Chapter 3 part 1 Flashcards | Quizlet \end{aligned} _________ is a determination that a statement made as a warranty, or true. C) Completing pre-licensing training. &\begin{array}{lccc} Insurers use this law in order to predict certain types of losses and set appropriate premiums. a) A retail clerk. Insurance companies can charge an interest rate based on the policyowner's credit report. Unit 27 Flashcards by Lauren Pulido | Brainscape Department of Defense 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. Twisting EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} 1) the premium amount considers Lloyds of London an Alien insurer There is no limitation on the number of key employee plans in force at any one time. D. Gender. -The insurer would pay the face amount of the policy minus the past due premium. (d) endowment insurance, Rachel needs permanent life insurance. \textbf{For the Month Ended October 31, 2017}\\ Chapter 14/1: Group Health Insurance Flashcards | Quizlet 3)Explain any riders or exclusion True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles \text { Type II } & \$ 20 & \$ 30 & \$ 40 1)Statement of continued good health 2) Binding Reciept. c) Smaller. Which of the following statements about limited-payment life insurance is true? Who gets $$money when the policy holder dies? 4)defined contribution plans. 1.1K 64K views 1 year ago In this video I show you how to one shot Correct: B. Solved 55. All of the following statements regarding | Chegg.com B) the applicant. 4)policy matures at age 100. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? ~~~\text{Raw materials purchases}&\$264,000\\ a) Aleatory Is claim still paid if there is a misstatement of age or sex? It is most appropriate when an insured needs lifetime protection. Universal Life is also known as two things what are they? ch2 Flashcards | Quizlet cash value increases while face value remains the same. What are the permanent working capital needs of your company? C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. -If the insured dies, the policy payed out the PRINCIPAL SUM ~~~\text{Advertising expense}&90,000\\ DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. (D The employer is the owner, payor and beneficiary of the policy. 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. * 50% is paid 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. Countersign insurance contracts Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. Abortion in the United States - Wikipedia Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. -Prepays portion of face amount if diagnosed with terminal illness. Payor benefit/Clause is always a _________. B. d) 50% tax on the amount not distributed as required. If applicant is not the insured- then insureds signature is required A. -has cash value invested in the stock market Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. The 3 categories of private insurers site of incorporation? (a) blended family. A ____ contract requires that both parties perform certain duties. 3)certified public accountants, Is insurance that is provided by the Federal or State government When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? Beneficiary's age a) Because the insured is currently not a drug user, his policy will not be affected. Why do most states have a waiting period for couples applying for marriage licenses? Involuntary Risk The parties in the insurance contract consist of whom? Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? (c) both I & II (d) neither I or II. 1)cont. ADD( Accidental death and dismemberment??? When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? A persons assets & liabilities at their time of death. What does it mean when a policy is limited pay life? C. Risk Value-added tax - Wikipedia 6/1 Quiz: Group Life Insurance Flashcards | Quizlet Insurance is an important tool to manage risks, but often unavailable to poorer households. D. Claim History Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. A) the agent. A. b) The agent's report Accelerated Living Benefit/Death Benefit is what type of rider? & \text{ ???? } Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date 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 storage of flammables in a fireproof container. The policy is a conditional contract Correct: A. B. The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as D. Viatical settlement. Insurance is not designed to cover _____________ losses. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. B. d) Paid-up option. (d) annual premium and the annual policy dividend. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. An insured becomes disabled at age 22 and can no longer work. You cannot sell a variable policy without what? b) Index used by stock companies 2)Decreasing term(premium is low) declining face value Exclusions always exist, and there is a reason for each one. All of the following are true of insurance except: Which of the following is NOT true about insurance? Accelerated Living Benefit/Accelerated Death Benefit? How do premiums for yearly renewable term insurance change as an insured gets older? A. contract of adhesion B. Beneficiarys age Is There An Objective Morality? IAI TV A. She has limited income and significant life insurance needs. c. Using the payback period, which project should Bill choose? (c) The number of times the coverage can be renewed is limited. In order for the contract or policy to be valid or legal? b) Failure to promptly settle a claim when liability has been clearly established 17,000, InventoryJul122,000???? The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. All of the following statements concerning coinsurance are true, EXCEPT Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. 4. 3)Consideration All of the following statements about the characteristics of Social Security are true EXCEPT A. Something of value is a __________________. c) Conditional B. cheating. (d) free look provision. b) 10% for early withdrawal D. The flexible premium. Which of the following statements about endowment policies is true? 4. When does the grace period begin and how long is it? How does having children affect the decisions that couples must make when considering a divorce? D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers \end{aligned} a. 4) Joint-Life policy(business part) Insurance policy of 2 or more - 20 pay life-premiums paid for 20 years and paid up at 65 3)2 Death benefits-(level/increasing) He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. What is a statement in the application guaranteed true in all respects? What happens when a policy is surrendered for its cash value? 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 . D. They can decide when to pay their monthly premiums. Pertaining to insurance, what is the definition of a fiduciary responsibility? Are insurance company underwriters allowed to discriminate? -guarantee a stream of income to the person purchasing it known as the annuitant. Which of the following is NOT an example of a business use of Life Insurance? c) Coverage ends but the policy can be reinstated at any time. Cash value is invested in the stock market. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. -Not invested in stock market EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} AKA-payout phase. Difference between Universal Life Insurance and Whole Life Insurance? d. It does not require a duty to be owed. a. mentally counting backward from 1,0001,0001,000 2) profits are returned as dividends C. The policy is an aleatory contract D) Obtaining a bachelor's degree. D. Premiums are tax deductible as a business expense, B. c) 15% for early withdrawal 1)physical exam \end{aligned} A mutual insurance company does not have what? Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Fraud 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. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. B. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights Past-due interest on a policy loan is added to the total debt. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. 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? Premiums are not tax deductible as a business expense What constitutes the acceptance of an offer? The 7 paytest is used to determine if a policy is a _______? 2)people under the influence of drugs or alcohol According to the entire contract provision, what document must be made part of the insurance policy? Pro rata liability applies. For this amount of production, total factory overhead is estimated to be $396,000.00. ____________ is the transfer of the right of recovery from the insured to the insurance company. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ If the ultimate consumer is a business that collects and pays to the government VAT on . Estate conservation 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. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. Only one party is giving a legally enforceable promise- A one-sided contract is what? All of the following would be considered to be rebating EXCEPT B. Buy-Sell Agreements pay in the event of a medical emergency Health insurance decreases your healthcare costs. Liquidity in life insurance refers to availability of cash to the insured. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. (c) Most policies can be converted to a permanent life insurance policy. Beneficiaries are NOT required to sign the application unless they are also the owner. D) the minor in a juvenile policy. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. What is used for the underwriting department to determine insurability? c) A person who handles assets or money belonging to others. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. An agent and an applicant for a life insurance policy fill out and sign the application. D) Claims result from losses by a peril insured against in an insurance policy. ch 7 Flashcards | Quizlet Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? \end{array} c) Policy loans are taxable distributions. Which of the following is true regarding the beneficiary designation of the former spouse. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. D. Financial Experience. Misappropriation or illegal withholding of the policyholder's money. insured is always the borrower & the beneficiary=lender When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? b) Promptly forwarding premiums to the insurance company Terms that apply to the insurer not the applicant. b) Copies of illustrations and application Acceptance Which of the families below is likely to have the least need for a large life insurance policy? 1)premium payment b. 1)Whole Life B. Nonadmitted Question: 55. c. It is the failure to use ordinary care. Only the MIB will provide information about an applicant's medical history.