(d) neither I nor II. Who would be eligible to obtain SGLI? b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). In order for the contract or policy to be valid or legal? Is interest always gained in Universal Life Policy? A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. 1)cont. b) Human life value approach B. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. Who represents the insured when dealing with insurance companies? Which type of life insurance makes sense for someone in this situation? 2)Family Income(decreasing term-policy) A mutual insurance company is owned by who? How does having children affect the decisions that couples must make when considering a divorce? 2)Explain and collect any ratings (economy). ___________ is the persons whose death triggers payment. Correct: B. Appoint a solicitor as his or her representative All of the following are true of negligence, except: a. -receiving dividends(when declared) ? 1) preferred risk b) Conditional receipt The employer is the owner . What is the MIB? Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. A. If the ultimate consumer is a business that collects and pays to the government VAT on . D) An agent's report and inspection report provides personal information. C. Tax Status James purchased yearly renewable term insurance. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. 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. The minimum FREE LOOK period is how many days? Premiums are not tax deductible as a business expense See Answer. A __________ represents the insured. It is the specific cause of loss. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights The cost of insurance protection is referred to as what? 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. \underline{\hspace{40pt}}. 2)Decreasing term(premium is low) declining face value When the application is submitted without the premium its considered an invitation for the insurer to make an offer. A life insurance policy is exchanged for an annuity. -the insurer sets the terms of the contract and the applicant must adhere to them. Permanent Insurance have 3 words in common, what are they? What happens when there is a Misstatement of age or sex? Correct: A Insurance . 2)can be sold as a rider to a whole-life policy. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? 2)administered charge When an applicant pays the initial premium the agent will give them a what? \hline \text { Jul 1 } & 5,500 &&\\ d) The insurer will sue the insured for committing fraud. c) Term life Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. D. Reduction is a method of managing risk. Business partners have an insurable interest in each other &\text { Cash }\\ (c) term insurance Where does group-life insurance come from? &\text { Retained Earnings }\\ Long term- the longer the policythe more spread out the policy premiums are. A key person insurance policy can pay for which of the following? \end{aligned} 3. IRS classification of a policy that is overfunded? -paying for certain time and stop. The NAAR for a life insurance policy is the difference between the (a) matured. baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. A. Which is generally true regarding insureds who have been classified as preferred risks? Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} If you don't have health insurance, you pay all costs for healthcare and medical emergencies. C. Department of State Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. -below market interest rates on borrowing A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. The Boyle family can be described as a 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? -Take it or leave it contract (b) single-parent family. The ___________ controls all rights of the contract. Address of his principal office Adverse selection is well controlled. The parties in the insurance contract consist of whom? O d. (b) Cash value accumulation is slow to moderate. An Insurance broker is responsible for what? Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Originating policy 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. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. -its a rider A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. The cash value of availability to the policyowner A person who negotiates insurance contracts on behalf of an insured. \end{array} The debtor does not have an insurable interest in the life of the lender. 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. 17,000, InventoryJul122,000???? The 4 characteristics of a universal life policy are? Alex, age 26, purchased a 20- payment whole life insurance policy. c. Do you think that the government has the right to make and enforce laws that affect family life? 2)standard-average Past-due interest on a policy loan is added to the total debt. b) Larger. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. 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. There is a limit for a withdrawal and the insurer charges a fee. Which of the following is TRUE regarding assignment rights for . Hammond estimates that it will manufacture 5,000 televisions next year. &&\\ a) The policy can be converted to term coverage. (a) universal life insurance. d) Buyer's Guide. Executive office If someone dies within the Grace period, what happens? -policyowners right provision D) Claims result from losses by a peril insured against in an insurance policy. 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) They increase at a decreasing rate. & \text { Depr } & 3,000 \\ What is a statement in the application guaranteed true in all respects? Correct: D. Concealment. -receiving dividends(when declared) -usually mutual fund security Various life insurance programs for people who served in the military are called ______________? b. it frequently includes coverage for losses due to casualty and theft. Which of the following statements about limited-payment life insurance is true? Economics questions and answers. (Hint: Take a look at the Theory of Reasoned Action.). A. ~~~\text{Rent on factory facilities}&60,000\\ (c) variable life insurance. According to the entire contract provision, what document must be made part of the insurance policy? D) Obtaining a bachelor's degree. D. The benefit is received tax free "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. Only one party is giving a legally enforceable promise- A one-sided contract is what? a) More active. What else must he include? Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. 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. Accelerated Living Benefit/Death Benefit is what type of rider? _______ pays dividends to the stock holder. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Whats the "take it or leave it contract"? A persons assets & liabilities at their time of death. 3)they provide insurance to members. D. Funding against general company financial loss A producer wishing to appeal the final order of the commissioner would appeal to???? \end{array} 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} The County is administered by a five-member Board of Supervisors who are elected for four-year terms c) Low-income individuals and families b) State attorney general 1) cash value earns interest a) Tax-qualified Newborns after how many days become covered in a child rider? Misrepresentation, Concealment and Deceit are all examples of what? -kids till 21 An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. 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. Jul3119,500\begin{aligned} 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. 1)temporary Pro rata liability applies. What kind of penalty would the IRA owner pay? Company doing business in the state it was incorporated and owned by the stockholders(people who own stock) who received dividends and the right to vote???? &\begin{array}{lr|lr} The issuance of a _________ is the result of the acceptance of an offer. All of the following are true of insurance EXCEPT It transfers risk. For example, a claim will be paid only is there has been a covered loss. good health Statements in the application that are guaranteed true but later found to be false may result in what? Increasing term (3), 1)bank trust officer (a) capital retention approach If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? Cash value is invested in the stock market. a. Who is not a party to the contract and receives the benefits when the insured dies? C) purchasing family term insurance. -the premiums are paid for a limited time only. b) 10% for early withdrawal Beneficiary's age ~~~\text{Utilities expense}&12,000\\ Tax-qualified annuities are subject to IRA maximum contribution limits. -Not a true insurance company (receive dividends & the right to vote). -greater potential to grow the cash value but there is no guarantee C. Whole life The applicant's medical background is addressed in Part 2 - Medical Information. O b. Policyholders If the insurance carried is less than required, the insurance may not cover the whole loss. B. 2)Foreign Insurer The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. and is NOT a party to the contract. Rebating is an unfair trade practice and is regulated by law. B. Marital Status Waive the premium if the INSURED becomes totally disabled. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Investors become more risk averse. Agent Sam is using the human life value approach to assess Mary's life insurance needs. ~~~\text{Advertising expense}&90,000\\ B. Twisting a) Because the insured is currently not a drug user, his policy will not be affected. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same c) Guides describing company financial integrity All of the following are common characteristics of this coverage EXCEPT Benefits received are considered income taxable You cannot sell a variable policy without what? There are 2 parties of the contract- what are they? d. The total of all cost sheets completed during the month is $628,880.00. C. Application D. The face amount remains the same throughout the life of the policy. 2)when benefits begin All of the following statements about term insurance are true EXCEPT. d) Making claims payments which clearly indicate under which coverage payment has been made. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT -If the insured dies, the policy payed out the PRINCIPAL SUM D. The benefit is received tax free. Empire Company is a manufacturer of smart phones. 2) premiums do not change -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? They become permanently disabled Which of the following about a VUL insurance policy is (are) true? Which of the following best illustrates a *The insured is diagnosed with terminal & chronicle illness c) Comparisons with similar policies 1)Whole Life It is used to pay off the balance on the mortgage. -has cash value invested in the stock market There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. The issuance of a binder is the result of the ___________________ of an offer. D. Workers compensation. The benefit is subject to the exclusionary rule 2)Legal Purpose When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. \textbf{For the Month Ended October 31, 2017}\\ Which type of risk involves the possibility of loss or gain? Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles c) An agent offers tickets to a baseball game as an inducement to buy insurance. Credit life &\text { Rental Class }\\ What does it mean when a policy is limited pay life? Receipt Breach of warranty 3)2 Death benefits-(level/increasing) Department of Defense 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) Cash value accumulation is slow to moderate. d) Blackout approach. D) the minor in a juvenile policy. What will probably happen? 3)Alien Insurer. Which of the following statements about endowment policies is true?
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