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. 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. b) An agent offers to share his commission with a policyholder. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. 1)policy owner can increase/decrease/ or skip premium payments If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? 1) premium schedule differ from whole life A. Insurance is considered a transfer of risk. D. group credit insurance must have a suicide clause . 5)coverage begins Correct: C. Unilateral contract. Appoint a solicitor as his or her representative B. (c) PV of the family's share of a deceased breadwinner's future earnings. Pertaining to insurance, what is the definition of a fiduciary responsibility? Insurance is an important tool to manage risks, but often unavailable to poorer households. D) Claims result from losses by a peril insured against in an insurance policy. Be prepared to justify your answer. (a) capital retention approach C. Medical Background The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. c. Manufacturing expense accounts and their balances for the month are as follows: DepreciationExpense-FactoryEquipment$5,770.24MiscellaneousExpense-Factory$13,780.48DepreciationExpense-Building2,822.40PayrollTaxesExpense-Factory43,736.00Heat,Light,andPowerExpense9,055.20PropertyTaxExpense-Factory6,088.32InsuranceExpense-Factory1,505.28SuppliesExpense-Factory18,063.36\begin{array}{lrlrr}\text { Depreciation Expense-Factory Equipment } & \$ 5,770.24 & \text { Miscellaneous Expense-Factory } & \$ 13,780.48 \\ \text { Depreciation Expense-Building } & 2,822.40 & \text { Payroll Taxes Expense-Factory } & 43,736.00 \\ \text { Heat, Light, and Power Expense } & 9,055.20 & \text { Property Tax Expense-Factory } & 6,088.32 \\ \text { Insurance Expense-Factory } & 1,505.28 & \text { Supplies Expense-Factory } & 18,063.36\end{array} Contract or form of ownership is a ______________? B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. An annuity whose based on the stock market index? 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 \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ The employer is the owner . Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. What insurance concept is associated with the names Weiss and Fitch? C. The policy is an aleatory contract D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. Premiums are not tax deductible as a business expense. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. D. Represent the insured's interest D. The ratings are available to the public D. The policy is a bilateral contract The premium is level and guaranteed not to increase. B) Fiduciary refers to a position of trust. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. I. -age 100. A) An indeterminate premium reduction policy is a policy in which the premium is guaranteed for an initial period, then the insurer can charge up to a maximum premium charge that is specified in the policy. 3)Rider expires 60,65,75. C. Whole life b) Fluctuates. 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. What is the primary source of info used to determine insurability by the underwriting department? Which is generally true regarding insureds who have been classified as preferred risks? A) the agent. . By William Lb Qtjetjx, Author of . (a) They increase at an increasing rate. Jul3117,000\begin{aligned} Term life insurance provides pure death protection. The County is administered by a five-member Board of Supervisors who are elected for four-year terms Your device, make and model. B. D) Insurance covers intentional losses as well as unintentional. Health insurance decreases your healthcare costs. 1)Statement of continued good health B. Twisting -policy holder adheres to it _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. 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. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. a) A medical examination States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. 1) cash value earns interest (b) current assumption whole life. It is most appropriate when an insured needs lifetime protection. d) Graded Premium. (receive dividends & the right to vote). The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. They keep a high percentage of any interest earned on their policies \end{aligned} ________________ are the person who receives benefits payable upon death. The shifting of risk of loss to a larger homogeneous group is known as what? A. a) Withdrawals are not taxable. 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 remaining amounts should be charged to selling and administrative activities. -But pays you interest, 1)Fixed annuity Whole life policy. C. Loss of personal income 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? II. -A Mec will receive unfavorable tax treatment (a) I only (b) II only Which of the families below is likely to have the least need for a large life insurance policy? Which of the following is an example of liquidity in a life insurance contract? Which of the following is NOT an example of a business use of Life Insurance? Which model is the better fit for the data? good health a) More active. b. C. Conditional contract 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. A. All of the following statements about ordinary life insurance are true EXCEPT. Which of the following is a physical hazard? All of the following statements are true regarding mortgage protection insurance EXCEPT. There is a limit for a withdrawal and the insurer charges a fee. 1. D. The face amount remains the same throughout the life of the policy. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? -pays an additional death benefit if the insured dies from an accident The death benefit varies according to investment experience. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ B. IRS has no jurisdiction 14,500 \\ \hline & \text { Jul 1 } & 55,000 \\ d) Paid-up option. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). An insured becomes disabled at age 22 and can no longer work. C. group credit life insurance does not build cash values. A surplus lines broker deals with direct writing companies only Medical exams provide information on current health. B. Beneficiarys age (a) limited-payment whole life insurance 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 d) 15 years. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. (Medic Information Bureau)? - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. Why do most states have a waiting period for couples applying for marriage licenses? An applicant is denied insurance because of information found on a consumer report. 2)when benefits begin A conditional or binding receipt is given when an applicant does what? \textbf{For the Month Ended October 31, 2017}\\ What type of insurer has no capital stock? Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. D. They can decide when to pay their monthly premiums. a) Aleatory &\begin{array}{lr|rr} \hline \text { Jul 1 } & 22,000 \\ d) Making claims payments which clearly indicate under which coverage payment has been made. - 20 pay life-premiums paid for 20 years and paid up at 65 What type of policy does the insured most likely have? Use the indirect method. All of the following statements regarding contracts of indemnity are true EXCEPT a. C. The insured may retain part of a risk through deductibles. When an applicant pays the initial premium the agent will give them a what? Who is not a party to the contract and receives the benefits when the insured dies? ($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?" D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D. Alien -its a rider Instructions & &&\textbf{ Quarter } \\ Statement of good health Chapter 11 - Life Insurance. Conviction of a felony involving moral turpitude. 2)Decreasing Term Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. 1. Explain your answer. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. C) common stock 4. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT ? Jul3125,500\begin{aligned} \end{array} O b. 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? \end{array} Quarterly working capital levels for your firm for the next year are included in the following table. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . The __________ branch of the state government influences public policy regarding insurance laws. Any gain in the policy's cash value is . D. Accident Exclusion Categories One sided contract is a ______________ contract. The following are all true regarding risk management, except: A. 5)Survivorship Life Policy (policy holder pays themselves). D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. Which of the following would provide an underwriter with information concerning an applicant's health history? b. Compensating executives 3)semi-annual 2)Increase the face value \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? The policy is issued for one year and may be renewed annually with evidence of insurability. To sell variable insurance what must you have? (b) They increase at a decreasing rate. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded C. Premiums are tax deductible by the key employee B. ~~~\text{Rent on factory facilities}&60,000\\ Correct: A. -The insurer would pay the face amount of the policy minus the past due premium. Pure Risk. -cash value options D. Premiums are tax deductible as a business expense, B. Correct: A.A peril. II. What are two reasons that people deposit money in banks? An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Foreign. -policyowners right provision 1) the premium amount When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? Correct: B. Being young and healthy means you can skip out on health insurance. D. The benefit is received tax free 10 year level term A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. It is the specific cause of loss. Retention, Avoidance, and Transfer are all _________________. What is the difference between renewable policy holder & Insurer? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. Permanent Insurance have 3 words in common, what are they? B) They illustrate the nonguaranteed elements of the policy. d) Performing reviews of insured's coverage. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Can term insurance be both renewable and convertible? & \text{ ???? } The replacing company notifies the replacement company. 3)Explain any riders or exclusion 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? InventoryJul1Jul3122,000???? e. The total of costs recorded on all sales invoices for the month is$654,052.00. Term life insurance provides the largest amount of coverage for the lowest amount of premium. 4. (b) The face amount of the policy is paid if the insured lives to age 65. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. a) Premium amounts and surrender values Annually renewable term policies provide a level death benefit for a premium that 3) policy builds cash-value a. whole life paid at 65 ____________ is a statement that is true to the best of the persons knowledge that is making the statement. B. 4. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health 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) Accumulated at interest Correct: D. Concealment. Endowments means policy is what(2) things? B. 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. &\begin{array}{lr|rr} Prior to October 2017, the company had been profitable every month. still matures at age 100, -premium is paid off at one time Can a misrepresentation render the contract void if the misrepresentation is material to the risk? Only one party is giving a legally enforceable promise- A one-sided contract is what? AccountsreceivableJul1Jul3121,000???? (a) matured. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution &\text { Cash }\\ a) The policyholders or stockowners of the company Steven prints a pamphlet to advertise his life insurance business. 3)riders & exclusions All of the following are common characteristics of this coverage EXCEPT What constitutes the acceptance of an offer? Which of the following is true regarding the beneficiary designation of the former spouse. \end{array} \\ B. Buy-Sell Agreements pay in the event of a medical emergency D. Reduction is a method of managing risk. Investors become more risk averse. The following information is taken from the records of Hammond on November 30 of the current year.
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