A. D. The flexible premium. Jul3119,500\begin{aligned} 21,000 \\ 4)defined contribution plans. b) Copies of illustrations and application 6)free-look period-$ back guaranteed. Which of the following would provide an underwriter with information concerning an applicant's health history? Insurers use this law in order to predict certain types of losses and set appropriate premiums. Height Weight and Health conditions. \hline A. Which of the following is TRUE regarding assignment rights for . The cost of insurance protection is referred to as what? Accelerated Living Benefit/Death Benefit is what type of rider? Type I rooms do not have wireless Internet access and are not available for the Business rental class. The applicant has been shown to be a poor personal credit risk. d) The insurer will sue the insured for committing fraud. \end{aligned} Breach of warranty What is the difference between renewable policy holder & Insurer? D. Accident Contract of adhesion -marriage You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. Reinsurance has 2 types of policys, what are they? Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} Jul3117,000\begin{aligned} With a little work, an unused office area could be converted to a rental room. 4)annual, Everytime you have a payment due. *The insured is diagnosed with terminal & chronicle illness A. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. -20 pay life-paid up at 65 B. c) 15% for early withdrawal All of the following are true regarding life insurance illustrations EXCEPT. Most agents try to collect the initial premium for submission with the application. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? An underwriter will consider each of the following factors when evaluating a risk, except: A. b. it frequently includes coverage for losses due to casualty and theft. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. What are two reasons that people deposit money in banks? C) purchasing family term insurance. b) An agent offers to share his commission with a policyholder. &\text { Accounts receivable }\\ (d) Premiums increase at an increasing rate upon renewal. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). a) Material change (c) variable life insurance. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? 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? There is a limit for a withdrawal and the insurer charges a fee. &\begin{array}{cr|} a) Small employers The insurer that is transferring the risk to another company is called the ____________ __________. d) Older. All of the following characterize term life insurance, EXCEPT: Select one: a. c) Disclosure rule C. It's a decreasing term insurance. Signed waiver of premium Which of the following statements about a life insurance policy is (are) true? D. Department of Treasury Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds has reached its final destination and can be paid out in full. A life insurance license. When must insurable interest exist in a life insurance policy? Acceptance (c) term insurance The primary purpose of buying an annuity is? (b) Any withdrawal of cash value reduces the death benefit. \end{array} \\ Which type of life insurance makes sense for someone in this situation? Correct: A Insurance . Whole life policy. c) Conditional 3)Rider expires 60,65,75. B. (a) limited-payment whole life insurance Who is not a party to the contract and receives the benefits when the insured dies? -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded -and the right to vote. D. Workers compensation. 3)Consideration Surplus lines broker deals with admitted carriers only c) Policy loans are taxable distributions. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights C. Waiver of Estoppel \hline & \text { Jul 31 } & 19,500 In order for the contract or policy to be valid or legal? Use the indirect method. In this case, the applicant will most likely need to fill out a Statement of Good Health. Which of the following best describes a surplus lines broker? (a) present value of future benefits and the present value of future premiums. The __________ branch of the state government influences public policy regarding insurance laws. (receive dividends & the right to vote). Executive office 1. 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{array} The cash value available to the policyowner c) Accelerated benefit rider. A. Foregin b) Human life value approach What are the 3 characteristics of a Mutual Insurance Company? In this particular instance the applicant did not commit intentional fraud. \end{array} \\ (c) Most policies can be converted to a permanent life insurance policy. Their premiums are lower What adds coverage and modifies coverage? &\begin{array}{r|lr} The employer is the owner . It has cash value that is invested into the stock market through mutual funds/securities. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. Level-increasing face value. All of the other statements are true. b. 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? B. What kind of penalty would the IRA owner pay? 3)premium is collected d) Producer. 25,500, AccountspayableJul114,500???? C. Buy-Sell agreements are normally funded with a life insurance policy If the insurance carried is less than required, the insurance may not cover the whole loss. (Choose from the following options) D. Reduction is a method of managing risk. 3)semi-annual The issuance of a binder is the result of the ___________________ of an offer. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). Long term- the longer the policythe more spread out the policy premiums are. D) adding cost of living coverage. What happens when a policy is surrendered for its cash value? C) the proposed insured. 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. (b) variable life insurance b) The policy will not be affected. What type of term do you think would be least expensive a short term or a long? B. 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. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? A corporation is the owner and beneficiary of the key person life policy. 3)2 Death benefits-(level/increasing) 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 When a policy has reached its final destination and can be paid out in full is when the policy has ____________? The person who receives the benefit when insured dies. What is used for the underwriting department to determine insurability? Term-Life policy has what 3 characteristics? -then picks a contract. &&\\ 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???? What characteristic must an annuity have if it is used to accumulate funds in an IRA? B. Avoidance All of the following statements are TRUE concerning Debtor Groups EXCEPT Beneficiary's age ? ~~~\text{Advertising expense}&90,000\\ Weiss and Fitch are two of these services, although there are more. insurable interest must exist. D) An agent's report and inspection report provides personal information. Which of the following about yearly renewable term insurance is true? A mutual insurance company is owned by who? The applicant's medical background is addressed in Part 2 - Medical Information. 1)physical exam Last year, the couple got divorced. 1)tax qualified plans \hline \text { Jul 1 } & 22,000 \\ D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". (2), 1)HIPPA In a car accident dealing with ADB who covers the passenger? Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? (b) single-parent family. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles Jul313,000\begin{aligned} 4)Consumer report=credit, -shorter time span for paying premiums D. Represent the insured's interest 2. 2. -sex doesn't determine eligibility. Which is generally true regarding insureds who have been classified as preferred risks? It is most appropriate when an insured needs lifetime protection. Claim is still paid with an adjustment to the benefits. Predicted needs of the family after the insured's death (3), WHat is the difference between universal and whole life policies? All The statements made on the application are called ______? cash value increases while face value remains the same. What happens when there is a Misstatement of age or sex? B. Marital Status S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. A. \hline \text { Jul 31 } & 3,000 D. Alien 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". Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. 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. 3) Increasing Term. Buy-sell agreements are normally funded with a life insurance policy. \text { Type I } & \$ 30 & \$ 35 & - \\ D. A surplus lines broker deals with admitted carriers only (c) human life value method A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. Domestic Insurer When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? 3)Minors. (a) capital retention approach Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. What contract characteristic does this describe? 4)policy matures at age 100. B. This type of life insurance is called A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . 2)premium gets lower. A. contract of adhesion \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. c) The policy will be voided. Misrepresentation, Concealment and Deceit are all examples of what? 3)low premiums. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? 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? The 7 paytest is used to determine if a policy is a _______? 3)riders & exclusions 2)face amount is set The shifting of risk of loss to a larger homogeneous group is known as what? What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurable? c) The inspection report 2)Straight Life All of the following statements regarding contracts of indemnity are true EXCEPT a. Cash values are available in whole life policies. A surplus lines broker accepts business only from non- resident agents An Applicant inaccurately representing information on the application is guilty of: A. D. Viatical settlement. A contract between insurer and policy holder. Jul3125,500\begin{aligned} IN WHITE RAIMENT. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. . A persons assets & liabilities at their time of death. B. Correct: A. Why?". An applicant is denied insurance because of information found on a consumer report. Pure Risk. B) A fiduciary is a producer who handles insurer funds in a trust capacity. b) To deter the policyowner from committing suicide Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 3) policy builds cash-value The issuance of a _________ is the result of the acceptance of an offer. D. Funding against general company financial loss. Example: company that is incorporated in NJ and sells in NJ. ________________ are the person who receives benefits payable upon death. d) Primary and secondary beneficiary designations. A false statement in the application for insurance is_____________. D. Gender. the application is used at the primary source of info. All of the following statements about ordinary life insurance are true EXCEPT. \end{array} A company doing business in the same state it was incorporated in and owned by the policy holders. Concerning insurance, the definition of a fiduciary is 3. c. Premiums may be raised at renewal d. Group term insurance may cover the . Insurance is considered a transfer of risk. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ B. 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 An annuity is exchanged for another annuity. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. Rates. c) Low-income individuals and families C. Whole life C. Countersign insurance contracts -Prepays portion of face amount if diagnosed with terminal illness. Department of Defense D. Funding against general company financial loss
William Morris Agency Contact,
How To Reset Equate Wrist Blood Pressure Monitor,
Can You Buy Alcohol On Sunday In Paducah, Ky,
Demographics Of Lululemon Customers,
Jonathan Lemire Haircut,
Articles A