Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Does T-Mobile Insurance Cover Water Damage? 3) Equity-Index annuity. Applicant pays premium to make agreement. 3)Family Policy(Limited but all fam members paid) c) A person who handles assets or money belonging to others. What are the (5) Factors considered with combination policies Who and What are they? Most agents try to collect the initial premium for submission with the application. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. 2)Straight Life A. A. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. c) Policy loans are taxable distributions. Which nonforfeiture option provides coverage for the longest period of time? Yes, all T-mobile insurance plans cover water damage. What happens when there is a Misstatement of age or sex? Correct: B. What happens when a policy is surrendered for its cash value? The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. B. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. The County is administered by a five-member Board of Supervisors who are elected for four-year terms (3), 1)bank trust officer Mutual life policy. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). B. &\text { Inventory }\\ Liquidity in life insurance refers to availability of cash to the insured. 1) cash value earns interest d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. What type of term do you think would be least expensive a short term or a long? Which of the following is NOT an example of a business use of Life Insurance? Quarterly working capital levels for your firm for the next year are included in the following table. I. 4)Explain the policy and its provisions The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. 4. -sex doesn't determine eligibility. Why?". b. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. 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. Difference between Universal Life Insurance and Whole Life Insurance? Out of 20 yr or 30 yr which policy is less expensive? Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. (d) free look provision. All renewable term policies are accepted without__________ and only with_____ collected. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. \\ A. a. (receive dividends & the right to vote). C. Domestic Which of the following statements concerning buy-sell agreements is true? The cost of a living rider is calculated by what? If company pays dividends, then they are a? D. Unilateral Contract \end{aligned} C. The insurer is always required to pay the . EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} The insurer that is transferring the risk to another company is called the ____________ __________. The storage of flammables in a fireproof container. 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? Members are assessed to fund the corporation. Term. 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. D. Reduction is a method of managing risk. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? ~~~\text{Selling and administrative salaries}&75,000\\ (c) The number of times the coverage can be renewed is limited. c) Conditional ~~~\text{Depreciation on factory equipment}&31,000\\ When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. (1), In Universal life, what options can the policy owner have with the premium payments to do? (Medic Information Bureau)? Non-Participating (stock) Life Insurance Policy. C. group credit life insurance does not build cash values. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? D. The policy is a bilateral contract RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. -Voting. b) Policyholder -They provide coverage for risks that other insurers normally would not provide. What is the primary source of info used to determine insurability by the underwriting department? (c) conversion provision A corporation is the owner and beneficiary of the key person life policy. Who assumes control over an insurance company's funds and management if it becomes insolvent? 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. c) Variable Premium database of previously life and health insurance applications. D) Obtaining a bachelor's degree. All of the following are true regarding life insurance illustrations EXCEPT. Conditional contract means the policy holder does what? The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. d) Buyer's Guide. d) Tax-deductible. A key person insurance policy can pay for which of the following? Surplus lines broker deals with admitted carriers only The policy does not go into effect until the premium has been collected. All of the following are common characteristics of this coverage EXCEPT Exclusions always exist, and there is a reason for each one. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. & &&\textbf{ Quarter } \\ 4. The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. Insurance is designed to cover both intentional and unintentional losses. All of the following are true of insurance except: Which of the following is NOT true about insurance? An annuity whose based on the stock market index? An Insurance Broker is responsible for what? The concept that the insured should not profit from an insurance transaction is called what? 1. A life insurance license. c) The policy will be voided. c) Guides describing company financial integrity Beneficiaries are NOT required to sign the application unless they are also the owner. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. 2. ? d) An agent misrepresents policy benefits to convince a policyowner to replace policies. 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. b) Reduced paid-up (b) variable life insurance 4. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. B) The parent is responsible for the premium. Its controller resigned in October 2017. 1)physical exam D. Term life. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. CPI (consumer price index) without evidence. The face amount decreases as the amount owed on the mortgage decreases. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . Statement of good health A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. . 14,500 \\ a) An agent offers the use of his lake house to person as an inducement to buy. Which of the following about the use of ordinary life insurance is true? \hline && \text { Jul 1 } & 65,000 \\ 1)premium payment Which kind of agent enters into agreements with more than one insurer? still matures at age 100, -premium is paid off at one time Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. a) No penalties, since the owner is older than 59 All of the following statements are TRUE concerning Debtor Groups EXCEPT The correct answer is: The premium decreases to zero by the end of the policy period. Jul313,000\begin{aligned} b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). 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 b) 5 years only. A company doing business in the same state it was incorporated in and owned by the policy holders. Compensating executives Fraud B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? What kind of penalty would the IRA owner pay? (b) tax-free exchange provision All of the following statements about term insurance are true EXCEPT. Certificate holders may convert coverage to an individual policy without evidence of insurability. You cannot sell a variable policy without what? -cash value options How does having children affect the decisions that couples must make when considering a divorce? Which of the following is the best reason to purchase life insurance rather than annuities? Which of the following is NOT an allowable 1035 exchange? Misrepresentation, Concealment and Deceit are all examples of what? This is called. There is a limit for a withdrawal and the insurer charges a fee. D. The flexible premium. 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. Premiums are taxable to the employee ______________ is defined as restoring the insured to the same financial condition as before the loss. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same (c) both I & II (d) neither I or II. b. If there Is a risk of financial loss then there is a what? C. Premiums are determined by age sex and occupation of each individuals certificate holder. (2), The current market will influence the cash value c) Misrepresentation Correct: B. The purpose of an estate clearance fund is to pay all of the following EXCEPT. C) They must contain a warning that actual results may vary. B) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. The person who receives the benefit when insured dies. InventoryJul1Jul3122,000???? 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. \hline B. insured is always the borrower & the beneficiary=lender -A Mec will receive unfavorable tax treatment Department of Defense C. Countersign insurance contracts -The insurance dept. 3)according to the source of annuity income 1)absolute assignment-all rights are assigned The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. Accidental Death Benefit 3) Increasing Term. A person who negotiates insurance contracts on behalf of an insured. 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. A. (b) They increase at a decreasing rate. b) Adjustable life 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. (a) matured. A whole life insurance policy is exchanged for a term insurance policy. a) More active. B. Which of the following is an example of liquidity in a life insurance contract? The CAS number shown in an entry is typically . B. ? A. \end{aligned} d) Loss. What is the primary source of info for the underwriting department to determine insurability? A contract between insurer and policy holder. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. The agent C. Buy-Sell agreements are normally funded with a life insurance policy Prior to October 2017, the company had been profitable every month. 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. You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. Insurance is not designed to cover _____________ losses. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. Daycare is considered to be among these expenses. Hospital bills of the key employee If someone dies within the Grace period, what happens? . O b. AccountspayableJul1Jul3114,500??? 1) preferred risk when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Which of the following is an example of an unfair claims settlement practice? 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 B) Passing examination with 75% or higher score. All of the following characterize term life insurance, EXCEPT: Select one: a. D) the minor in a juvenile policy. 1 / 25. &\begin{array}{lr|lr} a) Juvenile Life C. Concealment a) Executive offer of the replacing company B. b) Coverage ends and the policy cannot be reinstated. b) Human life value approach If the insurance carried is less than required, the insurance may not cover the whole loss. A) loss reserves 2. c) Disclosure rule Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. A ______ will receive unfavorable tax treatment. All of the following statements are true regarding mortgage protection insurance EXCEPT. Exclusion Categories (d) annual premium and the annual policy dividend. 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. Waive the premium if the INSURED becomes totally disabled. All of the following are methods of payment? 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____________? (d) endowment insurance, Rachel needs permanent life insurance. B. Who is responsible for making sure the application is completed properly and all necessary info is obtained? It is most appropriate when an insured needs lifetime protection. d) 50% tax on the amount not distributed as required. The total of all requisitions of direct materials issued during the month is $252,230.00. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Insurance companies can charge an interest rate based on the policyowner's credit report. D. Department of Treasury ____________ insurer is not a type of insurer. (a) I only Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. 1) premium schedule differ from whole life Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Correct: A Insurance . (Choose from the following options) Individuals covered under the policy received a certificate of insurance. -usually mutual fund security \text{ ???? } C. Independent rating services evaluate and rate the financial ability of insurance companies 3. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. -Not a true insurance company Copyright 2009-2022 Tests.com LLC - All Rights Reserved. CashJul1Jul315,500???? Cash value is invested in the stock market. D. Premiums are tax deductible as a business expense, B. c. continuous premium whole life C. Hazards They become permanently disabled -The insurer would pay the face amount of the policy minus the past due premium. 3. B. Agent Sam is using the human life value approach to assess Mary's life insurance needs. \hline & \text { Jul 1 } & \begin{array}{r} D) They must be signed by both the Producer and the applicant. Which of the following types of insurance policies would perform the function of cash accumulation? An applicant is denied insurance because of information found on a consumer report. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. 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. a) A retail clerk. The policy is a contract of adhesion. c) Accelerated benefit rider. b) Unilateral 3. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation.