EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} -pay for certain time and stop After examining other manufacturing cost data, you have acquired additional information as follows. Increasing term Which type of risk involves the possibility of loss or gain? Which type of life insurance makes sense for someone in this situation? In this particular instance the applicant did not commit intentional fraud. I. a) Premium amounts and surrender values B. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? c) Denying coverage after a reasonable investigation has been conducted 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)temporary exclusions: when the accident occurs within an illness,disease, or mental infirmity. Social Security is designed to provide a base of economic security B. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. -usually mutual fund security Adverse selection is well controlled. d) Policy dividends. Limited-Pay Life & Single-Premium Policies? A. Which of the following is the basic source of information used by the company in the risk selection process? C. Premiums are tax deductible by the key employee The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 2)non-qualified plans Which of the following does not constitute the consideration in the insurance transaction? B) Passing examination with 75% or higher score. &\begin{array}{lr|lr} It does not include breach of contract. c) Coverage ends but the policy can be reinstated at any time. (3), WHat is the difference between universal and whole life policies? 2)Variable annuity Question: All of the following statements about variable life insurance are true EXCEPT O a. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. (d) Premiums increase at an increasing rate upon renewal. All of the following statements are true regarding mortgage protection insurance EXCEPT. D. Breach of warranty Correct: C. Unilateral contract. 2)when benefits begin 3,000, AccountsreceivableJul121,000???? The County is administered by a five-member Board of Supervisors who are elected for four-year terms 2)Decreasing Term -provides income for retirement An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. Arrest History. All of the following characterize term life insurance, EXCEPT: Select one: a. Newborns after how many days become covered in a child rider? b. A false statement in the application for insurance is_____________. Medical exams provide information on current health. 4)Consumer report=credit, -shorter time span for paying premiums D. The policy is a bilateral contract 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. A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . Alex, age 26, purchased a 20- payment whole life insurance policy. 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? The 3 categories of private insurers site of incorporation? D. Aleatory contract CashJul1Jul315,500???? d) Accumulations are tax deferred. Round Trees management makes a forecast of the demand by rental class for each night in the future. 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 Misappropriation or illegal withholding of the policyholder's money. A) They must be given to all Life insurance applicants. The agent D. A surplus lines broker deals with admitted carriers only \end{aligned} -age 100. 1)premium payment It is a type of tort. D. Funding against general company financial loss. All of the following would be considered to be rebating EXCEPT Reinsurer Assuming company. Which of the following statements concerning buy-sell agreements is true? -then picks a contract. d) Contingent. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. A surplus lines broker deals with direct writing companies only a) Consumer Privacy Act D. Department of Treasury Permanent Insurance have 3 words in common, what are they? B. Insureds current and future income Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? A. 4) 3 components to the premium, The owner and the insured are different people. b) Policyholder c) Comparisons with similar policies Legal Purpose The purpose of an estate clearance fund is to pay all of the following EXCEPT. B. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ \end{array} \\ A. Terms that apply to the insurer not the applicant. D. The benefit is received tax free. B. Claim is still paid with an adjustment to the benefits. Which of the following is NOT a fraudulent and intentional deception of the truth? The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. Conviction of a felony involving moral turpitude. (a) I only (b) II only Domestic Insurer 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. The Waiver of Cost of Insurance rider is found in what type of insurance? 2. The NAAR for a life insurance policy is the difference between the a) Withdrawals are not taxable. What must exist at the time of the application? Conditional Contract What are two reasons that people deposit money in banks? c) The policy will be voided. What happens when there is a Misstatement of age or sex? a) The policy can be converted to term coverage. (3), 1)bank trust officer d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. (b) current assumption whole life. 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? (d) free look provision. A Contract that binds only one party to future performance, is a (n): A. \end{aligned} What is the primary source of info for the underwriting department to determine insurability? C. Application D. Speculative Risk If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. The correct answer is: Maggie's Piano Studio with 1 employee. Department of Defense -marriage (b) reduced. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ (c) term insurance Which is generally true regarding insureds who have been classified as preferred risks? Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Statement of good health C. Waiver of Estoppel 4)Explain the policy and its provisions The 4 characteristics of a universal life policy are? . b. (c) The number of times the coverage can be renewed is limited. \text{Less: Operating expenses}\\ Explain your answer. D) They must be signed by both the Producer and the applicant. If someone dies within the Grace period, what happens? B. Buy-Sell Agreements pay in the event of a medical emergency If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? 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 . A policy summary usually includes all the listed information, and must be delivered along with a new policy. Costs of training a replacement Insurance is designed to cover both intentional and unintentional losses. d. The total of all cost sheets completed during the month is $628,880.00. -assignor=assignee A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. (6). IRS classification of a policy that is overfunded? When must insurable interest exist in a life insurance policy? Who assumes control over an insurance company's funds and management if it becomes insolvent? 4. 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. Prepare the following details: Mobile number, serial number, or IMEI. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. What is the purpose of a suicide provision within a life insurance policy? The cost of insurance protection is referred to as what? Since they may receive a dividend (not guaranteed), such policies are known as participating policies. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. 4) Joint-Life policy(business part) Insurance policy of 2 or more -it is a type of Rider -Not invested in stock market (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. b. persistent fear of germs A. b) Fluctuates. ____________ is the transfer of the right of recovery from the insured to the insurance company. A. Misrepresentation, Concealment and Deceit are all examples of what? b) Reduced paid-up _____________ is a statement that is true to the best of the persons knowledge that is making the statement. 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____________? Whats the "take it or leave it contract"? b) A producer who handles insurer funds in a trust capacity. 3)MIB=records of all previous insurances they had. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? (receive dividends & the right to vote). What is the term for a cause of loss, such as the theft of a car? C. Independent rating services evaluate and rate the financial ability of insurance companies What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? d) Fair Credit Reporting Act. &\text { Accumulated depr.-equipment }\\ A. Empire Company is a manufacturer of smart phones. C) purchasing family term insurance. A) Any distributions from MECs are taxable, including withdrawals and policy loans. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. 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". After Alex has made 20 premium payments, his life insurance policy is considered 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. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ c. It is the failure to use ordinary care. C. Social Security works exactly same as private insurance. This method of estimating . Yes, all T-mobile insurance plans cover water damage. 1)Level C. Medical Background Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Why?". Which of the following is NOT an allowable 1035 exchange? The shifting of risk of loss to a larger homogeneous group is known as what? Address of his principal office Height Weight and Health conditions. ~~~\text{Raw materials purchases}&\$264,000\\ D. Funding against general company financial loss ________________ are the person who receives benefits payable upon death. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? In a car accident dealing with ADB who covers the passenger? (d) neither I nor II. d) Limited pay. Which of the following statements is not correct regarding rates and premiums? &\begin{array}{l|lr} The concept that the insured should not profit from an insurance transaction is called what? Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. The policy is a contract of adhesion. The correct answer is: Premiums are typically paid by the lender. The issuance of a _________ is the result of the acceptance of an offer. 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? -Take it or leave it contract ______________ is defined as restoring the insured to the same financial condition as before the loss. Which of the following would provide an underwriter with information concerning an applicant's health history? B) The plan is funded by permanent insurance only. Involuntary Risk (c) both I & II (d) neither I or II, Diane is a single parent. (Choose from the following options) 2)face amount is set A. Correct: A. 3)semi-annual Correct: A.A peril. D) Claims result from losses by a peril insured against in an insurance policy. (b) II only \hline Example: company that is incorporated in NJ and sells in NJ. A _______ __ is the additional premium needed to get covered with high or substandard risk. C. A surplus lines broker accepts business only from non- resident agents d) Blackout approach. 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. b) Copies of illustrations and application \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ D. Delivery receipt. This type of life insurance is called b. c) The inspection report don't pick binding receipt at all on test. ? If the insurance carried is less than required, the insurance may not cover the whole loss. What will probably happen? 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. Exclusion Categories All of the following are business uses of life insurance EXCEPT ____________ is a statement that is true to the best of the persons knowledge that is making the statement. ~~~\text{Depreciation on sales equipment}&45,000\\ and what two kinds? Which of the following about the use of ordinary life insurance is true? How much life insurance should Sam advise . Which of the following statements about universal life insurance is true? The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. What characteristic must an annuity have if it is used to accumulate funds in an IRA? The insurer that is transferring the risk to another company is called the ____________ __________. Level-increasing face value. She meets the definition of total disability under Social Security. c. thoughts of harming a neighbor & \text{ ???? } C. Solicit applications on the insurer's behalf It has cash value that is invested into the stock market through mutual funds/securities. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? A life insurance license. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? The remaining amounts should be charged to selling and administrative activities. 2)not payable in conjunction. O b. Correct: B. D. Financial Experience. B. d) Producer. &\text { Inventory }\\ -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded 1) the premium amount 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. It is used to help adequacy and equity in rates. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? Which of the following statements about endowment policies is true? CPI (consumer price index) without evidence. What kind of penalty would the IRA owner pay? Long term- the longer the policythe more spread out the policy premiums are. All of the following are common characteristics of this coverage EXCEPT See Answer. Use the indirect method. The storage of flammables in a fireproof container. B. (c) Most policies can be converted to a permanent life insurance policy. the application is used at the primary source of info. 1)policy owner can increase/decrease/ or skip premium payments The following are all true regarding risk management, except: A. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. \text{Sales revenue}&&\$780,000\\ d. It does not require a duty to be owed. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. AKA-payout phase. C. Concealment b) 10% for early withdrawal has reached its final destination and can be paid out in full. A. contract of adhesion 4. An Applicant inaccurately representing information on the application is guilty of: A. A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called d) 50% tax on the amount not distributed as required. 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. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. b) Fixed income d) Paid-up option. 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. (b) single-parent family. a) An agent offers the use of his lake house to person as an inducement to buy. All of the other statements are true. Jul3119,500\begin{aligned} (a) blended family. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Annually renewable term policies provide a level death benefit for a premium that 2) standard risk 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) Extended term C. A surplus lines broker deals with direct writing companies only Pure risk O b. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Which of the following documents must be provided to the policyowner or applicant during policy replacement? A. The 7 paytest is used to determine if a policy is a _______? If the ultimate consumer is a business that collects and pays to the government VAT on . 4. Difference between Universal Life Insurance and Whole Life Insurance? Out of 20 yr or 30 yr which policy is less expensive? Non-Participating (stock) Life Insurance Policy. -receiving dividends(when declared) 3)defined benefit plans a) Remains level. The penalty is 50% of the shortfall from the required annual amount.