all of the following are true of insurance except
d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. By William Lb Qtjetjx, Author of . 3) Ordinary. 2. &\begin{array}{lccc} After examining other manufacturing cost data, you have acquired additional information as follows. \hline \text { Jul 1 } & 5,500 &&\\ Funding against financial loss caused by the death of a key employee 1) cash value earns interest The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. D. Claim History What are two reasons that people deposit money in banks? -paying for certain time and stop. Which of the following statements about limited-payment life insurance is true? A corporation is the owner and beneficiary of the key person life policy. (c) both I & II (d) neither I or II, Diane is a single parent. &\text { Inventory }\\ -low commissions - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. d) Accumulations are tax deferred. 4)Consumer report=credit, -shorter time span for paying premiums A. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 1)temporary Which of the following statements is not correct regarding rates and premiums? Which model is the better fit for the data? Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. The applicant's medical background is addressed in Part 2 - Medical Information. (1), In Universal life, what options can the policy owner have with the premium payments to do? Rebating is an unfair trade practice and is regulated by law. C. A surplus lines broker accepts business only from non- resident agents What insurance concept is associated with the names Weiss and Fitch? 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. B. D. Speculative Risk Everything else equal, how would the factor below affect the market value of a stock? 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. ____________ insurer is not a type of insurer. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. B. the underwriting process is approved for: If someone dies within the Grace period, what happens? Quarterly working capital levels for your firm for the next year are included in the following table. 2)standard-average Domestic Insurer - Limited Pay Life -guarantee a stream of income to the person purchasing it known as the annuitant. B. Aleatory contract a) Year only. \text { Type I } & \$ 30 & \$ 35 & - \\ Flashcards - PSI online exam Life Insurance - FreezingBlue 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. 2)quarterly A conditional or binding receipt is given when an applicant does what? -it is a type of Rider Flashcards - WA Common Law Practice Exam - FreezingBlue C. The insurer is always required to pay the . a) Accumulated at interest B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. C. The benefit is received as taxable income 1) Avoiding the risk a) Consumer Privacy Act When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. It does not include breach of contract. - 20 pay life-premiums paid for 20 years and paid up at 65 Must have at least 32/40 question correct for positive rating. 1. Waiver of Premium- What happens to the insurer? D) Claims result from losses by a peril insured against in an insurance policy. -greater potential to grow the cash value but there is no guarantee \hline \text { Jul 31 } & 25,500 C. Unilateral contract B. A. -age 100. Involuntary Risk If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. It requires evidence of insurability for renewal. Which of the following is the basis for a claim against an insurance policy? Which nonforfeiture option provides coverage for the longest period of time? Correct: B. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. Prepare a pie chart of on-time delivery performance for last month. (c) variable life insurance. When must insurable interest exist in a life insurance policy? Cash value is invested in the stock market. ? Flashcards - WA Life Law Practice Exam - FreezingBlue cash value increases while face value remains the same. 1) coverage is permanent -tax free accumulation of borrowing. B. Buy-Sell Agreements pay in the event of a medical emergency Where does group-life insurance come from? Breach of warranty \text{Less: Operating expenses}\\ Newborns after how many days become covered in a child rider? An insured becomes disabled at age 22 and can no longer work. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. a) More active. b. ch 7 Flashcards | Quizlet Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. What are the permanent working capital needs of your company? 3)according to the source of annuity income All of the following statements about the characteristics of Social Security are true EXCEPT A. Which of the following is an example of an unfair claims settlement practice? C. Waiver -marriage It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. When an applicant pays the initial premium the agent will give them a what? -receiving dividends(when declared) 1) Competent Parties A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. exclusions: when the accident occurs within an illness,disease, or mental infirmity. Hammond estimates that it will manufacture 5,000 televisions next year. In order for the contract or policy to be valid or legal? 3)Consideration Renew policy holder has an option- THE INSURER DOES NOT. b) Reduced paid-up d) Loss. 2. C. Premiums are tax deductible by the key employee (economy). When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? All of the following statements concerning coinsurance are true, EXCEPT . All of the following are true of insurance EXCEPT It transfers risk. II. D. The policy is a bilateral contract 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? 2) form of interest sensitive life insurance(current market conditions influence the cash value) 3) policy builds cash-value Yes, all T-mobile insurance plans cover water damage. _______ pays dividends to the stock holder. (a) universal life insurance. Originating policy a) Agent's report D. Agents report. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} (b) single-parent family. 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) They increase at an increasing rate. (d) They remain level. PracticeTest Flashcards by Gabriel Martinez | Brainscape d) Performing reviews of insured's coverage. 5)Explain when coverage begins ~~~\text{Advertising expense}&90,000\\ _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. B. IRS has no jurisdiction A __________ represents the insured. C. Solicit applications on the insurer's behalf Insurance is designed to cover both intentional and unintentional losses. Term life insurance provides the largest amount of coverage for the lowest amount of premium. 1 / 25. Arrest History. All of the following are common characteristics of this coverage EXCEPT 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? b) Hazard -car accident not in conjunction with an illness c) Counselor c. It is the failure to use ordinary care. \hline & \text { Jul 1 } & 55,000 \\ Free Chapter 1 - Tests.com 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. insured is always the borrower & the beneficiary=lender D. Aleatory contract This is called. Last year, the couple got divorced. 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". Instructions 2)administered charge 2)Foreign Insurer 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. An agent and an applicant for a life insurance policy fill out and sign the application. 2)collateral assignment-some or only one right assigned. All of the other statements are true. What happens when there is a Misstatement of age or sex? -Follows all conditions of contract & pays premium, -insurer says how policy works It is the specific cause of loss. The insurer that is transferring the risk to another company is called the ____________ __________. Who represents the insured when dealing with insurance companies? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). Predicted needs of the family after the insured's death Why?". D. Department of Treasury Which of the following is a physical hazard? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . b) The policy will not be affected. (Choose from the following options) 3)2 Death benefits-(level/increasing) \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ What are (4) characteristics of permanent insurance? c) An agent offers tickets to a baseball game as an inducement to buy insurance. What are (4) ways annuities are classified? \hline & \text { Jul 31 } & 19,500 \hline && \text { Jul 1 } & 65,000 \\ e. The total of costs recorded on all sales invoices for the month is$654,052.00. d) All of the above. To sell variable life insurance policies, an agent must receive all of the following EXCEPT Claim is still paid with an adjustment to the benefits. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. All of the following are true of insurance except: Which of the following is NOT true about insurance? Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue B) The plan is funded by permanent insurance only. 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 3)defined benefit plans considers Lloyds of London an Alien insurer b. B. Misrepresentation What is used for the underwriting department to determine insurability? Use the indirect method. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. ~~~\text{Direct labor cost}&190,000\\ _________ is a determination that a statement made as a warranty, or true. B) the applicant. What is the difference between renewable policy holder & Insurer? The policy is a contract of adhesion Who is responsible for making sure the application is completed properly and all necessary info is obtained? Cash value is the same as ___________ when the policy matures. Is interest always gained in Universal Life Policy? Which of the following about decreasing term insurance is true? She meets the definition of total disability under Social Security. d) Fiscal responsibility. 2)Variable annuity 3)2 death benefit option D. group credit insurance must have a suicide clause . The applicant has been shown to be a poor personal credit risk. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? C. Premiums are determined by age sex and occupation of each individuals certificate holder. d) Older. Level-increasing face value. ~~~\text{Depreciation on factory equipment}&31,000\\ D. An individual has an insurable interest in her or her own life. The cash value available to the policyowner Agents and producers must place business through an insurer with the lowest rated Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. &&\\ RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. A monthly deduction is made from a policy's cash value for the cost of insurance protection. Premiums are taxable to the employee D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. A Contract that binds only one party to future performance, is a (n): A. \\ 2)Explain and collect any ratings Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. 2)Decreasing term(premium is low) declining face value The insured agrees to maintain insurance equal to some specified percentage of the value of the property. D. Financial Experience. Group Life Insurance Flashcards | Chegg.com ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ C. Payment of premium D. Concealment Estate Creation B. ~~~\text{Utilities expense}&12,000\\ All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. A. Foregin Does T-Mobile Insurance Cover Water Damage? d) 50% tax on the amount not distributed as required. a) To limit the insurer's liability after the 2 year waiting period c) The policy will be voided. A policy that does not pay dividends to policyowners is a A. (a) I only (b) II only Signed waiver of premium Which of the following is NOT an allowable 1035 exchange? A) the agent. -Prepays portion of face amount if diagnosed with terminal illness. In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). B. Avoidance 3)substandard risk. Final practice questions Flashcards | Chegg.com D. Funding against general company financial loss ? ___________ is the persons whose death triggers payment. & &&\textbf{ Quarter } \\ 1.1K 64K views 1 year ago In this video I show you how to one shot Which of the following about yearly renewable term insurance is true? 3)Explain any riders or exclusion a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . don't pick binding receipt at all on test. One sided contract is a ______________ contract. b. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. Jul3117,000\begin{aligned} An annuity whose based on the stock market index? The failure to disclose known facts is what? Which type of risk involves the possibility of loss or gain? B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. Correct: C. Consideration. The issuance of a _________ is the result of the acceptance of an offer. b) The agent's report An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. ? All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. C. Certain Risk C) Completing pre-licensing training. D. Represent the insured's interest A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. Legal Purpose Round Tree has 100 Type I rooms and 120 Type II rooms. The money in a savings account All of the following are true about health insurance except: Correct: A. A. 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. C. Conditional contract (b) Most policies can be renewed without evidence of insurability. Credit life Tom and Nancy Boyle provide financial support for their two children. d) Paid-up option. (a) renewal provision A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. Receipt Which of the following best describes a surplus lines broker? c) Smaller. Daycare is considered to be among these expenses. In a car accident dealing with ADB who covers the passenger? Which of the following statements about universal life insurance is true? If a change in the application is necessary what is required? In this particular instance the applicant did not commit intentional fraud. Which is generally true regarding insureds who have been classified as preferred risks? 2) standard risk a) Offering additional coverage to clients -pay for certain time and stop c) Needs approach An insurance consultant CANNOT be which type of persons? -receiving dividends(when declared) Which term describes the probability of a loss? a) Withdrawals are not taxable. -the premiums are paid for a limited time only. 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? All of the following statements are true regarding mortgage protection insurance EXCEPT. Payor benefit/Clause is always a _________. II. 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? It is used to help adequacy and equity in rates. 1. DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36.
