all of the following are true of insurance except

Which of the following about a VUL insurance policy is (are) true? Which of the following about yearly renewable term insurance is true? -Voting. A. (c) They decrease at a constant rate. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. C. A husband or wife has an insurable interest in their spouse When an agent collects the initial premium from the applicant, the agent should issue the applicant a. -cash value can lose value. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. 4. D. The face amount remains the same throughout the life of the policy. -Not a true insurance company Causes of the 2000s United States housing bubble - Wikipedia -But pays you interest, 1)Fixed annuity B. Costs of training a replacement Rates. The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Tom and Nancy Boyle provide financial support for their two children. -ages 25,28,34,37,40 On DUE DATE. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. For example, a claim will be paid only is there has been a covered loss. Chapter 4.1 : Life Insurance Flashcards | Chegg.com Why?". d. It does not require a duty to be owed. 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. 4)Consumer report=credit, -shorter time span for paying premiums \hline \text { Jul 1 } & 22,000 \\ 90-180 days. ~~~\text{Utilities expense}&12,000\\ A. -car accident not in conjunction with an illness 2)Family Income(decreasing term-policy) . 3) type of plan they applied for. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). Signed waiver of premium The ___________ controls all rights of the contract. C. Conditional contract \hline && \text { Jul 31 } & 111,000 a) Withdrawals are not taxable. 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. _______ pays dividends to the stock holder. Nature of risk 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. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? Legal Purpose 2. c. (c) Most policies can be converted to a permanent life insurance policy. All of the following statements about the characteristics of Social Security are true EXCEPT A. 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 inspection report 1) Family Maintenance(breadwinner) d) Contingent. What are the temporary needs? b) The elderly ~~~\text{Rent on factory facilities}&60,000\\ \textbf{EMPIRE COMPANY}\\ The benefit is subject to the exclusionary rule Cash values can be borrowed at any time D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Only one party is giving a legally enforceable promise- A one-sided contract is what? The policy's cash value grows as the investments grow. C. Insured's annual expenses 2) premiums do not change A. Foregin \hline All of the following statements regarding contracts of indemnity are true EXCEPT a. 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? James purchased yearly renewable term insurance. 1)tax qualified plans Is claim still paid if there is a misstatement of age or sex? Correct: B. 1) Competent Parties &\begin{array}{r|lr} The debtor does not have an insurable interest in the life of the lender. Tax-qualified annuities are subject to IRA maximum contribution limits. Reinsurer Assuming company. All of the following statements are true of liability insurance, EXCEPT Estate conservation Now Tamara can afford whole life insurance. Which of the following statements about a life insurance policy is (are) true? D. Accident D) They must be signed by both the Producer and the applicant. Adverse selection is well controlled. Which of the following best illustrates a ? ~~~\text{Indirect labor cost}&28,000\\ (c) both I & II (d) neither I or II. After Alex has made 20 premium payments, his life insurance policy is considered B. Avoidance An applicant is denied insurance because of information found on a consumer report. d) Tax-deductible. C. The insurer is always required to pay the . The designation will be void/. 4. (a) present value of future benefits and the present value of future premiums. Pure Risk. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} a) Using arbitration when the insured and insurer cannot reach agreement a) Accumulated at interest He would also like to invest in a mutual fund. (a) I only (b) II only Consumer report a) Agent's report &\begin{array}{lccc} 3. b) The policy will not be affected. Accelerated Living Benefit/Accelerated Death Benefit? Which type of risk involves the possibility of loss or gain? The policy is a conditional contract $ cant exceed indebtness. C. Solicit applications on the insurer's behalf If the insurance carried is less than required, the insurance may not cover the whole loss. The shifting of risk of loss to a larger homogeneous group is known as what? Originating policy All of the following statements about term insurance are trueEXCEPTa. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? 2)Decreasing term(premium is low) declining face value B. -immediately considered fully paid up Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Empire Company is a manufacturer of smart phones. 4)Explain the policy and its provisions c. Premiums may be raised at renewal d. Group term insurance may cover the . (b) level-premium method Can term insurance be both renewable and convertible? I. the underwriting process is approved for: II. a) Executive offer of the replacing company (D The employer is the owner, payor and beneficiary of the policy. b) A producer who handles insurer funds in a trust capacity. Why do most states have a waiting period for couples applying for marriage licenses? ~~~\text{Raw materials purchases}&\$264,000\\ Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? 2)Increase the face value \end{aligned} The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. a) Types of mutual companies 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? The applicant has been shown to be a poor personal credit risk. \end{array} The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. Term life insurance provides the largest amount of coverage for the lowest amount of premium. a) Remains level. Which of the following is the basis for a claim against an insurance policy? -tax free accumulation of borrowing. -A Mec will receive unfavorable tax treatment \end{array} \\ A key person insurance policy can pay for which of the following? 4)annual, Everytime you have a payment due. d. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. 1) preferred risk C. Whole life What does "liquidity" refer to in a life insurance policy? 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) Outline of coverage c) Accelerated benefit rider. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. Pertaining to insurance, what is the definition of a fiduciary responsibility? The issuance of a binder is the result of the ___________________ of an offer. B) The parent is responsible for the premium. A FINRA registration. What adds coverage and modifies coverage? Waive the premium if the INSURED becomes totally disabled. A. d. The total of all cost sheets completed during the month is $628,880.00. 2)standard-average What are some of the questions asked on the application to determine the premium and risk classification of the insured? Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. A SEC registration. The primary purpose of buying an annuity is? d) All of the above. D. They can decide when to pay their monthly premiums. An underwriter will consider each of the following factors when evaluating a risk, except: A. All of the following statements are true regarding mortgage protection insurance EXCEPT. The correct answer is: Premiums are typically paid by the lender. A. \end{array} 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 All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. d. falsely believing that a spouse has been 2) Transferring the risk 1. The 7 paytest is used to determine if a policy is a _______? \hline & \text { Jul 31 } & 19,500 (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. Chapter 11 - Life Insurance. 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. A ____ contract requires that both parties perform certain duties. Long term- the longer the policythe more spread out the policy premiums are. The person who receives the benefit when insured dies. When applicant is not the insured ______________ must exist. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. 14,500 \\ EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} and what two kinds? -usually mutual fund security In a car accident dealing with ADB who covers the passenger? Out of 20 yr or 30 yr which policy is less expensive? d) Primary and secondary beneficiary designations. A. 1) the premium amount Insurance companies can charge an interest rate based on the policyowner's credit report. The correct answer is: Maggie's Piano Studio with 1 employee. Whoso. Policyholders Cash value is invested in the stock market. D. A surplus lines broker deals with admitted carriers only \\ 2. c) The policy will be voided. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. 1)Statement of continued good health II. b) 5 years only. -guaranteed/fixed/level payment, -Immediate "annuitization phase" 2) Binding Reciept. c) Term life ____________ is a statement that is true to the best of the persons knowledge that is making the statement. PracticeTest Flashcards by Gabriel Martinez | Brainscape 3)2 death benefit option \end{array} D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. C) Completing pre-licensing training. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. A. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. (d) annual premium and the annual policy dividend. This method of estimating . Which risk management type is shifting the risk of loss to a larger homogeneous group? 1)increase cash value The agent Daycare is considered to be among these expenses. 2)interest sensitive 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? 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 Effects of climate change - Wikipedia Which of the following about the use of ordinary life insurance is true? b) Unilateral The storage of flammables in a fireproof container. A. Various life insurance programs for people who served in the military are called ______________? Does T-Mobile Insurance Cover Water Damage? Instructions The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. Correct: C. Unilateral contract. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. (b) single-parent family. Acceptance ($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?" Reinsurance has 2 types of policys, what are they? When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? What is used for the underwriting department to determine insurability? The employer is the owner . 2)administered charge C. Funding business continuation agreements When a policy has reached its final destination and can be paid out in full is when the policy has ____________? (b) tax-free exchange provision c) Helping insureds to file claims Term. Predicted needs of the family after the insured's death (a) matured. See Answer. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights (a) limited-payment whole life insurance 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. D. The benefit is received tax free. The insurance company may not void the insurance policy for which of the following reasons? O c. The policyowner has the option of investing the cash value in several investment accounts. All of the following statements about term insurance are true EXCEPT. D. Department of Treasury (c) both I and II Under Section I, homeowners insurance must include All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. Which term describes the probability of a loss? (Choose from the following options) C. Department of State &&\\ Correct: A.A peril. &\text { Rental Class }\\ An Insurance broker is responsible for what? Since they may receive a dividend (not guaranteed), such policies are known as participating policies. \end{array} All of the following statements concerning coinsurance are true, EXCEPT . d) Blackout approach. 1) insured gets higher amount c. Using the payback period, which project should Bill choose? -provides income for retirement Which of the following would provide an underwriter with information concerning an applicant's health history? There are 2 parties of the contract- what are they? They become permanently disabled b. 2)can be sold as a rider to a whole-life policy. a) Year only. An individual applies for a life policy. 21,000 \\ 6)free-look period-$ back guaranteed. Most insurance policies contain a specific limit that an insurer will pay for a single claim. RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. In this particular instance the applicant did not commit intentional fraud. Concerning insurance, the definition of a fiduciary is What is the difference between renewable policy holder & Insurer? d) Policy dividends. 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 With a little work, an unused office area could be converted to a rental room. A surplus lines broker accepts business only from non- resident agents a) An agent offers the use of his lake house to person as an inducement to buy. Estate Creation B. ~~~\text{Depreciation on sales equipment}&45,000\\ &\text { Accounts payable }\\ All of the following statements are TRUE concerning Debtor Groups EXCEPT Eight Summoning Eyes need to be placed to summon the Ender Dragon and players need to have 450 Dragon Weight to have a chance of getting the sword. D. Claim History 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". (b) reduced. a. Occupation The concept that the insured should not profit from an insurance transaction is called what? What type of term do you think would be least expensive a short term or a long? Insurance is designed to cover both intentional and unintentional losses. Their premiums are lower Executive office A. signed waiver of premium What is the purpose of a suicide provision within a life insurance policy? Which of the following is usually true of a participating life insurance policy? C. A surplus lines broker accepts business only from non- resident agents B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. D) adding cost of living coverage. There is a minimum guaranteed interest rate on all sub-accounts. 3)substandard risk. What constitutes the acceptance of an offer? \hline \text { Jul 1 } & \begin{array}{r} Free Chapter 1 - Tests.com A. also known as acceptance. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. (b) Cash value accumulation is slow to moderate. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. An insurance consultant CANNOT be which type of persons? -kids till 21 An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. a) Payor rider. A ______ will receive unfavorable tax treatment. C. Payment of premium Any gain in the policy's cash value is . Economics questions and answers. (c) human life value method -receiving dividends(when declared) To sell variable insurance what must you have? D. Concealment A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Medical exams provide information on current health. Steven prints a pamphlet to advertise his life insurance business. -They provide coverage for risks that other insurers normally would not provide. D. Viatical settlement. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. Solved All of the following are true for indemnity insurance | Chegg.com A. Annually renewable term policies provide a level death benefit for a premium that In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. If a change in the application is necessary what is required? 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? Nonparticipating policy. Final practice questions Flashcards | Chegg.com 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. B. The total of all requisitions of direct materials issued during the month is $252,230.00. L4. Life Insurance Policy Provisions Options and Riders Correct: A. What type of policy does the insured most likely have? *The insured is diagnosed with terminal & chronicle illness b) Larger. 1) All requirements are met What happens when a policy is surrendered for its cash value? B. c) Fixed premium _________ is a determination that a statement made as a warranty, or true. -low commissions c) Conditional Correct: C. Condition contract, enforceable only under certain conditions.

all of the following are true of insurance except 2023