d) 15 years. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. -ages 25,28,34,37,40 Which of the following about a VUL insurance policy is (are) true? Statements in the application that are guaranteed true but later found to be false may result in what? -age 100. Most agents try to collect the initial premium for submission with the application. \end{aligned} _________ is a determination that a statement made as a warranty, or true. The correct answer is: Maggie's Piano Studio with 1 employee. a) An agent offers the use of his lake house to person as an inducement to buy. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. Most policies can be renewed for additional periods without evidence of insurability. c) Coverage ends but the policy can be reinstated at any time. Beneficiary's age (a) blended family. 3)defined benefit plans Misrepresentation, Concealment and Deceit are all examples of what? When a New York insurance agent or broker advertises services, he/she must list the full name of the insurer and the name of the city, town, or village that houses the principal office. a) Premium amounts and surrender values Pro rata liability applies. d) Policy dividends. 2)can be sold as a rider to a whole-life policy. AKA-payout phase. \hline \text { Jul 1 } & 22,000 \\ 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. b) Outline of coverage Agents and producers must place business through an insurer with the lowest rated When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? Which of the following statements is not correct regarding rates and premiums? c) Smaller. The 7 paytest is used to determine if a policy is a _______? (must exist at the time of application). Buy-sell agreements are normally funded with a life insurance policy. Term. An annuity whose based on the stock market index? A ____ contract requires that both parties perform certain duties. 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. There is no limitation on the number of key employee plans in force at any one time B. B. Modification to a policy is a _______________? By William Lb Qtjetjx, Author of . B. A. ~~~\text{Rent on factory facilities}&60,000\\ It does not include breach of contract. A conditional or binding receipt is given when an applicant does what? B. ______________ is defined as restoring the insured to the same financial condition as before the loss. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. C. The insurer is always required to pay the . A. An__________ represents the insurer. The 4 characteristics of a universal life policy are? D) Claims result from losses by a peril insured against in an insurance policy. \end{array} -But pays you interest, 1)Fixed annuity It is a type of tort. Which of the following is true regarding the beneficiary designation of the former spouse. D. Funding against general company financial loss. D. Alien D. Financial Experience. A. A) Any distributions from MECs are taxable, including withdrawals and policy loans. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 2)Straight Life All of the following are true of negligence, except: a. Whats the cheapest type of permanent insurance? 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? D. Breach of warranty What are the (5) Factors considered with combination policies Who and What are they? An insurance consultant CANNOT be which type of persons? B. Nonadmitted Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). All of the following are true of key person insurance EXCEPT ) The key employee is the insured. D. Solicit applications on insurer's behalf b. The 3 categories of private insurers site of incorporation? 2)explain any ratings b) An agent offers to share his commission with a policyholder. 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. Which of the following statements concerning buy-sell agreements is true? a) Agent's report 4)policy matures at age 100. When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? a) Payor rider. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 25,500, AccountspayableJul114,500???? A life insurance license. For this amount of production, total factory overhead is estimated to be $396,000.00. Represent the insured's interest (b) level-premium method 2)quarterly B. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. CPI (consumer price index) without evidence. Insurance is not designed to cover _____________ losses. Increasing term (c) both I & II (d) neither I or II. Foreign. &\text { Cash }\\ The County is administered by a five-member Board of Supervisors who are elected for four-year terms a) Remains level. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. C. Application C. Buy-Sell agreements are normally funded with a life insurance policy C. A surplus lines broker deals with direct writing companies only Your device, make and model. 3)Family Policy(Limited but all fam members paid) Tom and Nancy Boyle provide financial support for their two children. 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? Term life insurance provides the largest amount of coverage for the lowest amount of premium. 2. All of the following are common characteristics of this coverage EXCEPT d) Contingent. 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. Be prepared to justify your answer. Appoint a solicitor as his or her representative Any gain in the policy's cash value is . (c) Most policies can be converted to a permanent life insurance policy. Conviction of a felony involving moral turpitude. c) Disclosure rule (a) I only The CAS number shown in an entry is typically . Which of the following about decreasing term insurance is true? b) Larger. &\begin{array}{lccc} c) Premium accountability. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? Dividends received by policyholders of a mutual insurer are not taxable. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. B. B. All of the following information about a customer must be used in determining annuity suitability EXCEPT Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. Renew policy holder has an option- THE INSURER DOES NOT. It is most appropriate when an insured needs lifetime protection. *Both not taxable. Who might receive dividends from a mutual insurer? (a) I only (b) II only B. -pay for certain time and stop A person cannot buy insurance unless that person is in a position to suffer a financial loss. b) State attorney general Contract or form of ownership is a ______________? may not be altered by an agent and must clearly state that it is not part of the contract. -Not invested in stock market A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called What is the difference between renewable policy holder & Insurer? An insurer that is incorporated in the same state that they are doing business in is a_____________.? - Limited Pay Life Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? Round Tree has 100 Type I rooms and 120 Type II rooms. 1) Avoiding the risk b) 10% for early withdrawal A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. when the applicant/owner is not the insured-3rd party a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. InventoryJul1Jul3122,000???? 4. \end{aligned} A SEC registration. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. B. Marital Status Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? 1) a policyholder votes on the Board of Directors Yes, all T-mobile insurance plans cover water damage. C. Department of State Can a misrepresentation render the contract void if the misrepresentation is material to the risk? True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles 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???? (d) paid-up. A mutual insurer has no stock, and is owned by the policyholders. c) Term life (d) Premiums increase at an increasing rate upon renewal. What is the term for a cause of loss, such as the theft of a car? Who assumes control over an insurance company's funds and management if it becomes insolvent? 2)non-qualified plans WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. 3) Increasing Term. c. Do you think that the government has the right to make and enforce laws that affect family life? 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. 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? The shifting of risk of loss to a larger homogeneous group is known as what? AccountspayableJul1Jul3114,500??? D. Offer -cash value options Which of the following best describes a surplus lines broker? B) They illustrate the nonguaranteed elements of the policy. (Choose from the following options) 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? D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. -receiving dividends(when declared) A) They must be given to all Life insurance applicants. ___________ is the persons whose death triggers payment. If company pays dividends, then they are a? Which of the following best illustrates a The benefit is subject to the exclusionary rule What happens when a policy is surrendered for its cash value? d) Graded Premium. For example, a claim will be paid only is there has been a covered loss. &&\\ D. An individual has an insurable interest in her or her own life. C) common stock 4. 3)substandard risk. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? A whole life insurance policy is exchanged for a term insurance policy. ~~~\text{Depreciation on factory equipment}&31,000\\ Non-Participating (stock) Life Insurance Policy. B. Buy-Sell Agreements pay in the event of a medical emergency What type of policy does the insured most likely have? Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Annually renewable term policies provide a level death benefit for a premium that Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. The minimum FREE LOOK period is how many days? 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? The applicant accepts the invitation by paying the ___________. Who appoints the state insurance regulator in many states? Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. Whole life policy. The policy's cash value grows as the investments grow. Accelerated Living Benefit/Death Benefit is what type of rider? -sex doesn't determine eligibility. -insured can stop paying premiums at certain age or after a period of time One sided contract is a ______________ contract. All of the following statements about term insurance are true EXCEPT. ? Exclusions always exist, and there is a reason for each one. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary?