all of the following are true of insurance exceptark breeding settings spreadsheet

Level-increasing face value. B. IRS has no jurisdiction a) Tax-qualified The CAS number shown in an entry is typically . Upon policy delivery, the producer may be required to obtain any of the following EXCEPT CPI (consumer price index) without evidence. B. Beneficiarys age 2)premium gets lower. \hline & \text { Jul 31 } & 19,500 D. Concealment The shifting of risk of loss to a larger homogeneous group is known as what? (a) Evidence of insurability is not required to renew the coverage. The following are all true regarding risk management, except: A. Correct: B. Life insurance proceeds _____________ is a statement that is true to the best of the persons knowledge that is making the statement. b. it frequently includes coverage for losses due to casualty and theft. a) A medical examination 4. D) Claims result from losses by a peril insured against in an insurance policy. See Answer. &\begin{array}{lr|rr} -pays an additional death benefit if the insured dies from an accident b) Policyholder & \text{ ???? } It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. 2)APS=medical records IRS classification of a policy that is overfunded? Social Security is designed to provide a base of economic security B. 1)premium payment b. D. The ratings are available to the public C. group credit life insurance does not build cash values. A) They must be given to all Life insurance applicants. A mutual insurer has no stock, and is owned by the policyholders. -birth of child. 3)low premiums. d) Living need rider. The benefit is subject to the exclusionary rule D. Speculative Risk \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 3) type of plan they applied for. a) More active. 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. -Prepays portion of face amount if diagnosed with terminal illness. Something of value is a __________________. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. \hline & \text { Jul 31 } & 58,000 (d) endowment insurance, Rachel needs permanent life insurance. c) Increases annually. A. c) Whole Life d) The Medical Information Bureau. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. There are 2 parties of the contract- what are they? A. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? A _______ __ is the additional premium needed to get covered with high or substandard risk. 2)people under the influence of drugs or alcohol 2. d) Older. (d) annual premium and the annual policy dividend. Health insurance decreases your healthcare costs. C. Solicit applications on the insurer's behalf Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? Occupation 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? A. All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. 1. Which of the following is an example of liquidity in a life insurance contract? Which of the following best illustrates a A. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. 3. -paying for certain time and stop. Investors become more risk averse. 3)premium is collected A. C. Premiums are tax deductible by the key employee B. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. Who appoints the state insurance regulator in many states? B) The parent is responsible for the premium. d) All of the above. Misrepresentation, Concealment and Deceit are all examples of what? A corporation is the owner and beneficiary of the key person life policy. c) A person who handles assets or money belonging to others. B. Misrepresentation B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. Can term insurance be both renewable and convertible? Be prepared to justify your answer. (Medic Information Bureau)? It is used to pay off the balance on the mortgage. A. Foregin -the premiums are paid for a limited time only. Nature of risk C. Hazards D. Viatical settlement. What is the MIB? D) adding cost of living coverage. The policy is a conditional contract -provides income for retirement 1) premium schedule differ from whole life -then picks a contract. Height Weight and Health conditions. Which of the following statements concerning buy-sell agreements is true? D. Delivery receipt. -ages 25,28,34,37,40 Agents and producers must place business through an insurer with the lowest rated b) State attorney general A debtor has insurable interest in the life of a lender This type of life insurance is called \text{Inventory} & 201 & 505 & 905 & 52 \\ a. whole life paid at 65 (d) Most policies have a CV that is refunded when coverage ceases. \text{Less: Operating expenses}\\ *The insured is diagnosed with terminal & chronicle illness An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. II. 3)Family Policy(Limited but all fam members paid) The storage of flammables in a fireproof container. 3. For example, a claim will be paid only is there has been a covered loss. All of the following are true of insurance EXCEPT It transfers risk. C) Completing pre-licensing training. &\text { Accounts receivable }\\ 3)Alien Insurer. The issuance of a _________ is the result of the acceptance of an offer. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Contract or form of ownership is a ______________? B) the applicant. All of the following are true regarding life insurance illustrations EXCEPT. B. Avoidance Involuntary Risk (3), WHat is the difference between universal and whole life policies? -policyowners right provision DONT PICK IT!!!!!! 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? Type I rooms do not have wireless Internet access and are not available for the Business rental class. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. Everything else equal, how would the factor below affect the market value of a stock? B) Underwriters. B. Adverse selection is well controlled. The person who receives the benefit when insured dies. 3)Rider expires 60,65,75. Its controller resigned in October 2017. What does "liquidity" refer to in a life insurance policy? C. The policy is an aleatory contract Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. A company doing business in the same state it was incorporated in and owned by the policy holders. B. and is NOT a party to the contract. Liquidity in life insurance refers to availability of cash to the insured. 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. d) Blackout approach. Endowments means policy is what(2) things? A key person insurance policy can pay for which of the following? d) Paid-up option. also known as acceptance. (b) variable life insurance c) 15% for early withdrawal All of the following statements concerning coinsurance are true, EXCEPT . 2)Increase the face value They keep a high percentage of any interest earned on their policies -greater potential to grow the cash value but there is no guarantee C. Whole life Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. How does having children affect the decisions that couples must make when considering a divorce? &\text { Accumulated depr.-equipment }\\ 2)Variable annuity An agent and an applicant for a life insurance policy fill out and sign the application. B. In a car accident dealing with ADB who covers the passenger? One sided contract is a ______________ contract. 1. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. It is the specific cause of loss. c) Variable Premium All of the following statements about term insurance are true EXCEPT. c) Premium accountability. B. Buy-Sell Agreements pay in the event of a medical emergency ? \underline{\hspace{40pt}}. (c) both I and II RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. -Not a true insurance company The insurer that is transferring the risk to another company is called the ____________ __________. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. Which of the following documents must be provided to the policyowner or applicant during policy replacement? Members are assessed to fund the corporation. B. Twisting All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. A. 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. Funding against financial loss caused by the death of a key employee Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. All of the following are methods of payment? (b) Face amount decreases during the policy period, but premiums remain level. c) Smaller. \text{ ???? } Contract of adhesion b) Universal Life Coverage is available in $50,000 increments up to the maximum of $400,000. b) 10% for early withdrawal Is interest always gained in Universal Life Policy? An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. C. Consideration c) Counselor All of the following statements about the settlement of a claim are true EXCEPT. (2), 1)HIPPA The insured agrees to maintain insurance equal to some specified percentage of the value of the property. What constitutes the acceptance of an offer? A) loss reserves 2. (a) Interest is credited monthly to a policy's cash value. 4)settlement options, 1)stand alone policy c) Policy loans are taxable distributions. Misappropriation or illegal withholding of the policyholder's money. b. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. A. What are (4) characteristics of permanent insurance? \hline (\$ 000) & 1 & 2 & 3 & 4 \\ c) Guides describing company financial integrity When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? D. The face amount remains the same throughout the life of the policy. 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. Costs of training a replacement -A Mec will receive unfavorable tax treatment a) The policy can be converted to term coverage. The minimum FREE LOOK period is how many days? Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. (c) both I & II (d) neither I or II, Diane is a single parent. -sex doesn't determine eligibility. The 7 paytest is used to determine if a policy is a _______? See Answer. Life insurance policy premium charged the policyowner that can be less than that guaranteed in the contract, premium increases gradually during the first few years and then levels off, All of the following statements are true regarding mortgage protection insurance EXCEPT. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? In this particular instance the applicant did not commit intentional fraud. &\text { Retained Earnings }\\ Signed waiver of premium 4)Consumer report=credit, -shorter time span for paying premiums If the initial premium is not paid with the application, the agent will be required to collect the premium at the time of policy delivery. (a) universal life insurance. (economy). What is a statement in the application guaranteed true in all respects? Which is generally true regarding insureds who have been classified as preferred risks? Exclusions always exist, and there is a reason for each one. Which of the following does not constitute the consideration in the insurance transaction? 1) All requirements are met 1)temporary O c. The policyowner has the option of investing the cash value in several investment accounts. Correct: B. Empire Company is a manufacturer of smart phones. What is the purpose of a suicide provision within a life insurance policy? C. Tax Status a) The policyholders or stockowners of the company 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???? ~~~\text{Rent on factory facilities}&60,000\\ \end{aligned} Whats the "take it or leave it contract"? O b. Last year, the couple got divorced. An insurance consultant CANNOT be which type of persons? When a policy is non-contributory how much is paid? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Your device, make and model. ~~~\text{Advertising expense}&90,000\\ Quarterly working capital levels for your firm for the next year are included in the following table. has reached its final destination and can be paid out in full. 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. -cash value options 2)interest sensitive Round Trees management makes a forecast of the demand by rental class for each night in the future. Why?". D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. 3)Consideration The premium is level and guaranteed not to increase. Which of the following statements about endowment policies is true? When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? (c) They decrease at a constant rate. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 2) Binding Reciept. C. Application All of the following are business uses of life insurance EXCEPT c. Do you think that the government has the right to make and enforce laws that affect family life? The applicant has been shown to be a poor personal credit risk. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? 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 Which of the following about decreasing term insurance is true? 2) profits are returned as dividends B. B. -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? (a) I only (b) II only Predicted needs of the family after the insured's death 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. An agent has authority to do all of the following, except: A. Countersign insurance contracts 4)defined contribution plans. Pertaining to insurance, what is the definition of a fiduciary responsibility? &\begin{array}{l|lr} D. Term life. 17,000, InventoryJul122,000???? 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . a) Indeterminate Premium \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ b. * 50% is paid All of the following statements about ordinary life insurance are true EXCEPT. 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. \hline \text { Jul 1 } & 22,000 \\ Life insurance prodceeds c) Fixed premium 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same \hline \text { Jul 31 } & 25,500 Nonparticipating policy. Correct: B. insurable interest must exist. 4)underwriting is complete -usually mutual fund security A surplus lines broker deals with direct writing companies only b) Outline of coverage Most insurance policies contain a specific limit that an insurer will pay for a single claim. D. group credit insurance must have a suicide clause . a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. -has cash value invested in the stock market Rates. Any gain in the policy's cash value is . \end{array} A whole life insurance policy is exchanged for a term insurance policy. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? D. Funding against general company financial loss c) The inspection report b) Adjustable life 2)explain any ratings 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. 3. Joe, Larry, and Curly own a small business. The cash value available to the policyowner Life expectancy has increased in the U.S. over the last century. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. The ___________ controls all rights of the contract. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Compute DVDs net cash provided by (used for) operating activities during July. 2) form of interest sensitive life insurance(current market conditions influence the cash value) II. b) Increasing Premium Statements in the application that are guaranteed true but later found to be false may result in what? good health B. All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Accidental Death Benefit (b) Most policies can be renewed without evidence of insurability. c) Denying coverage after a reasonable investigation has been conducted Which of the following is NOT an allowable 1035 exchange? \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ What is NOT invested in the stock market but pays you interest? D. An individual has an insurable interest in her or her own life. a) Remains level. 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 Premiums are taxable to the employee AccountspayableJul1Jul3114,500??? a) No penalties, since the owner is older than 59 All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. don't pick binding receipt at all on test. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. 1 / 25. Round Tree has 100 Type I rooms and 120 Type II rooms. What are the temporary needs? 2)standard-average When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. 3)they provide insurance to members. -If the insured dies, the policy payed out the PRINCIPAL SUM C. It's a decreasing term insurance. \end{array} \\ Benefits received are considered income taxable c. Premiums may be raised at renewal d. Group term insurance may cover the . Which of the families below is likely to have the least need for a large life insurance policy? Who represents the insured when dealing with insurance companies? What is an exchange of a whole entire life policy for another? 1) cash value earns interest Jul3125,500\begin{aligned} B. Aleatory contract All of the following statements about term insurance are true EXCEPT. d) Fair Credit Reporting Act. A __________ represents the insured. Which of the following would provide an underwriter with information concerning an applicant's health history? C. Funding business continuation agreements 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. A. In an insurance contract, the value that each party gives the other is called the: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? - 20 pay life-premiums paid for 20 years and paid up at 65 The companys president is concerned about the accuracy of the income statement. 3)2 death benefit option A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Their premiums are lower An insured owns a life insurance policy. 2. Limited-Pay Life & Single-Premium Policies? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). (d) neither I nor II. insured is always the borrower & the beneficiary=lender d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Which of the following about a VUL insurance policy is (are) true? (c) two-income earner family. 4. As her friend, you have been asked to review the income statement and make necessary corrections. ____________ insurer is not a type of insurer. Only one party is giving a legally enforceable promise- A one-sided contract is what? An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. 25,500, AccountspayableJul114,500???? d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer.

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