all of the following are true of insurance except

all of the following are true of insurance exceptshallow wicker basket

Which of the following is NOT an example of a business use of Life Insurance? \textbf{EMPIRE COMPANY}\\ c) Policy loans are taxable distributions. Agent Sam is using the human life value approach to assess Mary's life insurance needs. The policyowner has a variety of options for investment of the cash value. b) Copies of illustrations and application According to the entire contract provision, what document must be made part of the insurance policy? 14,500 \\ -policyowners right provision 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? In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? a. mentally counting backward from 1,0001,0001,000 c) Smaller. 3)they provide insurance to members. A. \text{ ???? } D. Funding against general company financial loss Which of the following statements about endowment policies is true? In this particular instance the applicant did not commit intentional fraud. CPI (consumer price index) without evidence. 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) Conditional receipt C) purchasing family term insurance. 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. D. Term life. An insured owns a life insurance policy. A producer wishing to appeal the final order of the commissioner would appeal to???? Cash values can be borrowed at any time (b) face amount of the policy and the total premiums that have been paid. D. Concealment A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. \end{array} 4. b) Human life value approach 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. A. Mutual life policy. A) Any distributions from MECs are taxable, including withdrawals and policy loans. What are two reasons that people deposit money in banks? a) Lump-sum approach Misrepresentation, Concealment and Deceit are all examples of what? \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ Which of the following is NOT an allowable 1035 exchange? a) Agent's report Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? c. Premiums may be raised at renewal d. Group term insurance may cover the . IRS classification of a policy that is overfunded? A. (b) II only 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. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? (c) both I and II D. Agents report. 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. Receipt Statement of good health d) Making claims payments which clearly indicate under which coverage payment has been made. \hline && \text { Jul 1 } & 65,000 \\ If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? They become permanently disabled B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. Exclusion Categories (2), The current market will influence the cash value C. Payment of premium 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. C) the proposed insured. Which of the following is true regarding the beneficiary designation of the former spouse. O d. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. A mutual insurance company is owned by who? 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. All of the following statements about ordinary life insurance are true EXCEPT. D. Accident d) The policy can be reinstated by paying back all policy loans and premiums. Which of the families below is likely to have the least need for a large life insurance policy? -Not invested in stock market a) Accepted accounting principal. Executive office &\text { Retained Earnings }\\ ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ c. thoughts of harming a neighbor Predicted needs of the family after the insured's death are used in the needs approach. -cash value can lose value. The policy is a contract of adhesion -7 pay test is used to determine If a policy is a MEC. Which is generally true regarding insureds who have been classified as preferred risks? 1) preferred-low Rating codes are assigned to show financial strength or weakness of each company rated B) The plan is funded by permanent insurance only. 4)defined contribution plans. 4)explain policy & provisions It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. The policy is issued for one year and may be renewed annually with evidence of insurability. 2)non-qualified plans 4)settlement options, 1)stand alone policy Any gain in the policy's cash value is . (b) Any withdrawal of cash value reduces the death benefit. a) Tax-qualified Accelerated Living Benefit/Death Benefit is what type of rider? Is claim still paid if there is a misstatement of age or sex? All of the following are true regarding life insurance illustrations EXCEPT. 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???? \end{aligned} 2)standard-average Insurance is designed to cover both intentional and unintentional losses. To sell variable life insurance policies, an agent must receive all of the following EXCEPT -The insurance dept. 3)Increasing term adds face value. How do premiums for yearly renewable term insurance change as an insured gets older? C. A husband or wife has an insurable interest in their spouse 3. compulsion? c) Copy of the original application Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. The applicants(policy owner) b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. \text{Less: Operating expenses}\\ Reinsurer Assuming company. I. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. DONT PICK IT!!!!!! What are (4) characteristics of permanent insurance? Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? \end{array} A. Foregin Nonparticipating policy. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? Alex, age 26, purchased a 20- payment whole life insurance policy. What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurable? -then picks a contract. Which method makes the most sense for her to employ? 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. C. Department of State 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. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. The __________ branch of the state government influences public policy regarding insurance laws. ? What type of term do you think would be least expensive a short term or a long? C. The insured may retain part of a risk through deductibles. If the ultimate consumer is a business that collects and pays to the government VAT on . b) Promptly forwarding premiums to the insurance company 2. (b) They increase at a decreasing rate. 5)Explain when coverage begins d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Pertaining to insurance, what is the definition of a fiduciary responsibility? (b) Prepare a correct income statement for October 2017. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT B. Buy-Sell Agreements pay in the event of a medical emergency (c) both I & II (d) neither I or II, Diane is a single parent. 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. Jul3117,000\begin{aligned} 1)Domestic Insurer What are the two options in death benefit options? Whats the cheapest type of permanent insurance? A. c) Whole Life All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. b. \hline && \text { Jul 31 } & 111,000 Being young and healthy means you can skip out on health insurance. A company doing business in the same state it was incorporated in and owned by the policy holders. \end{array} \\ a. She meets the definition of total disability under Social Security. 3)Family Policy(Limited but all fam members paid) A. The correct answer is: The premium decreases to zero by the end of the policy period. 3) Retaining the risk. A FINRA registration. C. Hazards 1)cont. b) Failure to promptly settle a claim when liability has been clearly established Life expectancy has increased in the U.S. over the last century. -kids till 21 Correct: A. Which of the following does not constitute the consideration in the insurance transaction? D. Delivery receipt. 5)coverage begins What must exist at the time of the application? Conditional Contract Conviction of a felony involving moral turpitude. -its a rider Liquidity in life insurance refers to availability of cash to the insured through cash values. 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. . 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. 1)Whole Life Who is responsible for making sure the application is completed properly and all necessary info is obtained? Premiums are taxable to the employee What else must he include? C. The insurer is always required to pay the . a) A retail clerk. All of the following are business uses of life insurance EXCEPT By William Lb Qtjetjx, Author of . The applicant has been shown to be a poor personal credit risk. Fraud Foreign. (c) variable life insurance. Reinsurance has 2 types of policys, what are they? C. Buy-Sell agreements are normally funded with a life insurance policy Consumer report All of the following are methods of payment? They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? If someone dies within the Grace period, what happens? The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. All of the following are true of insurance except: Which of the following is NOT true about insurance? (3), WHat is the difference between universal and whole life policies? - 20 pay life-premiums paid for 20 years and paid up at 65 -Not a true insurance company As her friend, you have been asked to review the income statement and make necessary corrections. The replacing company notifies the replacement company. 1)physical exam -cash value options 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. M327. 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 Cash value is the same as ___________ when the policy matures. a) Because the insured is currently not a drug user, his policy will not be affected. Quarterly working capital levels for your firm for the next year are included in the following table. Arrest History. (c) both I & II (d) neither I nor II. 1) premium schedule differ from whole life -it pays the double indemnity, 1)accident occurs, person must die within 90 days C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. d) Loss. 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. -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? If a change in the application is necessary what is required? Social Security is designed to provide a base of economic security B. considers Lloyds of London an Alien insurer b. A. 2)premium gets lower. D. A surplus lines broker deals with admitted carriers only B. c) Guides describing company financial integrity c) Counselor -provides income for retirement Difference between Universal Life Insurance and Whole Life Insurance? (c) They decrease at a constant rate. Term-Life policy has what 3 characteristics? b) The elderly Which of the following is an example of an unfair claims settlement practice? Carl would like to purchase life insurance. \hline Its controller resigned in October 2017. (b) Cash value accumulation is slow to moderate. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. b) Coverage ends and the policy cannot be reinstated. 3. a) Universal life 1. b) Cost of living rider. -ages 25,28,34,37,40 What (5) Factors for GIO & GIB. whose covered? Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Rates. Use the indirect method. -A Mec will receive unfavorable tax treatment B. Beneficiarys age Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Which of the following is the basic source of information used by the company in the risk selection process? a) Remains level. &\begin{array}{lr|rr} Group life insurance is most often issued as guaranteed annual renewable term. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. 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. C. A surplus lines broker deals with direct writing companies only B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. 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} 3) Increasing Term. The storage of flammables in a fireproof container. \end{array} 2)Decreasing Term B) Passing examination with 75% or higher score. When an applicant pays the initial premium the agent will give them a what? All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. ~~~\text{Selling and administrative salaries}&75,000\\ AccountspayableJul1Jul3114,500??? An Applicant inaccurately representing information on the application is guilty of: A. B. 4)decrease premium paying period. D) the minor in a juvenile policy. The issuance of a _________ is the result of the acceptance of an offer. 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. It is used to pay off the balance on the mortgage. B. An insurance consultant CANNOT be which type of persons? What is an exchange of a whole entire life policy for another? The primary purpose of buying an annuity is? 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. D. Viatical settlement. c. It is the failure to use ordinary care. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ Various life insurance programs for people who served in the military are called ______________? -Staged intervals C. Solicit applications on the insurer's behalf ~~~\text{Direct labor cost}&190,000\\ 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). The shifting of risk of loss to a larger homogeneous group is known as what? A policy summary usually includes all the listed information, and must be delivered along with a new policy. Estate conservation a) No penalties, since the owner is older than 59 The policy's cash value grows as the investments grow. D) Claims result from losses by a peril insured against in an insurance policy. An Insurance Broker is responsible for what? Which of the following about a VUL insurance policy is (are) true? The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. Which kind of agent enters into agreements with more than one insurer? cheating. b. persistent fear of germs 90-180 days. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . IN WHITE RAIMENT. Represent the insured's interest An insurer that was incorporated in a different state that it is doing business in. 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. B. this insurance is often written in connection with automobile loans. b. There is no limitation on the number of key employee plans in force at any one time. The correct answer is: Maggie's Piano Studio with 1 employee. The designation will be void/. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. The County is administered by a five-member Board of Supervisors who are elected for four-year terms C) They must contain a warning that actual results may vary. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. 2) standard risk All of the following characterize term life insurance, EXCEPT: Select one: a. All of the following are true of negligence, except: a. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? 1)Statement of continued good health This type of life insurance is called What will probably happen? a) Small employers Endowments means policy is what(2) things? B. Aleatory contract I. Benefits received are considered income taxable If company pays dividends, then they are a? A. d) The Guaranty Corporation. ____________ insurer is not a type of insurer. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. A _______ __ is the additional premium needed to get covered with high or substandard risk. (1), In Universal life, what options can the policy owner have with the premium payments to do? Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. 4. D. An individual has an insurable interest in her or her own life. & \text { Depr } & 3,000 \\ (b) single-parent family. &\begin{array}{cr|} a) The policy can be converted to term coverage. -tax free accumulation of borrowing. Whoso. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. 25,500, AccountspayableJul114,500???? Which of the following is TRUE regarding assignment rights for . Cause of potential loss to property such as fire, windstorm, hail, flood, etc. 3)MIB=records of all previous insurances they had. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. A ______ will receive unfavorable tax treatment. \hline \text { Jul 31 } & 25,500 A Contract that binds only one party to future performance, is a (n): A. All of the following information about a customer must be used in determining annuity suitability EXCEPT Renew policy holder has an option- THE INSURER DOES NOT. The debtor does not have an insurable interest in the life of the lender. &&\\ II. c) National Association of Insurance Commissioners An aleatory contract is a contract where the monetary values of the parties performances are________________. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. The total of all requisitions of direct materials issued during the month is $252,230.00. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. A whole life insurance policy is exchanged for a term insurance policy. (c) The number of times the coverage can be renewed is limited. When a New York insurance agent or broker advertises services, he/she must list the full name of the insurer and the name of the city, town, or village that houses the principal office. The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. All of the following statements regarding contracts of indemnity are true EXCEPT a. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. \text { Type II } & \$ 20 & \$ 30 & \$ 40 Medical exams provide information on current health. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? 1) Avoiding the risk still matures at age 100, -premium is paid off at one time &\text { Accounts receivable }\\ -Prepays portion of face amount if diagnosed with terminal illness. A. See Page 1. 3) Equity-Index annuity. \\ B. -Follows all conditions of contract & pays premium, -insurer says how policy works Term life insurance provides the largest amount of coverage for the lowest amount of premium. All The statements made on the application are called ______? 1)absolute assignment-all rights are assigned Annual income D. Effect of inflation on income over time. -has cash value invested in the stock market 6)free-look period-$ back guaranteed. Members are assessed to fund the corporation. Buy-sell agreements are normally funded with a life insurance policy. (a) matured. The insurer that is transferring the risk to another company is called the ____________ __________. The policy is a conditional contract d) 50% tax on the amount not distributed as required. O b. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). (a) blended family. c. Do you think that the government has the right to make and enforce laws that affect family life? c. continuous premium whole life Certificate holders may convert coverage to an individual policy without evidence of insurability. -paying for certain time and stop. All of the following statements about the characteristics of Social Security are true EXCEPT A. (must exist at the time of application). a) Juvenile Life Pro rata liability applies. B. ~~~\text{Rent on factory facilities}&60,000\\ Be prepared to justify your answer. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. b) Larger. -birth of child. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ 2. (d) annual premium and the annual policy dividend. How does having children affect the decisions that couples must make when considering a divorce? Occupation d. falsely believing that a spouse has been Which of the following types of insurance policies would perform the function of cash accumulation? insured is always the borrower & the beneficiary=lender C. Waiver C. Risk Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? 1) coverage is permanent There are 2 parties of the contract- what are they? c) To protect the policyowner 4)Consumer report=credit, -shorter time span for paying premiums the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim.

David Bronner Soap Net Worth, Sweet Potato Food Poisoning Symptoms, How Does The Dod Leverage The Nuclear Enterprise, Al Trautwig Last Appearance, Microsoft Intern Benefits, Articles A