2)Decreasing Term When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. Which of the following is TRUE regarding assignment rights for . \hline \text { Jul 1 } & 5,500 &&\\ a. whole life paid at 65 CPI (consumer price index) without evidence. Level-increasing face value. 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. 2)quarterly 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? b) 10% for early withdrawal C) purchasing family term insurance. In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? b) Reduced paid-up c) Helping insureds to file claims What is the MIB? D. Agents report. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights 2)not payable in conjunction. d) Older. Cash value is the same as ___________ when the policy matures. The designation will be void/. D) the minor in a juvenile policy. 4) Joint-Life policy(business part) Insurance policy of 2 or more -usually mutual fund security Beneficiary's age is not a suitability factor. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). 3)2 Death benefits-(level/increasing) \text{ ???? } 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? If you don't have health insurance, you pay all costs for healthcare and medical emergencies. The face amount decreases as the amount owed on the mortgage decreases. 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? The applicant's medical background is addressed in Part 2 - Medical Information. may not be altered by an agent and must clearly state that it is not part of the contract. &\text { Retained Earnings }\\ Hammond estimates that it will manufacture 5,000 televisions next year. Jul3119,500\begin{aligned} 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. The applicant accepts the invitation by paying the ___________. c) Fixed premium A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. B. Aleatory contract B) The plan is funded by permanent insurance only. insured is always the borrower & the beneficiary=lender 2)Foreign Insurer After Alex has made 20 premium payments, his life insurance policy is considered 1. Which of the following types of insurance policies would perform the function of cash accumulation? ADD( Accidental death and dismemberment??? 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. 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. d) Graded Premium. Weiss and Fitch are two of these services, although there are more. Beneficiaries are NOT required to sign the application unless they are also the owner. 1)increase cash value In order for the contract or policy to be valid or legal? Something of value is a __________________. Costs of training a replacement c. Using the payback period, which project should Bill choose? (b) variable life insurance c) Conditional a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . (2), 1)HIPPA A key person insurance policy will pay for costs of running the business and replacing the employee. D. group credit insurance must have a suicide clause . 2)attorneys 2) profits are returned as dividends B. IRS has no jurisdiction Which of the following is a financial rating service? 4)explain policy & provisions 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. In this case, the applicant will most likely need to fill out a Statement of Good Health. (c) conversion provision All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. \end{array} \\ Correct: A.A peril. Claim is still paid with an adjustment to the benefits. -The insurer would pay the face amount of the policy minus the past due premium. Members are assessed to fund the corporation. Rates (1), In Universal life, what options can the policy owner have with the premium payments to do? Estate conservation 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 of the following characterize term life insurance, EXCEPT: Select one: a. b) 5 years only. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. The application is the basic source of information an insurer uses in the risk selection process. a) Year only. An annuity whose based on the stock market index? (d) free look provision. c. Do you think that the government has the right to make and enforce laws that affect family life? O b. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. a) Accumulated at interest (Choose from the following options) Legal Purpose 1) a policyholder votes on the Board of Directors B. 1) cash value earns interest What type of policy does the insured most likely have? the underwriting process is approved for: 2)Increase the face value 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 B. A. The policy does not go into effect until the premium has been collected. b) Index used by stock companies Use the indirect method. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. (b) current assumption whole life. -sex doesn't determine eligibility. &\text { Accounts receivable }\\ has reached its final destination and can be paid out in full. d) Performing reviews of insured's coverage. A false statement in the application for insurance is_____________. B. Nonadmitted 2)FCRA(fair credit reporting act) checks MIB report. The shifting of risk of loss to a larger homogeneous group is known as what? Steven prints a pamphlet to advertise his life insurance business. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. (b) Prepare a correct income statement for October 2017. \end{array} AccountsreceivableJul1Jul3121,000???? The 4 characteristics of a universal life policy are? \hline & \text { Jul 1 } & \begin{array}{r} The primary purpose of buying an annuity is? 3)according to the source of annuity income The failure to disclose known facts is what? Nature of risk D) Claims result from losses by a peril insured against in an insurance policy. ? All of the following are business uses of life insurance EXCEPT -policyowners right provision C. Social Security works exactly same as private insurance. 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. 14,500 \\ An Insurance Broker is responsible for what? b. it frequently includes coverage for losses due to casualty and theft. The storage of flammables in a fireproof container. Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. Who represents the insured when dealing with insurance companies? \end{aligned} Payor benefit/Clause is always a _________. D. Solicit applications on insurer's behalf Prepare the following details: Mobile number, serial number, or IMEI. 3)Rider expires 60,65,75. -Not invested in stock market 3)Increasing term adds face value. 2)Straight Life Life insurance proceeds AccountspayableJul1Jul3114,500??? \end{array} Their premiums are lower Correct: B. 2)non-qualified plans 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. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. B. \textbf{EMPIRE COMPANY}\\ Correct: C. Unilateral contract. 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. b) Universal Life B. & \text{ ???? } All of the following are common characteristics of this coverage EXCEPT 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution D. Breach of warranty 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. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? The __________ branch of the state government influences public policy regarding insurance laws. a) Because the insured is currently not a drug user, his policy will not be affected. b) Failure to promptly settle a claim when liability has been clearly established 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 B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. -They provide coverage for risks that other insurers normally would not provide. Correct: A. C. Waiver of Estoppel d) Policy dividends. Term life insurance provides the largest amount of coverage for the lowest amount of premium. &\text { Rental Class }\\ &\begin{array}{lr|rr} A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. 3) Equity-Index annuity. 3)they provide insurance to members. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? 3)premium is collected b) Cost of living rider. See Answer. Concerning insurance, the definition of a fiduciary is Instructions (b) They increase at a decreasing rate. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. Which of the following is NOT an example of a business use of Life Insurance? Pro rata liability applies. Pertaining to insurance, what is the definition of a fiduciary responsibility? C. it is often experience-rated, with premrums based on expected losses. 1)absolute assignment-all rights are assigned D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Estate Creation B. D. Financial Experience. ~~~\text{Utilities expense}&12,000\\ James purchased yearly renewable term insurance. C. Insured's annual expenses C. Medical Background An individual applies for a life policy. Consumer report All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. C. Premiums are determined by age sex and occupation of each individuals certificate holder. A persons assets & liabilities at their time of death. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ \end{aligned} 4)settlement options, 1)stand alone policy Hospital bills of the key employee B. Misrepresentation Empire Company is a manufacturer of smart phones. B) bonds 3. What is the term for a cause of loss, such as the theft of a car? C. Tax Status a. M327. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. c) Variable Premium Who is responsible for making sure the application is completed properly and all necessary info is obtained? ~~~\text{Raw materials purchases}&\$264,000\\ -cash value options He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. (a) limited-payment whole life insurance When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? -age 100. ______________ is defined as restoring the insured to the same financial condition as before the loss. A. Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. (a) They increase at an increasing rate. d. 3)2 death benefit option For this amount of production, total factory overhead is estimated to be $396,000.00. What is the purpose of a suicide provision within a life insurance policy? 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? (c) face amount of the policy and the legal reserve. Your device, make and model. What is the primary source of info used to determine insurability by the underwriting department? Most policies can be renewed for additional periods without evidence of insurability. A SEC registration. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? To sell variable insurance what must you have? An Applicant inaccurately representing information on the application is guilty of: A. An insured owns a life insurance policy. also known as acceptance. when the applicant/owner is not the insured-3rd party Represent the insured's interest Limited-Pay Life & Single-Premium Policies? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). Conditional contract means the policy holder does what? B. C. It's a decreasing term insurance. _______ pays dividends to the stock holder. (b) reduced. Liquidity in life insurance refers to availability of cash to the insured. What is the primary source of info for the underwriting department to determine insurability? 3)increase the length of coverage (economy). 4)Explain the policy and its provisions d) The Medical Information Bureau. C. Premiums are tax deductible by the key employee D. Viatical settlement. The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} II. 3. 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. Why?". Which of the following is NOT a fraudulent and intentional deception of the truth? 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 4. Out of 20 yr or 30 yr which policy is less expensive? All of the following statements are TRUE concerning Debtor Groups EXCEPT What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? c) Needs approach S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Which of the following best illustrates a What are the permanent working capital needs of your company? Waive the premium if the INSURED becomes totally disabled. See Answer. When must insurable interest exist in a life insurance policy? \end{array} (Choose from the following options) The NAAR for a life insurance policy is the difference between the Reinsurance has 2 types of policys, what are they? All of the following are true of negligence, except: a. The Waiver of Cost of Insurance rider is found in what type of insurance? Conviction of a felony involving moral turpitude. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. d) The Guaranty Corporation. Modification to a policy is a _______________? 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. -pay for certain time and stop B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. \end{array} 3. b. (c) both I and II d. falsely believing that a spouse has been When does the grace period begin and how long is it? 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. What are the temporary needs? Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. \hline \text { Jul 31 } & 3,000 All of the following statements concerning coinsurance are true, EXCEPT . A. What are (4) ways annuities are classified? b. persistent fear of germs ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ ________________ are the person who receives benefits payable upon death. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same 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. I. -Follows all conditions of contract & pays premium, -insurer says how policy works The Boyle family can be described as a Which of the following is usually true of a participating life insurance policy? C) They must contain a warning that actual results may vary. Buy-sell agreements are normally funded with a life insurance policy. C. Buy-Sell agreements are normally funded with a life insurance policy don't pick binding receipt at all on test. The ___________ controls all rights of the contract. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. C. Medical Background Which of the following is a physical hazard? (d) indeterminate-premium whole life. b) Fluctuates. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. It is the specific cause of loss. 4)policy matures at age 100. Past-due interest on a policy loan is added to the total debt. AKA-payout phase. 3)mortality charge. A monthly deduction is made from a policy's cash value for the cost of insurance protection. 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? Are insurance company underwriters allowed to discriminate? C) Completing pre-licensing training. Statements in the application that are guaranteed true but later found to be false may result in what? When applicant is not the insured ______________ must exist. 1. ($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?" a. Group life insurance is most often issued as guaranteed annual renewable term. a) Agent's report RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. The death benefit varies according to investment experience. Who is not a party to the contract and receives the benefits when the insured dies? b) A producer who handles insurer funds in a trust capacity. B) The parent is responsible for the premium. As her friend, you have been asked to review the income statement and make necessary corrections. B. 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. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. -kids till 21 2)standard-average Most insurance policies contain a specific limit that an insurer will pay for a single claim. The correct answer is: Premiums are typically paid by the lender. Only the MIB will provide information about an applicant's medical history. good health All renewable term policies are accepted without__________ and only with_____ collected. Last year, the couple got divorced. An insured is driving her automobile and strikes a large pothole that . 3) policy builds cash-value d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date 25,500, AccountspayableJul114,500???? Only one party is giving a legally enforceable promise- A one-sided contract is what? a) Consumer Privacy Act C. Department of State 1)temporary (c) variable life insurance. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. a) Aleatory \hline & \text { Jul 1 } & 55,000 \\ -low commissions -Voting. The minimum FREE LOOK period is how many days? What is the difference between renewable policy holder & Insurer? A. Correct: B. Correct: A. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Which of the following statements concerning buy-sell agreements is true? All of the following statements are true regarding mortgage protection insurance EXCEPT. 1)Statement of continued good health An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. 2. insurable interest must exist. D. An individual has an insurable interest in her or her own life. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders.

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