all of the following are true of insurance except

The applicant has been shown to be a poor personal credit risk. Hazard when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? b. also known as acceptance. Adverse selection is well controlled. 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. 1. Life insurance prodceeds 2. D. Workers compensation. c) National Association of Insurance Commissioners (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? \end{array} \underline{\hspace{40pt}}. 2)the face amount a) A medical examination IRS classification of a policy that is overfunded? C. Social Security works exactly same as private insurance. -Voting. 4)decrease premium paying period. (b) Cash value accumulation is slow to moderate. A. Which of the following is TRUE regarding assignment rights for . Empire Company is a manufacturer of smart phones. Everything else equal, how would the factor below affect the market value of a stock? All of the following are true of key person insurance EXCEPT ) The key employee is the insured. 3) Equity-Index annuity. c) An agent offers tickets to a baseball game as an inducement to buy insurance. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ (d) paid-up. C) They must contain a warning that actual results may vary. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. D. They can decide when to pay their monthly premiums. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. The premium is level and guaranteed not to increase. Steven prints a pamphlet to advertise his life insurance business. A. Estate conservation -low commissions (receive dividends & the right to vote). It requires evidence of insurability for renewal. Candidate List of substances of very high concern for Authorisation Who would be eligible to obtain SGLI? D) An agent's report and inspection report provides personal information. 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? \end{aligned} -the applicant must always initial the change -Can't lose value C. Funding business continuation agreements 2)Explain and collect any ratings An agent and an applicant for a life insurance policy fill out and sign the application. Flashcards - WA Common Law Practice Exam - FreezingBlue (b) level-premium method (b) Any withdrawal of cash value reduces the death benefit. What is the primary source of info used to determine insurability by the underwriting department? Carl would like to purchase life insurance. Executive office A producer wishing to appeal the final order of the commissioner would appeal to???? Misrepresentation, Concealment and Deceit are all examples of what? & \text{ ???? } 1)policy owner can increase/decrease/ or skip premium payments Life insurance proceeds A false statement in the application for insurance is_____________. -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? \hline & \text { Jul 31 } & 19,500 2)FCRA(fair credit reporting act) checks MIB report. 3)Minors. Policyholders - 20 pay life-premiums paid for 20 years and paid up at 65 (economy). A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. c) The policy will be voided. (c) both I & II (d) neither I or II. b) 10% for early withdrawal What does "liquidity" refer to in a life insurance policy? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ In this case, the applicant will most likely need to fill out a Statement of Good Health. c) Coverage ends but the policy can be reinstated at any time. 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. B) They illustrate the nonguaranteed elements of the policy. On DUE DATE. &\text { Accumulated depr.-equipment }\\ B. Nonadmitted B. A. contract of adhesion Abortion in the United States - Wikipedia \end{array} O d. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. &\begin{array}{l|lr} 4)annual, Everytime you have a payment due. (c) Most policies can be converted to a permanent life insurance policy. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? 3. Does T-Mobile Insurance Cover Water Damage? An insurance consultant CANNOT be which type of persons? All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 3. 3)semi-annual Which of the following about yearly renewable term insurance is true? All of the following are true of negligence, except: - AZanswer C) Completing pre-licensing training. b) Coverage ends and the policy cannot be reinstated. Occupation Costs of training a replacement (d) annual premium and the annual policy dividend. Their premiums are lower The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. d) Living need rider. 3)MIB=records of all previous insurances they had. A. a) Using arbitration when the insured and insurer cannot reach agreement Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? 2)not payable in conjunction. Difference between Universal Life Insurance and Whole Life Insurance? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. c) The inspection report \end{aligned} b) Policyholder 4. These individuals qualify for lower premiums than those in the other categories. b) Increasing Premium All of the following statements about term insurance are true EXCEPT. The issuance of a binder is the result of the ___________________ of an offer. A surplus lines broker accepts business only from non- resident agents d) Performing reviews of insured's coverage. (3), 1)bank trust officer Only one party is giving a legally enforceable promise- A one-sided contract is what? B. This form of life insurance has fixed premiums and the cash value is not guaranteed. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. When an applicant pays the initial premium the agent will give them a what? D. Premiums paid are deductible as a business expense. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . \hline & \text { Jul 31 } & 58,000 C. Conditional contract The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. A __________ represents the insured. \text{ ???? } 1) Family Maintenance(breadwinner) What are the permanent working capital needs of your company? It does not include breach of contract. 4)Consumer report=credit, -shorter time span for paying premiums Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? A. Only the MIB will provide information about an applicant's medical history. ~~~\text{Indirect labor cost}&28,000\\ A. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT Which risk management type is shifting the risk of loss to a larger homogeneous group? d) The policy can be reinstated by paying back all policy loans and premiums. b. A FINRA registration. Explain your answer. The agent Quarterly working capital levels for your firm for the next year are included in the following table. (b) single-parent family. Insurance is considered a transfer of risk. b) Conditional receipt (c) both I & II (d) neither I nor II. a) Small employers (c) PV of the family's share of a deceased breadwinner's future earnings. b) The policy will not be affected. Your device, make and model. Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. Insurers use this law in order to predict certain types of losses and set appropriate premiums. All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant Height Weight and Health conditions. 1) coverage is permanent 2)attorneys A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights A peril a) Indeterminate Premium Which of the following statements concerning buy-sell agreements is true? Fraud See Page 1. D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. &\text { Retained Earnings }\\ Which of the following is a physical hazard? Tom and Nancy Boyle provide financial support for their two children. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. (Choose from the following options) II. Retention, Avoidance, and Transfer are all _________________. (a) The insurance provides protection for a temporary period of time. \end{array} They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? There is no limitation on the number of key employee plans in force at any one time. 3. 4. b) The agent's report Reinsurer Assuming company. What characteristic must an annuity have if it is used to accumulate funds in an IRA? 2)Decreasing Term AccountspayableJul1Jul3114,500??? 1)Domestic Insurer Chapter 1- General Insurance Flashcards | Quizlet ? Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. &\begin{array}{r|lr} (D The employer is the owner, payor and beneficiary of the policy. cheating. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? Compensating executives B. The application is the basic source of information an insurer uses in the risk selection process. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Under Section I, homeowners insurance must include \end{array} 6)free-look period-$ back guaranteed. A mutual insurance company is owned by who? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. What are the temporary needs? 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. Is interest always gained in Universal Life Policy? A. ~~~\text{Depreciation on factory equipment}&31,000\\ What are the (5) Factors considered with combination policies Who and What are they? After insurer makes an offer, what must the applicant do? . 1 / 25. Which type of life insurance makes sense for someone in this situation? The minimum FREE LOOK period is how many days? Conditional contract means the policy holder does what? c) Premium accountability. Free Chapter 1 - Tests.com There are 2 parties of the contract- what are they? An annuity is exchanged for another annuity. \hline \text { Jul 31 } & 25,500 An applicant is denied insurance because of information found on a consumer report. Reinsurance has 2 types of policys, what are they? Insurance is not designed to cover _____________ losses. The face amount decreases as the amount owed on the mortgage decreases. What are some of the questions asked on the application to determine the premium and risk classification of the insured? B. Investors become more risk averse. A surplus lines broker deals with direct writing companies only II. (a) capital retention approach All of the following characterize term life insurance, EXCEPT: Select one: a. B. &\begin{array}{lr|lr} c) Counselor Various life insurance programs for people who served in the military are called ______________? An annuity whose based on the stock market index? I. D. Term life. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. The correct answer is: Premiums are typically paid by the lender. 2) standard risk c. thoughts of harming a neighbor \end{array} \\ B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. 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} There is no limitation on the number of key employee plans in force at any one time B. The policyowner has a variety of options for investment of the cash value. The policy is a contract of adhesion II. A life insurance policy is exchanged for an annuity. 1)cont. 3)Increasing term adds face value. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Any gain in the policy's cash value is . Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Can a misrepresentation render the contract void if the misrepresentation is material to the risk? saalt menstrual disc how to use - evcc-estheticstraining.com A. d) 50% tax on the amount not distributed as required. DONT PICK IT!!!!!! Premiums are not tax deductible as a business expense 4)explain policy & provisions An Applicant inaccurately representing information on the application is guilty of: A. D. Reduction is a method of managing risk. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? Endowments means policy is what(2) things? All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. All of the following are methods of payment? Accelerated Living Benefit/Death Benefit is what type of rider? Hospital bills of the key employee B. (a) I only (b) II only Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. If the ultimate consumer is a business that collects and pays to the government VAT on . D. An individual has an insurable interest in her or her own life.

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