b. If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. ~~~\text{Rent on factory facilities}&60,000\\ D. Unilateral Contract (a) blended family. C. The death benefit paid to the beneficiary What type of term do you think would be least expensive a short term or a long? \end{array} ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 1) cash value earns interest B) The plan is funded by permanent insurance only. 1. d) Policy dividends. Which of the following best illustrates a \end{aligned} &\begin{array}{l|lr} After insurer makes an offer, what must the applicant do? Breach of warranty ______________ is defined as restoring the insured to the same financial condition as before the loss. \end{array} Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. & \text{ ???? } Foreign. \text { Type II } & \$ 20 & \$ 30 & \$ 40 This is called. Which of the following is usually true of a participating life insurance policy? 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. A producer wishing to appeal the final order of the commissioner would appeal to???? Agent Sam is using the human life value approach to assess Mary's life insurance needs. a) Premium amounts and surrender values When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? Who would be eligible to obtain SGLI? (a) I only 3)mortality charge. Cash values can be borrowed at any time \hline & \text { Jul 1 } & 55,000 \\ Which of the following is NOT a fraudulent and intentional deception of the truth? D) Claims result from losses by a peril insured against in an insurance policy. What are the permanent working capital needs of your company? 2)Decreasing term(premium is low) declining face value Mutual life policy. c) Smaller. C. The insured may retain part of a risk through deductibles. A __________ represents the insured. (Choose from the following options) Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). 1)temporary c) Comparisons with similar policies Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. Daycare is considered to be among these expenses. -But pays you interest, 1)Fixed annuity -usually mutual fund security In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. What (5) Factors for GIO & GIB. whose covered? and what two kinds? Correct: A. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? See Answer. 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. D. Effect of inflation on income over time. 10 year level term What are (4) characteristics of permanent insurance? b) The agent's report (must exist at the time of application). (c) both I & II (d) neither I or II. On DUE DATE. The 7 paytest is used to determine if a policy is a _______? (b) Cash value accumulation is slow to moderate. Get more out of your subscription* Access to over 100 million course-specific study resources -and the right to vote. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. c) Variable Premium For example, a claim will be paid only is there has been a covered loss. Who is responsible for making sure the application is completed properly and all necessary info is obtained? What insurance concept is associated with the names Weiss and Fitch? 2)collateral assignment-some or only one right assigned. (c) They decrease at a constant rate. B) They illustrate the nonguaranteed elements of the policy. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. 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. InventoryJul1Jul3122,000???? 14,500 \\ Individuals covered under the policy received a certificate of insurance. 4)settlement options, 1)stand alone policy Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 90-180 days. 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? Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? a) Material change Insurers use this law in order to predict certain types of losses and set appropriate premiums. Which of the following types of insurance policies would perform the function of cash accumulation? C. Payment of premium Members are assessed to fund the corporation. B. Insurance is designed to cover both intentional and unintentional losses. 3)defined benefit plans C. Solicit applications on the insurer's behalf &\text { Cash }\\ (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. Health insurance decreases your healthcare costs. C. Application B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. 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. d) Living need rider. \hline \text { Jul 31 } & 3,000 There is no limitation on the number of key employee plans in force at any one time. don't pick binding receipt at all on test. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. C. The benefit is received as taxable income 1)premium payment a) Tax-qualified \hline \text { Jul 1 } & \begin{array}{r} An underwriter will consider each of the following factors when evaluating a risk, except: A. D. Breach of warranty When a policy is contributory how much is paid? Empire Company is a manufacturer of smart phones. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? -then picks a contract. (b) tax-free exchange provision The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. Exclusion Categories Estimated direct labor costs for next year are$440,000.00. ADD( Accidental death and dismemberment??? The policy's cash value grows as the investments grow. b) Hazard The cost of insurance protection is referred to as what? (d) free look provision. (4), 1)monthly Participating policy. Who gets $$money when the policy holder dies? \end{aligned} ? 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 The face amount decreases as the amount owed on the mortgage decreases. 3)Consideration b) Fixed income C. Concealment However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. 4. d) Loss. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". B. Nonadmitted \underline{\hspace{40pt}}. B. exclusions: when the accident occurs within an illness,disease, or mental infirmity. -its a rider a. 2)Legal Purpose d) Accumulations are tax deferred. (d) Premiums increase at an increasing rate upon renewal. (c) both I and II a) Remains level. 4)underwriting is complete 1) insured gets higher amount If there Is a risk of financial loss then there is a what? The remaining amounts should be charged to selling and administrative activities. 2)Explain and collect any ratings Whoso. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. After Alex has made 20 premium payments, his life insurance policy is considered Which model is the better fit for the data? A. D. The face amount remains the same throughout the life of the policy. B. D. Gender. II. (Hint: Take a look at the Theory of Reasoned Action.). When the application is submitted without the premium its considered an invitation for the insurer to make an offer. (a) limited-payment whole life insurance Your device, make and model. All of the following are common characteristics of this coverage EXCEPT b) Coverage ends and the policy cannot be reinstated. (b) The face amount of the policy is paid if the insured lives to age 65. The debtor does not have an insurable interest in the life of the lender. All of the following statements about the settlement of a claim are true EXCEPT. Various life insurance programs for people who served in the military are called ______________? (3), 1)bank trust officer Certificate holders may convert coverage to an individual policy without evidence of insurability. d) Tax-deductible. \end{aligned} \hline (\$ 000) & 1 & 2 & 3 & 4 \\ The total of all requisitions of direct materials issued during the month is $252,230.00. _______ pays dividends to the stock holder. D. Offer B. 2)Increase the face value WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. Correct: A Insurance . & \text { Depr } & 3,000 \\ C. Buy-Sell agreements are normally funded with a life insurance policy Which kind of agent enters into agreements with more than one insurer? An individual applies for a life policy. (Choose from the following options) 3)Alien Insurer. (b) Most policies can be renewed without evidence of insurability. b) 10% for early withdrawal An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. Who assumes control over an insurance company's funds and management if it becomes insolvent? c) Premium accountability. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same 1) mentally incompetent persons d) Graded Premium. All renewable term policies are accepted without__________ and only with_____ collected. B. The correct answer is: Maggie's Piano Studio with 1 employee. (a) Evidence of insurability is not required to renew the coverage. 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) National Association of Insurance Commissioners B. this insurance is often written in connection with automobile loans. Which of the following is the basic source of information used by the company in the risk selection process? 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. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. What type of policy does the insured most likely have? baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. 3) Increasing Term. C) common stock 4. It is most appropriate when an insured needs lifetime protection. Difference between Universal Life Insurance and Whole Life Insurance? (b) single-parent family. a) No penalties, since the owner is older than 59 All of the following information about a customer must be used in determining annuity suitability EXCEPT Which of the following statements about limited-payment life insurance is true? (a) renewal provision Out of 20 yr or 30 yr which policy is less expensive? (a) matured. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. c) Needs approach Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date A. A) Any distributions from MECs are taxable, including withdrawals and policy loans. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. 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. Jul313,000\begin{aligned} c. continuous premium whole life B. Insureds current and future income (c) Most policies can be converted to a permanent life insurance policy. Is interest always gained in Universal Life Policy? 1)Domestic Insurer 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. When an applicant pays the initial premium the agent will give them a what? A state administered health insurance for the needy? Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. Department of Defense D. The policy is a bilateral contract Which of the following statements about universal life insurance is true? B) Underwriters. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . \text{Sales revenue}&&\$780,000\\ 3) type of plan they applied for. \end{array} DONT PICK IT!!!!!! Conditional Contract Coverage is available in $50,000 increments up to the maximum of $400,000. Investors become more risk averse. 1) Competent Parties D. Solicit applications on insurer's behalf If someone dies within the Grace period, what happens? 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 insurable interest in the life of a lender b) Outline of coverage It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. I. (a) universal life insurance. 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. ? Jul3125,500\begin{aligned} Retention, Avoidance, and Transfer are all _________________. (d) Most policies have a CV that is refunded when coverage ceases. (d) They remain level. What happens when a policy is surrendered for its cash value? 2. Weiss and Fitch are two of these services, although there are more. Compute DVDs net cash provided by (used for) operating activities during July. (a) The insurance provides protection for a temporary period of time. Which type of life insurance makes sense for someone in this situation? B. All of the following are characteristics of group life insurance EXCEPT. b) A producer who handles insurer funds in a trust capacity. What are the temporary needs? 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 . A _______ __ is the additional premium needed to get covered with high or substandard risk. 4. (b) level-premium method C. Funding business continuation agreements 2) profits are returned as dividends 4)decrease premium paying period. Rates are considered inadequate when they do not cover projected losses and expenses. What else must he include? -it pays the double indemnity, 1)accident occurs, person must die within 90 days All of the following are methods of payment? B. Misrepresentation The purpose of an estate clearance fund is to pay all of the following EXCEPT. The Boyle family can be described as a What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? 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____________? Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. cash value increases while face value remains the same. When Applicant P fails to disclose all of his motor vehicle violations in an application for automobile insurance, he may be guilty of: A. Estopple a) Small employers Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. B. Aleatory contract 3)Family Policy(Limited but all fam members paid) _________ is a determination that a statement made as a warranty, or true. ~~~\text{Depreciation on factory equipment}&31,000\\ b) Unilateral 2)APS=medical records He would also like to invest in a mutual fund. B. 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 -The insurer would pay the face amount of the policy minus the past due premium. d) Older. a) Consumer Privacy Act A person cannot buy insurance unless that person is in a position to suffer a financial loss. 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? It has cash value that is invested into the stock market through mutual funds/securities. Are insurance company underwriters allowed to discriminate? Renew policy holder has an option- THE INSURER DOES NOT. Whats the "take it or leave it contract"? ~~~\text{Raw materials purchases}&\$264,000\\ \hline && \text { Jul 1 } & 65,000 \\ Concerning insurance, the definition of a fiduciary is C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. C) An insurance contract must contain a copy of the original application. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. Policyholders \textbf{For the Month Ended October 31, 2017}\\ may not be altered by an agent and must clearly state that it is not part of the contract. (b) They increase at a decreasing rate. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. The policy is a contract of adhesion. Premiums are not tax deductible as a business expense. B. Avoidance (a) They increase at an increasing rate. AccountspayableJul1Jul3114,500??? A. D. Viatical settlement. Correct: B. B. c. The 3 categories of private insurers site of incorporation? -Staged intervals SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. 3)they provide insurance to members. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? 3. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. The County is administered by a five-member Board of Supervisors who are elected for four-year terms C. Unilateral contract 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? A. signed waiver of premium 2)can be sold as a rider to a whole-life policy. \end{array} Life insurance prodceeds A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. C. Loss of personal income D. Term life. 2)face amount is set 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 A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. c. thoughts of harming a neighbor An Insurance Broker is responsible for what? (6). Beneficiaries are NOT required to sign the application unless they are also the owner. c) Fixed premium d. It does not require a duty to be owed. If a change in the application is necessary what is required? The issuance of a binder is the result of the ___________________ of an offer. II. B. 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. 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. Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. and is NOT a party to the contract. c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. B. Buy-Sell Agreements pay in the event of a medical emergency A. c) Extended term B) Passing examination with 75% or higher score. The minimum FREE LOOK period is how many days? \\ Prior to October 2017, the company had been profitable every month. The ___________ controls all rights of the contract. (b) current assumption whole life. 1)Statement of continued good health All of the following are personal uses of life insurance EXCEPT, All of the following are true of key person insurance except, D. The plan is funded by permanent insurance only. 4. There is a minimum guaranteed interest rate on all sub-accounts. -kids till 21 Funding against financial loss caused by the death of a key employee -Can't lose value Which of the following is a financial rating service? 5)Survivorship Life Policy (policy holder pays themselves). still matures at age 100, -premium is paid off at one time C. A surplus lines broker accepts business only from non- resident agents A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. Which nonforfeiture option provides coverage for the longest period of time? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries.