline (economy). \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ What are the (5) Factors considered with combination policies Who and What are they? d) Paid-up option. What is NOT invested in the stock market but pays you interest?

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