all of the following are true of insurance except

(4), 1)monthly Rates. 1)premium payment When must insurable interest exist in a life insurance policy? In this particular instance the applicant did not commit intentional fraud. Reinsurer Assuming company. &\begin{array}{lr|rr} Being young and healthy means you can skip out on health insurance. \text{Less: Operating expenses}\\ c) Increases annually. C. Social Security works exactly same as private insurance. (a) Evidence of insurability is not required to renew the coverage. c) Denying coverage after a reasonable investigation has been conducted 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? 1) insured gets higher amount 6/1 Quiz: Group Life Insurance Flashcards | Quizlet c) Counselor Predicted needs of the family after the insured's death D. Premiums paid are deductible as a business expense. 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. If a change in the application is necessary what is required? has reached its final destination and can be paid out in full. To sell variable insurance what must you have? (3), 1)bank trust officer B. Beneficiarys age An annuity is exchanged for another annuity. If company pays dividends, then they are a? c) 15% for early withdrawal - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. I. All of the following statements concerning coinsurance are true, EXCEPT . This method of estimating . c) National Association of Insurance Commissioners (a) universal life insurance. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. A monthly deduction is made from a policy's cash value for the cost of insurance protection. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). \hline & \text { Jul 31 } & 19,500 A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights 1. The cash value available to the policyowner \textbf{For the Month Ended October 31, 2017}\\ 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. a) Small employers Use the indirect method. A. &\begin{array}{cr|} (a) renewal provision Permanent Insurance have 3 words in common, what are they? e. The total of costs recorded on all sales invoices for the month is$654,052.00. (Choose from the following options) 3)Minors. Quarterly working capital levels for your firm for the next year are included in the following table. For this amount of production, total factory overhead is estimated to be $396,000.00. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. Solved All of the following statements about professional - Chegg 2)attorneys Occupation 3) policy builds cash-value Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. 2)Variable annuity Is interest always gained in Universal Life Policy? (b) reduced. -The insurer would pay the face amount of the policy minus the past due premium. How has the Aswan High Dam affected the lives of Egyptians? D) An agent's report and inspection report provides personal information. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. -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? ~~~\text{Indirect labor cost}&28,000\\ &\text { Accounts payable }\\ \text{ ???? } d) Fiscal responsibility. ? The Terrorism Risk Insurance Program is administered by which of the following Federal entities? c) Conditional Rates are considered inadequate when they do not cover projected losses and expenses. Exclusion Categories The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles In this case, the applicant will most likely need to fill out a Statement of Good Health. c) Guides describing company financial integrity Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. $ cant exceed indebtness. D. The benefit is received tax free Prepare the following details: Mobile number, serial number, or IMEI. d) The Medical Information Bureau. Under Section I, homeowners insurance must include the underwriting process is approved for: Question: All of the following statements about variable life insurance are true EXCEPT O a. A peril -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded A. (b) Cash value accumulation is slow to moderate. D) adding cost of living coverage. -below market interest rates on borrowing Empire Company is a manufacturer of smart phones. \end{aligned} [Solved] All of the following are true of insurance EXCEPT It transfers (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. A. (b) variable life insurance Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? Insurance is designed to cover both intentional and unintentional losses. InventoryJul1Jul3122,000???? A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Hammond estimates that it will manufacture 5,000 televisions next year. Pure Risk. 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. \hline && \text { Jul 1 } & 65,000 \\ 2)Explain and collect any ratings Which of the following statements about limited-payment life insurance is true? Chapter 4.1 : Life Insurance Flashcards | Chegg.com The issuance of a _________ is the result of the acceptance of an offer. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. These individuals qualify for lower premiums than those in the other categories. C. Domestic Payor benefit/Clause is always a _________. &\text { Cash }\\ A key person insurance policy can pay for which of the following? 1)tax qualified plans \hline \text { Jul 31 } & 17,000 When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? True or False: Under the Financial Responsibility Law, you are required Study with Quizlet and memorize flashcards containing terms like Which of the following would not appear in the asset section of an insurance company's balance sheet? Free Standardized Tests Flashcards about Health&Life - StudyStack (c) The number of times the coverage can be renewed is limited. 4)underwriting is complete Costs of training a replacement b) Policyholder A. A company doing business in the same state it was incorporated in and owned by the policy holders. All of the following are characteristics of group life insurance EXCEPT. The person who receives the benefit when insured dies. c) The inspection report The storage of flammables in a fireproof container. B) A fiduciary is a producer who handles insurer funds in a trust capacity. b) Copies of illustrations and application -kids till 21 d) Policy dividends. \hline Appoint a solicitor as his or her representative A. Various life insurance programs for people who served in the military are called ______________? The correct answer is: Premiums are typically paid by the lender. 1) preferred-low Term life insurance provides pure death protection. D. The face amount remains the same throughout the life of the policy. Which of the following is the basic source of information used by the company in the risk selection process? Tax-qualified annuities are subject to IRA maximum contribution limits. A. Predicted needs of the family after the insured's death are used in the needs approach. (Choose from the following options) Waiver of Premium- What happens to the insurer? Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. \end{array} See Answer. 2)standard-average C. Insured's annual expenses The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} 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. Which of the following statements about universal life insurance is true? \textbf{EMPIRE COMPANY}\\ An insured owns a life insurance policy. Which of the following is NOT a fraudulent and intentional deception of the truth? The applicant has been shown to be a poor personal credit risk. It is the specific cause of loss. Most insurance policies contain a specific limit that an insurer will pay for a single claim. \end{array} A securities license. 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. Group Life Insurance Flashcards | Chegg.com b) Index used by stock companies 2)can be sold as a rider to a whole-life policy. B. The parties in the insurance contract consist of whom? 3)mortality charge. The CAS number shown in an entry is typically . When will coverage begin? B. Insureds current and future income Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. d) Producer. 4)Consumer report=credit, -shorter time span for paying premiums c. Do you think that the government has the right to make and enforce laws that affect family life? *The insured is diagnosed with terminal & chronicle illness c) Fixed premium B. Statements in the application that are guaranteed true but later found to be false may result in what? Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. The County is administered by a five-member Board of Supervisors who are elected for four-year terms B. 2)Family Income(decreasing term-policy) Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . \hline & \text { Jul 1 } & 55,000 \\ c) Conditional An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. D. An individual has an insurable interest in her or her own life. 1)Whole Life What is the primary source of info for the underwriting department to determine insurability? \textbf{Income Statement}\\ & \text { Depr } & 3,000 \\ C. Application C. The death benefit paid to the beneficiary Which of the following about a VUL insurance policy is (are) true? 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? C. A surplus lines broker accepts business only from non- resident agents Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? A. M327. B. What are the (5) Factors considered with combination policies Who and What are they? 1)Statement of continued good health 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? Example: company that is incorporated in NJ and sells in NJ. Which of the following is the basis for a claim against an insurance policy? (b) face amount of the policy and the total premiums that have been paid. B. B) the applicant. Which of the following is NOT an allowable 1035 exchange? (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. -guarantee a stream of income to the person purchasing it known as the annuitant. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? Estate conservation The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. d) 50% tax on the amount not distributed as required. C. Risk All of the following statements about term insurance are true EXCEPT. The primary purpose of buying an annuity is? d) Contingent. d. (d) indeterminate-premium whole life. Investors become more risk averse. \end{array} 3) Ordinary. ______________ is defined as restoring the insured to the same financial condition as before the loss. C. Tax Status Insurance is considered a transfer of risk. IRS classification of a policy that is overfunded? Insurance transfers risk but it does not__________ risk. Correct: B. The ___________ controls all rights of the contract. D. They can decide when to pay their monthly premiums. -immediately considered fully paid up Tom and Nancy Boyle provide financial support for their two children. All of the following statements are true regarding mortgage protection insurance EXCEPT. D. Reduction is a method of managing risk. b) 10% for early withdrawal a) Because the insured is currently not a drug user, his policy will not be affected. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). (a) blended family. -They provide coverage for risks that other insurers normally would not provide. All of the following statements about universal life insurance are true EXCEPT The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. There is no limitation on the number of key employee plans in force at any one time B. Which of the following statements about endowment policies is true? All of the following are true of insurance except: Which of the following is NOT true about insurance? 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? Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? Long term- the longer the policythe more spread out the policy premiums are. a) To limit the insurer's liability after the 2 year waiting period A) Any distributions from MECs are taxable, including withdrawals and policy loans. Insurance companies can charge an interest rate based on the policyowner's credit report. B. Insurance is designed to provide protection against which of the following? D. Speculative Risk d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Joe, Larry, and Curly own a small business. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? a) Payor rider. C. Waiver of Estoppel 3)Consideration Compute DVDs net cash provided by (used for) operating activities during July. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ One sided contract is a ______________ contract. Originating policy 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 interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. -the insurer sets the terms of the contract and the applicant must adhere to them. D. The ratings are available to the public 1 / 25. 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) loss reserves 2. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. ____________ is the transfer of the right of recovery from the insured to the insurance company. 21,000 \\ Which of the following best describes a surplus lines broker? 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. B. It is a type of tort. a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. The cost of insurance protection is referred to as what? -sex doesn't determine eligibility. B) They illustrate the nonguaranteed elements of the policy.

all of the following are true of insurance except 2023