What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? Are you having trouble answering the question Rebating is an unfair trade practice and is regulated by law. B Misleading advertising. Rules of replacement apply to all of the following: An insurer must present a buyers guide and policy summary prior to accepting the applicant's initial premium, unless the policy contains an unconditional refund provision lasting at least how many days? Rebating is an unfair trade practices and is regulated by law all of the following would be considered to be rebating except. How do you get to Motion settings on iPhone? Which two terms are associated directly with the premium? Log in for more information. Who is the main purpose of the seven-pay test? The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called? The policyowner is entitled to policy loans. C Consists of completing 24 hours of CE each biennium. In Connecticut, continuing education courses must be approved by the. When a beneficiary receives payments consisting of both principal and interest portions, which part are taxable as income? If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant What policy component decreases in decreasing term insurance? The policyowner of a Universal Life Policy may skip paying the premium and the policy will not lapse as long as.. A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. Correct Answer: A. When does the policy coverage become effective? And insurance producer license may be renewed at the producer has paid the applicable fees, submitted the renewal form to the commissioner, and.. Having a client in inducement to a sale not stated in the policy is an unlawful practice known as? Published by at June 10, 2022. An employee quits her job where she has a balance of $10,000 in her qualified plan. Employees must receive a minimum of $5,000 in annual compensation, no other qualified plan can be used, no more than 100 employees. Considered to be the average risk; representative of the majority of people in their age and with similar lifestyles, Insurers (this is so the insurers can compare the info that have collected on the individual). If she decides to roll over her plan to a traditional IRA, how much will she receive from the plan administrator and how long does she have to complete the tax free-roll over? And employee is insured under her employers group life plan. D Coercion. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. A Restriction of authority D D Which of the following terms best describes the advertisement? Question. User: 3/4 16/9 Weegy: 3/4 ? In which of the following situations is it legal to limit coverage based on marital status? The insurer's surrender the policy at its current cash value. And employee has group life insurance through her employer. What term best describes this arrangement? C Law of large numbers The separate account under many annuities provides the annuitant with a dozen or more investment options ranging from "money market funds" to "growth stock funds" to "precious metal funds". At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. The following are nine technical accounting terms introduced or emphasized in this chapter: ResponsibilitymarginTransferpriceCommonfixedcostsContributionmarginCost-plustransferpriceTraceablefixedcostsPerformancemarginProductcostsCommittedfixedcosts\begin{array}{lll}\text { Responsibility margin } & \text { Transfer price } & \text { Common fixed costs } \\ \text { Contribution margin } & \text { Cost-plus transfer price } & \text { Traceable fixed costs } \\ \text { Performance margin } & \text { Product costs } & \text { Committed fixed costs }\end{array} C Defamation. This pays 2 or 3 times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident. For an individual who is NOT covered by an employer-sponsored plan, IRA contributions are, Amount of coverage is determined according to nondiscriminatory rules, individuals covered, under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability. In this case, what will the policy beneficiary receive? Example: the insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of Good Health, A presentation of non-guaranteed elements of a policy, One-sided: only one party makes an enforceable promise. This rider usually expires at the insured's age of 40. What information will be stated in the consideration clause of a life insurance policy? When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. All of the following events will terminate a producer's certificate of appointment EXCEPT Which of the following is an example of a producer being involved in an unfair trade practice of rebating? Because of this, the company charged him a higher rate for his insurance. What is the result of this? This annuity plan is What is true regarding taxation of accelerated benefits under a life insurance policy? B Nothing, unless the remarks were in writing A$500 B Mailing an agency brochure to a prospective client any person acting as an insurance producer without a valid license may be fined up to. 6 2/3 Two or more variables considered to be related, in a statistical context, if their values change so that as Cellular respiration is a process that all living things use to convert glucose into energy. Brokers and financial advisors are prohibited from accepting rebates since they may create conflicts of interest. He wants to withdraw some money in order to pay medical bills. "At the time of the application" is when interest must exist. C C If the corporation collect the policy benefit, then. B. Formula: (Ann . A producer in tensional he violated insurance statues. D False advertising. 20/3 The death protection component of Universal Life Insurance is always.. A return of Premium term life policy is written as what type of term coverage? What is true regarding a non-qualified retirement plan? 1 to 75. After 5 years, she decides to leave the company and work independently. C 12 months If the father becomes disabled, what will happen to the life insurance premiums? On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. C Sharing commission with the insured Assuming he never changed his beneficiary, the policy proceeds will go to Who can request changes in premium payments, face value, loans, and policy plans? 10 czerwca 2022 . What determines the length of time that benefits will be received under the fixed-amount settlement option? D Adverse selection. launchpad classlink nmusd; cantonese text to speech; 15 second tv commercial script examples This is a personal use of life insurance known as. Commissioner. Mutual-policyholders; Stock-stockholders. D Legal, provided that the information can be verified. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. I love when a hack helps me to recycle, and makes my life easier. What usually includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years? C 30 days Y was killed in an automobile accident on August 22, before the policy was issued. If the corporation collects the policy benefit, then. C 90 days Cash surrender, extended term, reduced paid-up. This answer has been confirmed as correct and helpful. How much energy is needed to move one electron through a potential difference of 1.0 102 volts, Includes procedures and techniques that are designed to protect a computer from intentional theft. This practice is considered In order to to do that, what may happen? All of the following are true regarding rebates EXCEPT. The policy contains the optional Payor Benefit rider. What is the primary purpose of a 401(k) plan? Which type of life insurance policy generates immediate cash value? Both the offer and acceptance of a rebate are illegal. The ownership provision entitles the policyowner to What is correct concerning the taxation of premiums in a key-person life insurance policy? An insured misstates her age at the time the life insurance application is taken. The payments that that annuitant invests into the variable annuity are invested in the insurer's separated account. Corporation is the owner and beneficiary of the key person life policy. What describes the tax advantage of a qualified retirement plan? If an applicant has been licensed in the past 12 months, the Commissioner may waive education and examination requirements. Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. Michigan's continuing education requirement has each of the following characteristics EXCEPT A Illegal until endorsed by the Guaranty Association B. Defamation. The policy endows when the insured turns 100. If a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal resident? Th rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called? An insurer, agent, solicitor, or other person that violates the Insurance Code section on rebating is guilty of a misdemeanor. These are all considered to be Unfair Trade Practices, which are major violations that can lead to heavy penalties. all of the following would be considered rebating except. D Why is an equity Indexed annuity considered to be a fixed annuity? A Giving an applicant a $5 pen with the insurer's logo during the insurance application process 180 days. Pass an examination for each lie for which a license is sought c. Be appointed to represent at least one authorized insurance company d. Be at least 18 years old A Adverse selection C Cease and desist order Explaining to client the advantages of permanent insurance over term and suggesting changing policies. Rating. The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the.. Life income joint and survivor settlement option guarantees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. D Engages in fraud. Which of the following would be considered false advertising? A Discrimination. Like a fixed annuity, EIA's have guaranteed minimum interest rates, also less risky than variable annuities, the insurance company also keeps a percentage of the returns. An insured had a $10,000 term life policy. What statement concerning group life is true? A Defamation If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a? A Applicant must be 18 years old B An offer to share in commissions generated by the sale. All of the following actions are considered rebating except sharing commissions with other licensed and appointed agents An insurer, in general business practice, fails to promptly provide a reasonable explanation for the denial of a claim. The president of a company is starting an annuity and decides that his corporation will be the annuitant. D Business Entity. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. D A license to practice law. And employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his All of the following would be different between qualified and nonqualified retirement plans: An employee has group life insurance through her employer. The policyowner pays for her life insurance annually. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT Updated 10/30/2021 2:46:29 PM. Employer contributions are tax deductible as ordinary business expense, funds accumulate on tax-deferred basis, employee and employer contributions are not counted as income to the employee for income tax purposes, They are tax free to terminally ill insured, Buy-sell agreements are normally funded with a life insurance policy, The plan must be communicated to all employees, the plan must be for the exclusive benefits of the employees and their beneficiaries, the plan must be permanent, written and legally binding. When I just opened a new WSL2 Ubuntu 20.04 terminal and ran code . If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? For the purpose of making an investigation, the commissioner does have the power to do all the following: And in sure publishes intimidating brochures at portray the insurer's competition as financially and professionally unstable. An insured has chosen joint and 2/3 survivor as the settlement option. 60 days. To appoint a producer as it's agent, the appointing insurer must file a notice of appointment with the commissioner within how many days from the date the agency contract is executed? B Criminal offense What are examples of a business use of life insurance? What type of annuity is it? A temporary license in this state is valid for a maximum of What relationship is not an example of insurable interest? What will she need to provide for proof of insurability? C Defamation C 7 What percentage of a company's employees must take part in a noncontributory group life plan? Upon policy reinstatement to pay all overdue premiums with interest before the policy is reinstated, The policyowner may assign a part of the policy (collateral assignment) or the entire policy (absolute assignment), Regarding the free-look provision, the insurance company. C Controlled business. A participating life insurance policy may pay a portion of its net earnings to a policyholder, but dividends cannot be guaranteed. M, who is not licensed as an insurance agent, works part-time in her father's insurance agency. Which of the following allows different operating systems to coexist on the same physical computer? All of the following are true regarding rebates EXCEPT a) Rebates are only allowed if specifically stated in the policy. An insured is diagnosed with cancer and needs help paying for her medical treatment, The annual dividend is retained by the company, the interest is credited at a rate specified by the policy, and the policyholder has the right to withdraw the accumulations at any time. In classifying a risk, the Home Office underwriting department will look at all of the following.. A generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process. D A termination issued by the appointing insurer. Which is NOT required of an applicant for an insurance license in Michigan? Which of the following is not a standard mounting dimension for an electric motor? All the following could be considered rebates if offered to an insured in the sale of insurance except? 3. A cease and desist order requires an individual to stop doing a specific activity that the Commissioner believes to be violating the Insurance Code. Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal. Life insurance cost indexes are our only useful when comparing a minimum of how many similar policies? If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually? What is the total, monetary penalty this producer can expect to receive? B. the designee of a licensed insurance producer who enters active duty in the US Armed Forces Follow the following are true of the federal tax advantages of a qualified plan. A copy of the notice to the Commissioner must be sent to the producer in question within 15 days. Assuming that a policy does not contain an unconditional refund provision of at least 10 days, when must a Buyer's Guide and policy summary be provided? A 30 days What is the minimum civil fine per violation of the Insurance Code of this state? Heterotrophs (like humans) ingest 19) Juan is the person employees go to when knowledge of a topic was needed.Juanholds ________ power.A) legitimateB) rewardC) referentD) expert. As a condition for renewal of their licenses, how many hours of continuing education required for all resident and nonresident insurance producers? A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years? A Defamation Children's rider are term insurance covering all of the children in the family, including: What explains the policyowner's right to change beneficiaries, choose options, and receive proceeds of a policy? How can she obtain an individual policy? (Example) your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. D Other than the 3 hours of ethics, licensees may take courses in any line. C Dividends from a mutual insurer. Added 149 days ago|10/30/2021 2:46:29 PM. C A legal advertising strategy Obtain appropriate signatures on the application for insurance, help prevent adverse selection, and solicit business that will fall within the insurer's underwriting guidelines. D Misrepresentation, How much is an agent's appointment fee? This is due to what provision? The requirement that an agent not co-mingle insurance monies with their own fund is known as? D Audit or abstract insurance policies or annuities. The company also guarantees the specified dollar amount for each payment and the length of the payout period. B Suspension of authority Insurers are also not allowed to cancel individual coverage due to a change in marital status. What would be the right policy for this client? What is the purpose of establishing the target premium for a universal life policy? Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. Before the Director will issue a license, a person must meet all of the following qualifications EXCEPT a. A Assigning different risk classifications to applicants based on gender identity B 7 days Which of the following best describes this act? He dies in a freak accident on June 1. The applicant must file a certificate of completion of the prelicensing courses taken to prove that the courses were not taken more than 12 months before the Commissioner received the application. A D Collecting a lower premium than what's specified in a policy as a token of client appreciation. If the producer continues to violate the entrance code, I knew so penalty will be assessed every? And insurance producer may not act as an agent for an insurer unless he/she has become which of the following?? When a company criticizes the financial situation of another company with the intention of injuring that company, it has committed an illegal trade practice called defamation. He's insured under a life insurance policy with the accelerated benefits rider. If an insurer terminates a producer, the Commissioner will receive a notification. The amount of payments will be determined by taking into account all of the following: When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be used to purchase term insurance that has a face amount.. An insured owns a $50,000 whole life policy. A Misdemeanor What must be acceptable in order for the ride to be able to waive the payment of premium? The agent is guilty of The company is guilty of In Michigan the state's continuing education requirement Variable life insurance is regulated by..: Equity Indexed Annuities invest on an aggressive basis in order to yield higher returns. An agent misrepresents policy benefits to convince a policyowner to replace policies. Which of the following, upon conviction, carries a fine of up to $2,000 for each violation? all of the following would be considered rebating except. He never remarried and dies at age 61, leaving 2 grown-up children. How many days does the insurer have to deliver this notice? What type of insurance policy may be used to fund this agreement? As it turns out, the answer to this question depends upon a variety of factors. What are the three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term: Best description of what an annuity period is: Policy which allows the partial withdrawal, or surrender, of the policy cash value. A Deals with insurance outside the scope of the license. C$2,000 She has decided that she would rather use the dividends to help pay for her next premium. What option does this describe? A father owns a life insurance policy on his 15-year-old daughter. Unintentional misspellings are not a misrepresentation. Which of the following would NOT be considered rebating? The policyowner of an adjustable life policy wants to increase the death benefit. If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? A fixed annuity is fixed in the sense that it provides a guaranteed minimum rate of interest and income payments that do not vary from one to the next. Will result in having to pay the highest premium due to health, history, habits, etc. A corporation is the owner and beneficiary of the key person life policy. D Must be completed by all licensed resident and nonresident producers. The first three, Straight life, limited payment, and single premium, are the basic forms of whole life. Each agent must pay a $5 appointment fee to the Commissioner. A Payment of restitution Employer contributions are not included in the employee's gross income, SEP's allow the employer to make annual tax-deductible contributions of the 25% of an employee's earned income, SEP's have a higher tax deductible contribution limit than an IRA. Commissions are set by a schedule or negotiation between the producer and the insurance company. Ultimately, the commissioner determined that there were a total of 25 separate violations. A Rebating. What is the other term for the cash payment settlement option? What does this mean to the beneficiaries? SUGGESTIONS FOR PREPARING SPEAKING NOTES While several of these reminders might strike you as obvious, speakers often ignore them when preparing to speak. B standard form contract facebook; how to treat mange in cats at home twitter; moon drop grapes uk instagram; arrow olivia sewing table youtube; custom teku glassware mail d) Rebates are allowed if it's in the best interest of the client. Which of the following would NOT have a policy loans provision? A Temporary The cinema hall is to far from my house.Ans: The cinema hall is too far from my house.(3). An insured has a life insurance policy from a participating company and receives quarterly dividends. The premiums paid by the employer in a business life insurance policy are All of the following are true of a key person insurance.. What is true concerning a buy-sell agreement? Ownership is the difference between these two companies. If an insured continually uses the automatic premium loan option to pay the policy premium. All riders that will cause the death benefit to increase? Asked 10/30/2021 2:23:39 PM. Which of the following best describes the act? Company Information; FAQ; Stone Materials. When twin brothers applied for life insurance from company a, the company found that while neither of them smoke and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. And insured has a modified endowment contract. Thanks for choosing us. Paid cash to cover desk purchased on account. Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. B Illegal What would be the face amount of the new term policy? B All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A Stocks, securities, or bonds. Texas All Lines Adjuster Test - Questions And Answers-Accumulated Depreciation - The total decrease in an item's value over a period of time. The dividend option in which the policyowner used dividends to purchase a term policy for one year is referred to as the An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Which type of life insurance policy allows the policyowner to pay more or less than the planned premium? must ensure a pair that's benefit claim after receiving the product of death? Any surplus money is returned to the policyholders as dividends. Indicate the effects of the given transaction on assets, liabilities, and equity, including identifying the individual accounts affected. Eligibility requirements for a license are established by the Insurance Code. New answers. D A Stocks, securities, or bonds. Which of the following is an example of a producer being involved in an unfair trade practices of rebating? He has instructed the company to apply the policy dividends to increase the death benefit. The policyowner should have her husband named as the.. A couple owns a life insurance policy with a Children's Term rider. A Defamation How many credit hours of excess continuing education or producers allowed to carryover to the next renewal cycle? Your email address will not be published. The producer could be found guilty of Question is All of the following species are considered coliforms except, Options are (A) Enterobacter aerogenes , (B) Klebsiella pneumoniae , (C) Salmonella typhi , (D) Escherichia coli , (E) , Leave your comments or Download question paper. The "accumulation period" is the period of time over which the annuitant makes payments (premiums) into an annuity. Azanswer team is here with the correct answer to your question. All of the following are true regarding rebates EXCEPT: A) Rebating can be anything of economic value, given as an inducement to buy B) Rebates are always allowed C) Rebates are only allowed if specifically stated in the policy D) Dividends are not considered to be rebates A temporary insurance license maybe issued without examination and all of the following: A candidate for an accident and health producer's license must complete how many hours of prelicensing education? Business entity means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. What is the required percentage of participants in a contributory group plan? An agent who offers a cash reward to a prospect for buying a policy is guilty of. All the following are business uses of life insurance: If I retirement plan or annuity is "qualified," this means Who is the owner and who is the beneficiary on a key person life insurance policy? In comparison to consumer reports, what best describes a unique characteristic of investigate consumer reports?