There are 2 parties of the contract- what are they? A SEC registration. (a) limited-payment whole life insurance 2)Increase the face value
b) Human life value approach -age 100. All The statements made on the application are called ______? 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. *Both not taxable. \end{aligned} I. B. All of the following would be considered to be rebating EXCEPT -below market interest rates on borrowing
An insured becomes disabled at age 22 and can no longer work. Which of the following statements is not correct regarding rates and premiums? -car accident not in conjunction with an illness
What happens when there is a Misstatement of age or sex? C. Unilateral contract (b) The face amount of the policy is paid if the insured lives to age 65. 2)face amount is set
A. She meets the definition of total disability under Social Security. A monthly deduction is made from a policy's cash value for the cost of insurance protection. 2)attorneys
Which of the following best describes a surplus lines broker? S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. \end{array} Yes, all T-mobile insurance plans cover water damage. a) To limit the insurer's liability after the 2 year waiting period c) Comparisons with similar policies &\begin{array}{lr|lr} How do premiums for yearly renewable term insurance change as an insured gets older? (c) The number of times the coverage can be renewed is limited. A.
C. A husband or wife has an insurable interest in their spouse C. Insured's annual expenses 2) Transferring the risk
(Medic Information Bureau)? A. & \text { Depr } & 3,000 \\ b) To deter the policyowner from committing suicide The CAS number shown in an entry is typically . The 7 paytest is used to determine if a policy is a _______? Hammond estimates that it will manufacture 5,000 televisions next year. 5)Explain when coverage begins
The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. On DUE DATE. Business partners have an insurable interest in each other &\begin{array}{cr|} All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. A peril Upon policy delivery, the producer may be required to obtain any of the following EXCEPT (b) Any withdrawal of cash value reduces the death benefit. 4)Explain the policy and its provisions
The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. D. Claim History CashJul1Jul315,500???? b) The agent's report An applicant is denied insurance because of information found on a consumer report. -usually mutual fund security
d) The Medical Information Bureau. (c) variable life insurance. C. Solicit applications on the insurer's behalf D. Premiums are tax deductible as a business expense, B. D. They can decide when to pay their monthly premiums. D. Financial Experience. \end{array} Premiums are not tax deductible as a business expense 2)Explain and collect any ratings
d) Military personnel. C. It's a decreasing term insurance. 3) policy builds cash-value
When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. \end{aligned} All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. How has the Aswan High Dam affected the lives of Egyptians? Pure Risk. The applicant accepts the invitation by paying the ___________. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? (a) Interest is credited monthly to a policy's cash value. A FINRA registration. B. Misrepresentation 2)Family Income(decreasing term-policy)
What are some of the questions asked on the application to determine the premium and risk classification of the insured? Estate conservation 2)standard-average
c) Copy of the original application D. Premiums paid are deductible as a business expense. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. b. it frequently includes coverage for losses due to casualty and theft. d) Loss. A. 1)Domestic Insurer
C. Hazards Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific 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. Explain your answer. \text{ ???? } 4)explain policy & provisions
Which term describes the probability of a loss? b) The policy will not be affected. The applicant's medical background is addressed in Part 2 - Medical Information. What are the two options in death benefit options? B. a. mentally counting backward from 1,0001,0001,000 4)underwriting is complete
He would also like to invest in a mutual fund. Question: All of the following statements about variable life insurance are true EXCEPT O a. After Alex has made 20 premium payments, his life insurance policy is considered 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. A. signed waiver of premium ________________ are the person who receives benefits payable upon death. 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) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . -If the insured dies, the policy payed out the PRINCIPAL SUM
2)quarterly
Involuntary Risk \end{aligned} -The insurance dept. (d) Premiums increase at an increasing rate upon renewal. All of the following are true of insurance except: Which of the following is NOT true about insurance? A. 2)administered charge
Who is responsible for making sure the application is completed properly and all necessary info is obtained? D. Term life. The replacing company notifies the replacement company. 1. Round Tree has 100 Type I rooms and 120 Type II rooms. D. Speculative Risk \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ Conditional Contract &\text { Accumulated depr.-equipment }\\ (b) Cash value accumulation is slow to moderate. What is a statement in the application guaranteed true in all respects? O c. The policyowner has the option of investing the cash value in several investment accounts. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? A life insurance policy is exchanged for an annuity. c) Increases annually. Exclusion Categories 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. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. C. Risk (c) face amount of the policy and the legal reserve. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. d) The insurer will sue the insured for committing fraud. Empire Company is a manufacturer of smart phones. Can term insurance be both renewable and convertible? The issuance of a binder is the result of the ___________________ of an offer. (b) tax-free exchange provision Nature of risk An insured is driving her automobile and strikes a large pothole that . All of the following are business uses of life insurance EXCEPT 1) Avoiding the risk
After everything is signed & premium is collected What does the agent give to the policy holder? d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Which model is the better fit for the data? What happens when a policy is surrendered for its cash value? c) The policy will be voided. B) Underwriters. b) Larger. 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 C. The benefit is received as taxable income D. Department of Treasury What is the purpose of a suicide provision within a life insurance policy? c) Low-income individuals and families Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. D. The policy is a bilateral contract the underwriting process is approved for:
Whats the cheapest type of permanent insurance? ADD( Accidental death and dismemberment??? \text{Sales revenue}&&\$780,000\\ 1)Level
a) Because the insured is currently not a drug user, his policy will not be affected. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. Which of the following is the basic source of information used by the company in the risk selection process? If a change in the application is necessary what is required? If there Is a risk of financial loss then there is a what? -cash value options
B) The plan is funded by permanent insurance only. If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. Estate Creation B. B. -receiving dividends(when declared)
Correct: A. The policy is a contract of adhesion. 1)physical exam
Waive the premium if the INSURED becomes totally disabled. This method of estimating . d) Older. 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. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. \end{array} 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 C. Department of State A. It is used to pay off the balance on the mortgage. 3) Equity-Index annuity. (a) present value of future benefits and the present value of future premiums. d) 15 years. The correct answer is: The premium decreases to zero by the end of the policy period. 3) Increasing Term. 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. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. A securities license. It is a type of tort. a. Hazard C) the proposed insured. What does it mean when a policy is limited pay life? 2)Decreasing term(premium is low) declining face value
The primary purpose of buying an annuity is? (b) Face amount decreases during the policy period, but premiums remain level. ~~~\text{Depreciation on sales equipment}&45,000\\ AccountspayableJul1Jul3114,500??? _______ pays dividends to the stock holder. Life insurance proceeds B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. B. What must exist at the time of the application? 3. d) All of the above. ? When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? (Hint: Take a look at the Theory of Reasoned Action.). A policy summary usually includes all the listed information, and must be delivered along with a new policy. Prior to October 2017, the company had been profitable every month. Who assumes control over an insurance company's funds and management if it becomes insolvent? -tax free accumulation of borrowing. D. Agents report. When does the grace period begin and how long is it? Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Arrest History. (b) variable life insurance The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Rates (a) I only (b) II only (a) I only What is NOT invested in the stock market but pays you interest? 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? II. Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. 1)policy owner can increase/decrease/ or skip premium payments
An Insurance Broker is responsible for what? C. The death benefit paid to the beneficiary - 20 pay life-premiums paid for 20 years and paid up at 65
An insurance company that was incorporated in a different state it is doing business in and pays dividends to its policyholders is known as a _________. b. Increasing term Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. A __________ represents the insured. Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? \hline & \text { Jul 1 } & 55,000 \\ (d) indeterminate-premium whole life. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? b) Failure to promptly settle a claim when liability has been clearly established It requires evidence of insurability for renewal. Jul313,000\begin{aligned} Correct: C. Condition contract, enforceable only under certain conditions. C. Waiver All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. Round Trees management makes a forecast of the demand by rental class for each night in the future. Prepare a pie chart of on-time delivery performance for last month. The remaining amounts should be charged to selling and administrative activities. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. When an agent collects the initial premium from the applicant, the agent should issue the applicant a.