all of the following are true of insurance except all of the following are true of insurance except

Waiver of Premium- What happens to the insurer? (b) variable life insurance Daycare is considered to be among these expenses. B. Aleatory contract c) Accelerated benefit rider. (a) Interest is credited monthly to a policy's cash value. \hline \text { Jul 1 } & 22,000 \\ This is called. Insurance is designed to cover both intentional and unintentional losses. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Claim is still paid with an adjustment to the benefits. Which of the following is a financial rating service? Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. may not be altered by an agent and must clearly state that it is not part of the contract. Which of the following types of insurance policies would perform the function of cash accumulation? (b) single-parent family. Hazard C. Buy-Sell agreements are normally funded with a life insurance policy compulsion? When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. Life Insurance Basics Flashcards | Quizlet If applicant is not the insured- then insureds signature is required A. b) Fixed income (b) II only c. Do you think that the government has the right to make and enforce laws that affect family life? What is the primary source of info used to determine insurability by the underwriting department? 3)low premiums. d) Primary and secondary beneficiary designations. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. 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. Compute DVDs net cash provided by (used for) operating activities during July. C. The insured may retain part of a risk through deductibles. Insurance is an important tool to manage risks, but often unavailable to poorer households. 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. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. \hline & \text { Jul 1 } & \begin{array}{r} See Answer. -Can't lose value \\ 1) preferred-low c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. (Choose from the following 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. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} Any gain in the policy's cash value is . It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. B. Misrepresentation This form of life insurance has fixed premiums and the cash value is not guaranteed. Conviction of a felony involving moral turpitude. Their premiums are lower c) Extended term Which nonforfeiture option provides coverage for the longest period of time? a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . If there Is a risk of financial loss then there is a what? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). C. Independent rating services evaluate and rate the financial ability of insurance companies d. It does not require a duty to be owed. -pay for certain time and stop Explain your answer. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? 3)premium is collected b) Coverage ends and the policy cannot be reinstated. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. d) The Medical Information Bureau. What is the MIB? A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. 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. C. Social Security works exactly same as private insurance. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. When a New York insurance agent or broker advertises services, he/she must list the full name of the insurer and the name of the city, town, or village that houses the principal office. A. a) Using arbitration when the insured and insurer cannot reach agreement D. Funding against general company financial loss. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? \text{Inventory} & 201 & 505 & 905 & 52 \\ 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? (c) both I and II See Answer. All of the following are true of insurance EXCEPT It transfers risk. -The insurer would pay the face amount of the policy minus the past due premium. Which of the following is the best reason to purchase life insurance rather than annuities? Joe, Larry, and Curly own a small business. Round Tree has 100 Type I rooms and 120 Type II rooms. c) Increases annually. Term-Life policy has what 3 characteristics? (d) paid-up. There is a limit for a withdrawal and the insurer charges a fee. b) State attorney general A false statement in the application for insurance is_____________. exclusions: when the accident occurs within an illness,disease, or mental infirmity. The following information is taken from the records of Hammond on November 30 of the current year. & &&\textbf{ Quarter } \\ Who gets $$money when the policy holder dies? 3)2 Death benefits-(level/increasing) Terms that apply to the insurer not the applicant. A. \textbf{For the Month Ended October 31, 2017}\\ a) Payor rider. When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). (c) expired. Accidental Death Benefit Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? D) Obtaining a bachelor's degree. -immediately considered fully paid up A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. A. D. Premiums paid are deductible as a business expense. Correct: D. Concealment. Modification to a policy is a _______________? \end{array} B. B. -age 100. Correct: A. 3)MIB=records of all previous insurances they had. 4)underwriting is complete 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? 3)Explain any riders or exclusion A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. &\text { Accumulated depr.-equipment }\\ Cause of potential loss to property such as fire, windstorm, hail, flood, etc. 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. Which of the following is the basic source of information used by the company in the risk selection process? Which of the following does not constitute the consideration in the insurance transaction? C. Domestic Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. -receiving dividends(when declared) Rates are considered inadequate when they do not cover projected losses and expenses. 4)Explain the policy and its provisions Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. To sell variable insurance what must you have? What are the two options in death benefit options? 1)premium payment ~~~\text{Depreciation on factory equipment}&31,000\\ a) The policy can be converted to term coverage. Which type of life insurance makes sense for someone in this situation? Predicted needs of the family after the insured's death are used in the needs approach. 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. d) The insurer will sue the insured for committing fraud. B. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. An Insurance Broker is responsible for what? C. A surplus lines broker deals with direct writing companies only All of the following would be considered to be rebating EXCEPT (c) two-income earner family. DONT PICK IT!!!!!! -sex doesn't determine eligibility. Be prepared to justify your answer. Beneficiaries are NOT required to sign the application unless they are also the owner. 2)not payable in conjunction. Who appoints the state insurance regulator in many states? 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. d) Paid-up option. What is the term for a cause of loss, such as the theft of a car? (6). C. Medical Background Which of the following statements is NOT true concering insurable interest as it applies to life insurance? B) bonds 3. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. D. Reduction is a method of managing risk. (b) current assumption whole life. B. 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 . Whoso. A. The person who receives the benefit when insured dies. Chapter 11 - Life Insurance Flashcards | Quizlet -Staged intervals All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. Accelerated Living Benefit/Accelerated Death Benefit? C. Medical Background d) Living need rider. D. Financial Experience. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. A ______ will receive unfavorable tax treatment. c) Smaller. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. An applicant is denied insurance because of information found on a consumer report. b. it frequently includes coverage for losses due to casualty and theft. Carl would like to purchase life insurance. 2)Decreasing Term C. Countersign insurance contracts D. Premiums are tax deductible as a business expense, B. c) Copy of the original application 1. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. When does the grace period begin and how long is it? 3) Increasing Term. 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? Reinsurance has 2 types of policys, what are they? Yes, all T-mobile insurance plans cover water damage. D. Alien Value-added tax - Wikipedia Jul3117,000\begin{aligned} The concept that the insured should not profit from an insurance transaction is called what? d) Buyer's Guide. Our records show that more than one device is associated with this D) When replacement is involved, a producer must perform the following duties: sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. What type of interest does universal life have? 4)annual, Everytime you have a payment due. A state administered health insurance for the needy? Which of the following is true regarding the beneficiary designation of the former spouse. A person who negotiates insurance contracts on behalf of an insured. a) Agent's report -it pays the double indemnity, 1)accident occurs, person must die within 90 days Who is responsible for making sure the application is completed properly and all necessary info is obtained? B. (b) Cash value accumulation is slow to moderate. Breach of warranty a) Remains level. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles -20 pay life-paid up at 65 I. This type of life insurance is called Which type of risk involves the possibility of loss or gain? Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. 2)standard-average 1. -tax free accumulation of borrowing. 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? Accelerated Living Benefit/Death Benefit is what type of rider? 2)face amount is set D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. considers Lloyds of London an Alien insurer Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Example: company that is incorporated in NJ and sells in NJ. B. 2) premiums do not change -the applicant must always initial the change 2)non-qualified plans A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? 2)premium gets lower. A. Now Tamara can afford whole life insurance. (a) blended family. Represent the insured's interest (Choose from the following options) Insurers use this law in order to predict certain types of losses and set appropriate premiums. C. Application -Not invested in stock market b) Fiduciary responsibility. \text { Type I } & \$ 30 & \$ 35 & - \\ AKA-payout phase. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. Domestic Insurer B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. e. The total of costs recorded on all sales invoices for the month is$654,052.00. a) To limit the insurer's liability after the 2 year waiting period A. (c) human life value method D. Funding against general company financial loss The policyowner can add to a policy's cash value at any time subject to policy guidelines. What kind of penalty would the IRA owner pay? a) Aleatory Can a misrepresentation render the contract void if the misrepresentation is material to the risk? Which of the following about decreasing term insurance is true? B. &\begin{array}{lccc} Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Nonparticipating policy. 1. 2)when benefits begin (d) They remain level. C. Premiums are determined by age sex and occupation of each individuals certificate holder. -then picks a contract. Investors become more risk averse. - 20 pay life-premiums paid for 20 years and paid up at 65 \end{array} The death benefit varies according to investment experience. Funding against financial loss caused by the death of a key employee The failure to disclose known facts is what? A contract between insurer and policy holder. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? (b) face amount of the policy and the total premiums that have been paid. 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. \end{aligned} What are the temporary needs? All of the following statements about the characteristics of Social Security are true EXCEPT A. \text{ ???? } A. 3) policy builds cash-value Receipt Which risk management type is shifting the risk of loss to a larger homogeneous group? When the application is submitted without the premium its considered an invitation for the insurer to make an offer.