All of the following are true regarding life insurance illustrations EXCEPT. The County is administered by a five-member Board of Supervisors who are elected for four-year terms c) Copy of the original application C. Conditional contract The CAS number shown in an entry is typically . \hline && \text { Jul 1 } & 65,000 \\ \hline \text { Jul 1 } & \begin{array}{r} -A Mec will receive unfavorable tax treatment B. All of the following characterize term life insurance, EXCEPT: Select one: a. *The insured is diagnosed with terminal & chronicle illness c) An agent offers tickets to a baseball game as an inducement to buy insurance. 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. &\text { Accounts payable }\\ Hospital bills of the key employee L4. Life Insurance Policy Provisions Options and Riders (c) Most policies can be converted to a permanent life insurance policy. All of the following are common characteristics of this coverage EXCEPT Who would be eligible to obtain SGLI? -paying for certain time and stop. It is the specific cause of loss. 3)increase the length of coverage 4 All of the following statements about term insurance are true EXCEPT d) All of the above. Signed waiver of premium (c) face amount of the policy and the legal reserve. Claim is still paid with an adjustment to the benefits. ch 7 Flashcards | Quizlet 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) Conditional Reciept Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. The cash value of availability to the policyowner Statements in the application that are guaranteed true but later found to be false may result in what? The storage of flammables in a fireproof container. 3)premium is collected c) Misrepresentation Contract of adhesion d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. a) Because the insured is currently not a drug user, his policy will not be affected. 4)Consumer report=credit, -shorter time span for paying premiums What is a statement in the application guaranteed true in all respects? All of the following are methods of payment? 4)underwriting is complete Beneficiary's age is not a suitability factor. 2)APS=medical records -Follows all conditions of contract & pays premium, -insurer says how policy works All of the following are true of insurance EXCEPT It transfers risk. 2)Family Income(decreasing term-policy) -guarantee a stream of income to the person purchasing it known as the annuitant. 3)Increasing term adds face value. As her friend, you have been asked to review the income statement and make necessary corrections. D. The ratings are available to the public There is a limit for a withdrawal and the insurer charges a fee. An insurer that is incorporated in the same state that they are doing business in is a_____________.? B. D. Premiums paid are deductible as a business expense. (b) II only A. B. Marital Status (a) I only (b) II only B. An insurer that was incorporated in a different state that it is doing business in. Predicted needs of the family after the insured's death Correct: B. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. What are two reasons that people deposit money in banks? ~~~\text{Depreciation on factory equipment}&31,000\\ 2) standard risk 3. The cash value available to the policyowner -Take it or leave it contract The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. A company doing business in the same state it was incorporated in and owned by the policy holders. Payor benefit/Clause is always a _________. 4)defined contribution plans. b) Coverage ends and the policy cannot be reinstated. All of the following statements about universal life insurance are true EXCEPT Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees. 3) Retaining the risk. 3)according to the source of annuity income Correct: C. Unilateral contract. Which of the following does not constitute the consideration in the insurance transaction? ? b) Larger. All of the following statements about ordinary life insurance are true EXCEPT. \end{array} C. They can borrow higher amounts off of their policies 2)Variable annuity The insurance provides protection for a specified period of time. 2) premiums do not change c) Conditional A. Foregin - 20 pay life-premiums paid for 20 years and paid up at 65 Funding against financial loss caused by the death of a key employee The policy is a contract of adhesion b) Cost of living rider. Which of the following best illustrates a Round Trees management makes a forecast of the demand by rental class for each night in the future. A ____ contract requires that both parties perform certain duties. The cost of insurance protection is referred to as what? The NAAR for a life insurance policy is the difference between the D. Represent the insured's interest Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. a) Universal life 21,000 \\ d) Fiscal responsibility. good health 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. O d. Chapter 11 - Life Insurance. See Answer. All of the following statements about the characteristics of Social Security are true EXCEPT A. 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? -policy holder adheres to it (economy). 2) Binding Reciept. 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. Rates. 3)riders & exclusions C) common stock 4. 2)administered charge d) Older. 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. We participate at both the national and state levels as a leading advocate in the judicial, legislative, and regulatory environment to ensure that Members' concerns are heard by lawmakers on issues that impact medical professional liability. The applicant accepts the invitation by paying the ___________. The ___________ controls all rights of the contract. What is the purpose of a suicide provision within a life insurance policy? -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? Which of the following is true regarding the beneficiary designation of the former spouse. paperspast.natlib.govt.nz \textbf{Income Statement}\\ The Terrorism Risk Insurance Program is administered by which of the following Federal entities? \text { Type I } & \$ 30 & \$ 35 & - \\ 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 3)certified public accountants, Is insurance that is provided by the Federal or State government B. All of the following statements about the settlement of a claim are true EXCEPT. -The insurance dept. B. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers A. b) The agent's report The issuance of a _________ is the result of the acceptance of an offer. -kids till 21 All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 3)defined benefit plans B. Premiums are taxable to the employee when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Prior to October 2017, the company had been profitable every month. Which of the following statements about endowment policies is true? The following are all true regarding risk management, except: A. Various life insurance programs for people who served in the military are called ______________? (c) two-income earner family. 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 Can a misrepresentation render the contract void if the misrepresentation is material to the risk? Does T-Mobile Insurance Cover Water Damage? \end{aligned} a) Consumer Privacy Act What type of interest does universal life have? Correct: B. B) the applicant. -Can't lose value b. The insurer issues the policy and learns of his history one year later. B. Avoidance a) Juvenile Life Copyright 2009-2022 Tests.com LLC - All Rights Reserved. Correct: A. \end{array} b) 10% for early withdrawal Which of the following documents must be provided to the policyowner or applicant during policy replacement? Round Tree has 100 Type I rooms and 120 Type II rooms. 1 / 25. (c) both I and II D. Premiums are tax deductible as a business expense, B. A persons assets & liabilities at their time of death. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. \end{array} States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. 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? C. Solicit applications on the insurer's behalf b) 5 years only. a) A medical examination Which of the following about a VUL insurance policy is (are) true? Which of the following is the best reason to purchase life insurance rather than annuities? Premiums are not tax deductible as a business expense. Correct: C. Condition contract, enforceable only under certain conditions. Its controller resigned in October 2017. Which of the following is a physical hazard? Causes of the 2000s United States housing bubble - Wikipedia D. Breach of warranty All of the following statements concerning coinsurance are true, EXCEPT . \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ Instructions An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. To sell variable life insurance policies, an agent must receive all of the following EXCEPT b) Conditional receipt Credit life Whats the "take it or leave it contract"? A contract between insurer and policy holder. James purchased yearly renewable term insurance. Must have at least 32/40 question correct for positive rating. 1. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. The death benefit varies according to investment experience. II. The policy does not go into effect until the premium has been collected. The policyowner has a variety of options for investment of the cash value. (b) They increase at a decreasing rate. & &&\textbf{ Quarter } \\ Which method makes the most sense for her to employ? What is the primary source of info used to determine insurability by the underwriting department? What (5) Factors for GIO & GIB. whose covered? Which of the following statements about limited-payment life insurance is true? Solved 55. All of the following statements regarding | Chegg.com -usually mutual fund security Address of his principal office Use the indirect method. Modification to a policy is a _______________? 4)settlement options, 1)stand alone policy It is most appropriate when an insured needs lifetime protection. ~~~\text{Selling and administrative salaries}&75,000\\ CPI (consumer price index) without evidence. Which type of life insurance makes sense for someone in this situation? All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. The purpose of an estate clearance fund is to pay all of the following EXCEPT. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. The policy's cash value grows as the investments grow. -cash value can lose value. An applicant is denied insurance because of information found on a consumer report. (b) tax-free exchange provision This form of life insurance has fixed premiums and the cash value is not guaranteed. a) Accumulated at interest (c) term insurance B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. 1)increase cash value Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). B. Misrepresentation Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . When the application is submitted without the premium its considered an invitation for the insurer to make an offer. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball (d) neither I nor II. d. It does not require a duty to be owed. C. Application Their premiums are lower Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? ____________ insurer is not a type of insurer. How do premiums for yearly renewable term insurance change as an insured gets older? C. Waiver of Estoppel 3) type of plan they applied for. 2. 2)Decreasing term(premium is low) declining face value A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? A SEC registration. \end{array} 1)Whole Life b) Universal Life d) Contingent. (d) annual premium and the annual policy dividend. A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. Life insurance prodceeds Which model is the better fit for the data? A. B. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. ~~~\text{Indirect labor cost}&28,000\\ The debtor does not have an insurable interest in the life of the lender. -car accident not in conjunction with an illness (c) expired. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. B. this insurance is often written in connection with automobile loans. -receiving dividends(when declared) 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???? b) State attorney general Estimated direct labor costs for next year are$440,000.00. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? -pay for certain time and stop They keep a high percentage of any interest earned on their policies A peril 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. It is a type of tort. A. 3. A. the underwriting process is approved for: When must insurable interest exist in a life insurance policy? 1) preferred risk However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. Which risk management type is shifting the risk of loss to a larger homogeneous group? What is the term for a cause of loss, such as the theft of a car? &\text { Rental Class }\\ (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. -guaranteed/fixed/level payment, -Immediate "annuitization phase" Waiver of Premium- What happens to the insurer? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. Chapter 3 part 1 Flashcards | Quizlet Chapter 3.2 - Subjecto.com 3)MIB=records of all previous insurances they had. Group life insurance is most often issued as guaranteed annual renewable term. Statement of good health (Medic Information Bureau)? 3. A key person insurance policy can pay for which of the following? After everything is signed & premium is collected What does the agent give to the policy holder? If applicant is not the insured- then insureds signature is required -cash value options B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. These individuals qualify for lower premiums than those in the other categories. All of the following statements about term insurance are true EXCEPT. The policy is a contract of adhesion. A securities license. c) Fixed premium &\begin{array}{r|lr} IN WHITE RAIMENT. Your device, make and model. A. 3,000, AccountsreceivableJul121,000???? A producer wishing to appeal the final order of the commissioner would appeal to???? also known as acceptance. -receiving dividends(when declared) D. An individual has an insurable interest in her or her own life. \end{aligned} Cash values are available in whole life policies. 1. B) A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. saalt menstrual disc how to use - evcc-estheticstraining.com 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.