c) Misrepresentation A. The correct answer is: Premiums are typically paid by the lender. 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. Limited-Pay Life & Single-Premium Policies? The cash value available to the policyowner EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. All of the following are business uses of life insurance EXCEPT IN WHITE RAIMENT. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. \end{aligned} A. D. The ratings are available to the public -birth of child. 3)Rider expires 60,65,75. B. (b) face amount of the policy and the total premiums that have been paid. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. B. -policy holder adheres to it Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. 4) Joint-Life policy(business part) Insurance policy of 2 or more Prepare a pie chart of on-time delivery performance for last month. 2. Cash value is invested in the stock market. 1)Level A mutual insurance company does not have what? . What is an exchange of a whole entire life policy for another? & \text{ ???? } The applicants(policy owner) ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 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. \text{Sales revenue}&&\$780,000\\ Round Trees management makes a forecast of the demand by rental class for each night in the future. (d) paid-up. Group life insurance is most often issued as guaranteed annual renewable term. b. it frequently includes coverage for losses due to casualty and theft. Predicted needs of the family after the insured's death A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. What are (4) ways annuities are classified? 4)policy matures at age 100. -sex doesn't determine eligibility. d. falsely believing that a spouse has been a) Agent's report Economics questions and answers. Endowments means policy is what(2) things? D. An individual has an insurable interest in her or her own life. C. Tax Status A. Instructions Payor benefit/Clause is always a _________. 3)riders & exclusions The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. A policy summary usually includes all the listed information, and must be delivered along with a new policy. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. -the applicant must always initial the change A life insurance license. Individuals covered under the policy received a certificate of insurance. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D) the minor in a juvenile policy. \textbf{EMPIRE COMPANY}\\ IRS classification of a policy that is overfunded? Correct: A. -Staged intervals and what two kinds? Which term describes the probability of a loss? Daycare is considered to be among these expenses. 1)policy owner can increase/decrease/ or skip premium payments A mutual insurer has no stock, and is owned by the policyholders. C. A surplus lines broker accepts business only from non- resident agents ~~~\text{Advertising expense}&90,000\\ 2)attorneys &\begin{array}{lccc} Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . B. C. It's a decreasing term insurance. 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. C. The insured may retain part of a risk through deductibles. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? (c) two-income earner family. All of the following statements about ordinary life insurance are true EXCEPT. She meets the definition of total disability under Social Security. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. 2)explain any ratings c) Policy loans are taxable distributions. ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" &\text { Accumulated depr.-equipment }\\ (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. II. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. A state administered health insurance for the needy? -provides income for retirement There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. (a) They increase at an increasing rate. B) A fiduciary is a producer who handles insurer funds in a trust capacity. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). B. also known as acceptance. -insured can stop paying premiums at certain age or after a period of time 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. 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? All of the following statements about term insurance are true EXCEPT. the underwriting process is approved for: All of the following are true regarding life insurance illustrations EXCEPT. (must exist at the time of application). Which of the following is a physical hazard? All of the following statements about the characteristics of Social Security are true EXCEPT A. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. D. Speculative Risk 1) Conditional Reciept Rating codes are assigned to show financial strength or weakness of each company rated If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. b) Index used by stock companies When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? 3)MIB=records of all previous insurances they had. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. All of the following statements are true regarding mortgage protection insurance EXCEPT. O d. a) More active. What type of insurer has no capital stock? d) Limited pay. In order for the contract or policy to be valid or legal? \hline & \text { Jul 1 } & \begin{array}{r} Conditional Contract 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Premiums are not tax deductible as a business expense C. Funding business continuation agreements Correct: A.A peril. 6)free-look period-$ back guaranteed. -guaranteed/fixed/level payment, -Immediate "annuitization phase" Which of the following is an example of liquidity in a life insurance contract? (a) present value of future benefits and the present value of future premiums. C. Waiver of Estoppel All of the following information about a customer must be used in determining annuity suitability EXCEPT c) Low-income individuals and families c) Copy of the original application Term life insurance provides pure death protection. Yes, all T-mobile insurance plans cover water damage. a) Aleatory \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ b) Fluctuates. Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees. b) Reduced paid-up Department of Defense (b) They increase at a decreasing rate. d) Producer. 1)physical exam A. 4)defined contribution plans. a. mentally counting backward from 1,0001,0001,000 (d) free look provision. The policy's cash value grows as the investments grow. B. Pro rata liability applies. Jul3117,000\begin{aligned} The benefit is subject to the exclusionary rule B) bonds 3. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. 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. \text { Type I } & \$ 30 & \$ 35 & - \\ The agent Which kind of agent enters into agreements with more than one insurer? d) The Guaranty Corporation. What is the MIB? -also the agent may be required to initial the change, statement of health from insureds personal physician, What are 2 federal laws that protect policy holders & forms that must be completed? The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? -greater potential to grow the cash value but there is no guarantee The debtor does not have an insurable interest in the life of the lender. d) Military personnel. Nonparticipating policy. The application is the basic source of information an insurer uses in the risk selection process. d) 15 years. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . Which method makes the most sense for her to employ? 2) profits are returned as dividends when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Which of the following types of insurance policies would perform the function of cash accumulation? B. CashJul1Jul315,500???? After Alex has made 20 premium payments, his life insurance policy is considered Which of the following is the best reason to purchase life insurance rather than annuities? a) Small employers Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. D) They must be signed by both the Producer and the applicant. considers Lloyds of London an Alien insurer A. -They provide coverage for risks that other insurers normally would not provide. The 3 categories of private insurers site of incorporation? Which of the following is NOT a fraudulent and intentional deception of the truth? 1. Now Tamara can afford whole life insurance. A key person insurance policy can pay for which of the following? According to the entire contract provision, what document must be made part of the insurance policy? Investors become more risk averse. 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. Non-Participating (stock) Life Insurance Policy. B. 1)Domestic Insurer Whats the "take it or leave it contract"? a) The policyholders or stockowners of the company c. It is the failure to use ordinary care. Which risk management type is shifting the risk of loss to a larger homogeneous group? Whole life policy. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. b) Universal Life All of the following statements about term insurance are trueEXCEPTa. ~~~\text{Selling and administrative salaries}&75,000\\ -it is a type of Rider The policy is a contract of adhesion. Address of his principal office a) Accepted accounting principal. B) Fiduciary refers to a position of trust. Their premiums are lower -tax free accumulation of borrowing. 1. There is no limitation on the number of key employee plans in force at any one time. 3)increase the length of coverage B. D. Workers compensation. 3)Alien Insurer. Which type of life insurance makes sense for someone in this situation? 2)Straight Life a) The policy can be converted to term coverage. Correct: B. C. Social Security works exactly same as private insurance. D. Concealment (d) Premiums increase at an increasing rate upon renewal. A. Adverse selection is well controlled. 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. 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. AccountspayableJul1Jul3114,500??? d) Buyer's Guide. \end{array} 1) Competent Parties A. 3) policy builds cash-value (D The employer is the owner, payor and beneficiary of the policy. 3)Minors. d) Older. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Term-Life policy has what 3 characteristics? What is the term for a cause of loss, such as the theft of a car? 1)Whole Life The applicant's medical background is addressed in Part 2 - Medical Information. What does "liquidity" refer to in a life insurance policy? 4)explain policy & provisions 2)administered charge Certificate holders may convert coverage to an individual policy without evidence of insurability. C. Whole life The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health A. Receipt 1. a) An agent offers the use of his lake house to person as an inducement to buy. C. Medical Background What else must he include? a) Remains level. I. c) Conditional C. Insured's annual expenses (a) matured. -the premiums are paid for a limited time only. ~~~\text{Direct labor cost}&190,000\\ c) The policy will be voided. (c) The number of times the coverage can be renewed is limited. &\begin{array}{l|lr} 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution All of the other statements are true. A. \text { Type II } & \$ 20 & \$ 30 & \$ 40 Tamara purchased a term insurance policy when she had high life insurance needs and limited income. b) Conditional receipt C. The insurer is always required to pay the . Agents and producers must place business through an insurer with the lowest rated c) 10 years. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. II. Insurance companies can charge an interest rate based on the policyowner's credit report. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. b. (c) face amount of the policy and the legal reserve. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. For this amount of production, total factory overhead is estimated to be $396,000.00. The death benefit varies according to investment experience. If the insurance carried is less than required, the insurance may not cover the whole loss. Most policies can be renewed for additional periods without evidence of insurability. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? B) Passing examination with 75% or higher score. D. Accident How much life insurance should Sam advise . Appoint a solicitor as his or her representative 3)Increasing term adds face value. (c) both I & II (d) neither I or II, Diane is a single parent. b) Cost of living rider. The correct answer is: Maggie's Piano Studio with 1 employee. This type of life insurance is called An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past A producer wishing to appeal the final order of the commissioner would appeal to???? When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? \end{aligned} For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become 1) Family Maintenance(breadwinner) Quarterly working capital levels for your firm for the next year are included in the following table. The Waiver of Cost of Insurance rider is found in what type of insurance? However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. 2)face amount is set D. Unilateral Contract Tom and Nancy Boyle provide financial support for their two children. B. Misrepresentation When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. Weiss and Fitch are two of these services, although there are more. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights A conditional or binding receipt is given when an applicant does what? Insurance is designed to cover both intentional and unintentional losses. James purchased yearly renewable term insurance. B. d) 50% tax on the amount not distributed as required. B. Marital Status (a) limited-payment whole life insurance (b) current assumption whole life. C. Premiums are tax deductible by the key employee What is NOT invested in the stock market but pays you interest? b) A producer who handles insurer funds in a trust capacity. \end{array} \\ ~~~\text{Depreciation on sales equipment}&45,000\\ D. A surplus lines broker deals with admitted carriers only What (5) Factors for GIO & GIB. whose covered? B. this insurance is often written in connection with automobile loans. (c) conversion provision Which of the following statements is NOT true concering insurable interest as it applies to life insurance? Can a misrepresentation render the contract void if the misrepresentation is material to the risk? 1)increase cash value D. Delivery receipt. 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. D. Term life. They become permanently disabled The insurer issues the policy and learns of his history one year later. B. Life insurance proceeds To sell variable life insurance policies, an agent must receive all of the following EXCEPT Business partners have an insurable interest in each other Last year, the couple got divorced. b. CPI (consumer price index) without evidence. \end{array} _______ pays dividends to the stock holder. A company doing business in the same state it was incorporated in and owned by the policy holders. All of the following statements are TRUE concerning Debtor Groups EXCEPT (Choose from the following options) C. Buy-Sell agreements are normally funded with a life insurance policy Which of the following statements about endowment policies is true? All of the following statements concerning coinsurance are true, EXCEPT . D. Concealment Costs of training a replacement Acceptance 3)2 death benefit option EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} -guarantee a stream of income to the person purchasing it known as the annuitant. Warranty Insurance transfers risk but it does not__________ risk. Correct: A. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. \text{Less: Operating expenses}\\ Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. -kids till 21 The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? 1. 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? All The statements made on the application are called ______? Insurance is considered a transfer of risk. -Follows all conditions of contract & pays premium, -insurer says how policy works Exclusions always exist, and there is a reason for each one. 2. Who represents the insured when dealing with insurance companies? What constitutes the acceptance of an offer? Long term- the longer the policythe more spread out the policy premiums are. 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. B) The plan is funded by permanent insurance only. 2) premiums do not change Insurers use this law in order to predict certain types of losses and set appropriate premiums. Which of the following statements is not correct regarding rates and premiums? 5)Explain when coverage begins The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. 25,500, AccountspayableJul114,500???? Which of the following is a financial rating service? The 4 characteristics of a universal life policy are? Hospital bills of the key employee -receiving dividends(when declared) A. ~~~\text{Raw materials purchases}&\$264,000\\ If there Is a risk of financial loss then there is a what? Correct: A Insurance . exclusions: when the accident occurs within an illness,disease, or mental infirmity. Medical exams provide information on current health. c) An agent offers tickets to a baseball game as an inducement to buy insurance. \hline & \text { Jul 31 } & 58,000 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. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. Only the MIB will provide information about an applicant's medical history. 3)2 Death benefits-(level/increasing) b) Coverage ends and the policy cannot be reinstated. With a little work, an unused office area could be converted to a rental room. The failure to disclose known facts is what? ________________ are the person who receives benefits payable upon death. why is my dog whining at my guinea pig,
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