Conditional Contract A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? \end{aligned} a. whole life paid at 65 B. a) No penalties, since the owner is older than 59 Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. Who would be eligible to obtain SGLI? d) Contingent. The applicant accepts the invitation by paying the ___________. C. It's a decreasing term insurance. Signed waiver of premium Yes, all T-mobile insurance plans cover water damage. 3)2 Death benefits-(level/increasing) What are the two options in death benefit options? 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. Height Weight and Health conditions. 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. C. Independent rating services evaluate and rate the financial ability of insurance companies 1)policy owner can increase/decrease/ or skip premium payments \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ A ______ will receive unfavorable tax treatment. * 50% is paid d. It does not require a duty to be owed. ______________ is defined as restoring the insured to the same financial condition as before the loss. Rates. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded A contract between insurer and policy holder. D. A surplus lines broker deals with admitted carriers only a) The policyholders or stockowners of the company 2)Family Income(decreasing term-policy) 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. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. There is a minimum guaranteed interest rate on all sub-accounts. d. falsely believing that a spouse has been Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. c. thoughts of harming a neighbor 90-180 days. (d) Most policies have a CV that is refunded when coverage ceases. -Not invested in stock market A surplus lines broker deals with direct writing companies only Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . 1) Family Maintenance(breadwinner) C. The insured may retain part of a risk through deductibles. d) 15 years. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. 2)Decreasing Term A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. b) Hazard The agent 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. C. Application Everything else equal, how would the factor below affect the market value of a stock? A producer wishing to appeal the final order of the commissioner would appeal to???? Address of his principal office Explain your answer. An insurance consultant CANNOT be which type of persons? Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} The companys president is concerned about the accuracy of the income statement. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. If the corporation collects the policy benefit, then It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. What is the term for a cause of loss, such as the theft of a car? \end{array} a) Lump-sum approach 1)Statement of continued good health a) Withdrawals are not taxable. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. 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. \end{aligned} D. Aleatory contract Insurance producers must ensure that contracts they recommend are in the best interest of the insured. a) Using arbitration when the insured and insurer cannot reach agreement Prepare a pie chart of on-time delivery performance for last month. Cash value is invested in the stock market. 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. When a policy is contributory how much is paid? Which nonforfeiture option provides coverage for the longest period of time? Quarterly working capital levels for your firm for the next year are included in the following table. C) They must contain a warning that actual results may vary. Domestic Insurer d) Older. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? 4 All of the following statements about term insurance are true EXCEPT 4)explain policy & provisions Tamara purchased a term insurance policy when she had high life insurance needs and limited income. B. c. continuous premium whole life a) Universal life II. (3), WHat is the difference between universal and whole life policies? Term life insurance provides pure death protection. \end{array} They become permanently disabled B. All of the following would be considered to be rebating EXCEPT When a policy has reached its final destination and can be paid out in full is when the policy has ____________? 2)quarterly A whole life insurance policy is exchanged for a Universal life insurance policy. When does the grace period begin and how long is it? (Choose from the following options) When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. What is the primary source of info used to determine insurability by the underwriting department? Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Beneficiary's age 5)Explain when coverage begins 2. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? (c) expired. All of the following information about a customer must be used in determining annuity suitability EXCEPT 4. All of the following statements about universal life insurance are true EXCEPT Something of value is a __________________. 1) cash value earns interest L4. Life Insurance Policy Provisions Options and Riders _________ is a determination that a statement made as a warranty, or true. Is interest always gained in Universal Life Policy? The policy does not go into effect until the premium has been collected. 2)people under the influence of drugs or alcohol Reinsurer Assuming company. The policy is a conditional contract \end{aligned} Why do most states have a waiting period for couples applying for marriage licenses? b) The policy will not be affected. 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? -ages 25,28,34,37,40 What is the primary source of info for the underwriting department to determine insurability? &\text { Accumulated depr.-equipment }\\ 1)Whole Life e. The total of costs recorded on all sales invoices for the month is$654,052.00. The remaining amounts should be charged to selling and administrative activities. The issuance of a binder is the result of the ___________________ of an offer. 3. The designation will be void/. Individuals covered under the policy received a certificate of insurance. What is the difference between renewable policy holder & Insurer? C. Concealment 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? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. What happens when there is a Misstatement of age or sex? 3)Consideration 3)substandard risk. 3)low premiums. It requires evidence of insurability for renewal. A SEC registration. A. I. What is a statement in the application guaranteed true in all respects? B. Occupation D. Concealment &\begin{array}{lr|rr} a) Agent's report a) Aleatory Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. As her friend, you have been asked to review the income statement and make necessary corrections. (b) single-parent family. c) Helping insureds to file claims See Answer. The policy is a contract of adhesion. B. *The insured is diagnosed with terminal & chronicle illness (Medic Information Bureau)? What type of insurer has no capital stock? (a) I only (b) II only 4. Under Section I, homeowners insurance must include 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. (economy). D. Funding against general company financial loss. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. Flashcards - WA Life Law Practice Exam - FreezingBlue An underwriter will consider each of the following factors when evaluating a risk, except: A. C. Insured's annual expenses \hline & \text { Jul 1 } & \begin{array}{r} Which of the families below is likely to have the least need for a large life insurance policy? Accelerated Living Benefit/Death Benefit is what type of rider? d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. (c) face amount of the policy and the legal reserve. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights & \text { Depr } & 3,000 \\ b) Fiduciary responsibility. Cash values are available in whole life policies. 1. Principles of Risk Management and Insurance - Easy Notecards Which of the following statements about limited-payment life insurance is true? Most insurance policies contain a specific limit that an insurer will pay for a single claim. A monthly deduction is made from a policy's cash value for the cost of insurance protection. Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. a. It does not include breach of contract. Their premiums are lower ____________ is a statement that is true to the best of the persons knowledge that is making the statement. 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 1)absolute assignment-all rights are assigned (a) matured. A. signed waiver of premium b) Fixed income Insurers use this law in order to predict certain types of losses and set appropriate premiums. -Prepays portion of face amount if diagnosed with terminal illness. 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. All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. 1) coverage is permanent What are the 3 characteristics of a Mutual Insurance Company? ~~~\text{Selling and administrative salaries}&75,000\\ 1) a policyholder votes on the Board of Directors D. Solicit applications on insurer's behalf 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. B. All of the following are true about health insurance except: Mutual life policy. 4. Which kind of agent enters into agreements with more than one insurer? B) the applicant. -policy holder adheres to it and what two kinds? a) Indeterminate Premium He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. Statement of good health 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? Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. Universal Life is also known as two things what are they? An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. D. Accident D. Department of Treasury Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? c) Increases annually. \\ The __________ branch of the state government influences public policy regarding insurance laws. (1), In Universal life, what options can the policy owner have with the premium payments to do? Value-added tax - Wikipedia (a) Evidence of insurability is not required to renew the coverage. 3)Increasing term adds face value. -A Mec will receive unfavorable tax treatment A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. (c) human life value method \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ A. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. compulsion? An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? 3)MIB=records of all previous insurances they had. -cash value can lose value. Which of the following is a financial rating service? S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. A. B. 3)Alien Insurer. O b. A _______ __ is the additional premium needed to get covered with high or substandard risk. For this amount of production, total factory overhead is estimated to be $396,000.00. Its controller resigned in October 2017. Warranty Group Life Insurance Flashcards | Chegg.com In order for the contract or policy to be valid or legal? Round Trees management makes a forecast of the demand by rental class for each night in the future. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. 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. Which of the following is an example of an unfair claims settlement practice? An Insurance broker is responsible for what? What kind of penalty would the IRA owner pay? -immediately considered fully paid up c) Guides describing company financial integrity A conditional or binding receipt is given when an applicant does what? Abortion in the United States - Wikipedia This is called. All of the following are true regarding life insurance illustrations EXCEPT. All of the other statements are true. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. To sell variable insurance what must you have? RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. C. A surplus lines broker deals with direct writing companies only Which of the following statements concerning buy-sell agreements is true? Free Standardized Tests Flashcards about Health&Life - StudyStack Last year, the couple got divorced. 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. (d) They remain level. C. Tax Status 4)policy matures at age 100. A corporation is the owner and beneficiary of the key person life policy. A. They keep a high percentage of any interest earned on their policies B. All of the following are methods of payment? What adds coverage and modifies coverage? C. Hazards Which term describes the probability of a loss? (receive dividends & the right to vote). C. A surplus lines broker accepts business only from non- resident agents Adverse selection is well controlled. B. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. Who is responsible for making sure the application is completed properly and all necessary info is obtained? 3) Retaining the risk. What are (4) characteristics of permanent insurance? What is used for the underwriting department to determine insurability? DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. What insurance concept is associated with the names Weiss and Fitch? D. Speculative Risk ________________ are the person who receives benefits payable upon death. 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? Which of the following statements is NOT true concering insurable interest as it applies to life insurance? B. Twisting -the premiums are paid for a limited time only. B. Beneficiarys age
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