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

AKA-payout phase. (a) matured. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Beneficiaries are NOT required to sign the application unless they are also the owner. Which kind of agent enters into agreements with more than one insurer? Various life insurance programs for people who served in the military are called ______________? a) The policyholders or stockowners of the company Originating policy D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. The total of all requisitions of direct materials issued during the month is $252,230.00. D. Reduction is a method of managing risk. Represent the insured's interest How has the Aswan High Dam affected the lives of Egyptians? a) Because the insured is currently not a drug user, his policy will not be affected. 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. A. c) Whole Life The designation will be void/. -ages 25,28,34,37,40 C) They must contain a warning that actual results may vary. Rates. c) Helping insureds to file claims C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. D. Aleatory contract 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. What (5) Factors for GIO & GIB. whose covered? Who gets $$money when the policy holder dies? One sided contract is a ______________ contract. 2)Legal Purpose It is a type of tort. (b) level-premium method 1)Whole Life D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. Misappropriation or illegal withholding of the policyholder's money. cash value increases while face value remains the same. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. D. Effect of inflation on income over time. 3)Consideration 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) annual premium and the annual policy dividend. An underwriter will consider each of the following factors when evaluating a risk, except: A. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. D. Gender. To sell variable insurance what must you have? What happens when a policy is surrendered for its cash value? -Not a true insurance company What are the permanent working capital needs of your company? (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. \hline \text { Jul 1 } & \begin{array}{r} Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Premiums are not tax deductible as a business expense Nonparticipating policy. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. cheating. 3. 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 Modification to a policy is a _______________? When must insurable interest exist in a life insurance policy? A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? -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? a) More active. 3)MIB=records of all previous insurances they had. Rates 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. c) 15% for early withdrawal a) Universal life Most insurance policies contain a specific limit that an insurer will pay for a single claim. 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. Use the indirect method. 1. In this case, the applicant will most likely need to fill out a Statement of Good Health. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. \hline \text { Jul 1 } & 5,500 &&\\ What is an exchange of a whole entire life policy for another? What is the difference between renewable policy holder & Insurer? There is no limitation on the number of key employee plans in force at any one time B. ____________ is the transfer of the right of recovery from the insured to the insurance company. Which of the families below is likely to have the least need for a large life insurance policy? (c) two-income earner family. 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. \end{array} A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Investors become more risk averse. Which of the following is true regarding the beneficiary designation of the former spouse. Medical exams provide information on current health. 2)Decreasing Term c. thoughts of harming a neighbor \end{array} Which type of risk involves the possibility of loss or gain? 3)Increasing term adds face value. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. 3)substandard risk. (Choose from the following options) Insurance is considered a transfer of risk. Waiver of Premium- What happens to the insurer? (c) PV of the family's share of a deceased breadwinner's future earnings. You cannot sell a variable policy without what? ____________ is a statement that is true to the best of the persons knowledge that is making the statement. a) Lump-sum approach It is used to pay off the balance on the mortgage. (a) They increase at an increasing rate. Get more out of your subscription* Access to over 100 million course-specific study resources I. The following are all true regarding risk management, except: A. 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. 2)Decreasing term(premium is low) declining face value Suitability Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} The policyowner can add to a policy's cash value at any time subject to policy guidelines. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. The applicant accepts the invitation by paying the ___________. An insured becomes disabled at age 22 and can no longer work. -Take it or leave it contract a) Year only. d) Fair Credit Reporting Act. b) Increasing Premium When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health 2) Transferring the risk Fraud If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? d) Accumulations are tax deferred. Receipt b) 10% for early withdrawal C. Unilateral contract All The statements made on the application are called ______? &\text { Rental Class }\\ Whoso. Most agents try to collect the initial premium for submission with the application. . An individual applies for a life policy. A. C. The death benefit paid to the beneficiary and what two kinds? The application is the basic source of information an insurer uses in the risk selection process. 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? B. IRS has no jurisdiction D) Obtaining a bachelor's degree. -it pays the double indemnity, 1)accident occurs, person must die within 90 days Whats the "take it or leave it contract"? A ____ contract requires that both parties perform certain duties. C. Tax Status Exclusions always exist, and there is a reason for each one. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). An applicant is denied insurance because of information found on a consumer report. \end{array} As her friend, you have been asked to review the income statement and make necessary corrections. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. D) adding cost of living coverage. Its controller resigned in October 2017. -insured can stop paying premiums at certain age or after a period of time d) Loss. -car accident not in conjunction with an illness b) Fiduciary responsibility. Which term describes the probability of a loss? Type I rooms do not have wireless Internet access and are not available for the Business rental class. Renew policy holder has an option- THE INSURER DOES NOT. 2. A life insurance policy is exchanged for an annuity. Arrest History. Which of the following statements about endowment policies is true? B. Misrepresentation All of the following are personal uses of life insurance EXCEPT, All of the following are true of key person insurance except, D. The plan is funded by permanent insurance only. I. Conviction of a felony involving moral turpitude. 3)Family Policy(Limited but all fam members paid) When applicant is not the insured ______________ must exist. A policy that does not pay dividends to policyowners is a 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 . b. Which of the following is TRUE regarding assignment rights for . -kids till 21 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. b. b) Conditional receipt d) Tax-deductible. B. There are 2 parties of the contract- what are they? (c) both I and II -cash value options Pure risk (c) term insurance Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. - Limited Pay Life \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ What is the purpose of a suicide provision within a life insurance policy? \end{aligned} Annually renewable term policies provide a level death benefit for a premium that 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution Be prepared to justify your answer. The parties in the insurance contract consist of whom? ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} The insurance provides protection for a specified period of time. c) Disclosure rule (a) The insurance provides protection for a temporary period of time. Cash value is invested in the stock market. All of the following would be considered to be rebating EXCEPT a) A retail clerk. If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would it be considered in New York? A. 4. &\begin{array}{l|lr} The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. This form of life insurance has fixed premiums and the cash value is not guaranteed. The failure to disclose known facts is what? 4)annual, Everytime you have a payment due. d) Policy dividends. O b. &\begin{array}{r|lr} When a policy is non-contributory how much is paid? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Concerning insurance, the definition of a fiduciary is 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? B) A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. a) Remains level. C. Buy-Sell agreements are normally funded with a life insurance policy \hline \text { Jul 1 } & 22,000 \\ An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? Nature of risk Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Predicted needs of the family after the insured's death -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded What will probably happen? \text { Type I } & \$ 30 & \$ 35 & - \\ d) 50% tax on the amount not distributed as required. B. Prior to October 2017, the company had been profitable every month. ~~~\text{Direct labor cost}&190,000\\ c) Misrepresentation A. D. Offer c) 10 years. D. Unilateral Contract c. It is the failure to use ordinary care. Correct: C. Unilateral contract. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Conditional contract means the policy holder does what? In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). Are insurance company underwriters allowed to discriminate? &\text { Retained Earnings }\\ What happens when there is a Misstatement of age or sex? A peril All of the following are true of insurance EXCEPT It transfers risk. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Who would be eligible to obtain SGLI? D. The benefit is received tax free When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Compute DVDs net cash provided by (used for) operating activities during July. 2)Straight Life 1)temporary All of the following statements about term insurance are true EXCEPT.

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