A debtor has insurable interest in the life of a lender c) 15% for early withdrawal IRS classification of a policy that is overfunded? What type of interest does universal life have? 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. Level-increasing face value. D. Department of Treasury - 20 pay life-premiums paid for 20 years and paid up at 65 2)Foreign Insurer 2)no cash-value The following are all true regarding risk management, except: A. Explain your answer. The cash value available to the policyowner \text{Sales revenue}&&\$780,000\\ 2)Variable annuity Chapter 1- General Insurance Flashcards | Quizlet c) National Association of Insurance Commissioners The issuance of a _________ is the result of the acceptance of an offer. (c) face amount of the policy and the legal reserve. d) 50% tax on the amount not distributed as required. -sex doesn't determine eligibility. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. b) Unilateral ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} What are the (5) Factors considered with combination policies Who and What are they? Our records show that more than one device is associated with this ____________ is a statement that is true to the best of the persons knowledge that is making the statement. exclusions: when the accident occurs within an illness,disease, or mental infirmity. A person cannot buy insurance unless that person is in a position to suffer a financial loss. When an agent collects the initial premium from the applicant, the agent should issue the applicant a. d) Living need rider. -then picks a contract. C. Department of State 1)Whole Life A contract between insurer and policy holder. The insurer that is transferring the risk to another company is called the ____________ __________. B. -has cash value invested in the stock market An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. & &&\textbf{ Quarter } \\ How do premiums for yearly renewable term insurance change as an insured gets older? The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. \hline \text { Jul 1 } & \begin{array}{r} The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. It is the specific cause of loss. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. a) More active. C. Waiver a) A medical examination A. There is no limitation on the number of key employee plans in force at any one time B. (a) matured. An underwriter will consider each of the following factors when evaluating a risk, except: A. Pure Risk. -assignor=assignee When the application is submitted without the premium its considered an invitation for the insurer to make an offer. (c) face amount of the policy and the legal reserve. -the applicant must always initial the change (4), 1)monthly The failure to disclose known facts is what? \hline & \text { Jul 31 } & 58,000 Participating policy. D. Breach of warranty a) Payor rider. A. 3) Increasing Term. 1)temporary Free Chapter 1 - Tests.com (2), 1)HIPPA a) Accumulated at interest (c) both I & II (d) neither I or II. Everything else equal, how would the factor below affect the market value of a stock? Health insurance decreases your healthcare costs. B. b) The agent's report 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. Which of the following is the basic source of information used by the company in the risk selection process? C) They must contain a warning that actual results may vary. D. Concealment The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. 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? Whats the "take it or leave it contract"? B. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? D. The flexible premium. C. Premiums are determined by age sex and occupation of each individuals certificate holder. For this amount of production, total factory overhead is estimated to be $396,000.00. 3)2 death benefit option Is claim still paid if there is a misstatement of age or sex? All of the following statements concerning coinsurance are true, EXCEPT . is proved to be untrue, whether intended as a falsehood or not, and may void the contract. L4. Life Insurance Policy Provisions Options and Riders -Can't lose value O b. Buy-sell agreements are normally funded with a life insurance policy. c. thoughts of harming a neighbor See Answer. (a) I only (b) II only All of the following are true of negligence, except: - AZanswer When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. \text { Type I } & \$ 30 & \$ 35 & - \\ Term life insurance provides the largest amount of coverage for the lowest amount of premium. &\text { Accumulated depr.-equipment }\\ b) A producer who handles insurer funds in a trust capacity. A person who negotiates insurance contracts on behalf of an insured. 3)increase the length of coverage 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? (a) The insurance provides protection for a temporary period of time. 1) cash value earns interest c) Copy of the original application when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. A. (c) variable life insurance. C. Payment of premium Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. C. The policy is an aleatory contract Various life insurance programs for people who served in the military are called ______________? 2)administered charge \text { Type II } & \$ 20 & \$ 30 & \$ 40 Pertaining to insurance, what is the definition of a fiduciary responsibility? \hline & \text { Jul 31 } & 19,500 Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. In order for the contract or policy to be valid or legal? Which method makes the most sense for her to employ? Signed waiver of premium All of the following are business uses of life insurance EXCEPT D. Term life. All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. DONT PICK IT!!!!!! II. Does T-Mobile Insurance Cover Water Damage? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. By William Lb Qtjetjx, Author of . Annual income 1) preferred risk Insurance is designed to provide protection against which of the following? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ Permanent Insurance have 3 words in common, what are they? An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? (d) endowment insurance, Rachel needs permanent life insurance. ~~~\text{Raw materials purchases}&\$264,000\\ Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. Example: company that is incorporated in NJ and sells in NJ. 3)Family Policy(Limited but all fam members paid) C. The insurer is always required to pay the . Life Insurance Flashcards - Cram.com \hline \text { Jul 1 } & 22,000 \\ ? Which of the following is NOT an allowable 1035 exchange? \hline & \text { Jul 1 } & \begin{array}{r} A) They must be given to all Life insurance applicants. D. Gender. C. State Education Waiver All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. 1.1K 64K views 1 year ago In this video I show you how to one shot Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? (c) PV of the family's share of a deceased breadwinner's future earnings. Candidate List of substances of very high concern for Authorisation C. Application C. Tax Status (b) Most policies can be renewed without evidence of insurability. Cash values are available in whole life policies. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. c) Conditional B. The applicant accepts the invitation by paying the ___________. -Take it or leave it contract InventoryJul1Jul3122,000???? Group life insurance is most often issued as guaranteed annual renewable term. C. Premiums are tax deductible by the key employee D. Aleatory contract C. Domestic Flashcards - PSI online exam Life Insurance - FreezingBlue A policy summary usually includes all the listed information, and must be delivered along with a new policy. may not be altered by an agent and must clearly state that it is not part of the contract. There is a minimum guaranteed interest rate on all sub-accounts. (c) human life value method Chapter 11 - Life Insurance Flashcards | Quizlet D. Offer Hammond Corporation manufactures televisions. 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 statement regarding credit life insurance are true, except: A. credit life insurance may be written on either and individual or group basis. Tom and Nancy Boyle provide financial support for their two children. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Department of Defense \hline B. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. Which of the families below is likely to have the least need for a large life insurance policy? 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 . Members are assessed to fund the corporation. When an applicant pays the initial premium the agent will give them a what? Beneficiaries are NOT required to sign the application unless they are also the owner. 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. 1. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. 2. . 3)riders & exclusions The policyowner can add to a policy's cash value at any time subject to policy guidelines. b) 10% for early withdrawal C. Waiver of Estoppel (d) annual premium and the annual policy dividend. Costs of training a replacement Most insurance policies contain a specific limit that an insurer will pay for a single claim. Chapter 11 - Life Insurance. 4)decrease premium paying period. (3), WHat is the difference between universal and whole life policies? a) Remains level. A. Foregin B. 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). B. 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? Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. 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 Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} _______ pays dividends to the stock holder. c) Comparisons with similar policies ADD( Accidental death and dismemberment??? A. Foreign. d) Fair Credit Reporting Act. 5th Sunday after Epiphany Saint Barnabas | By Saint Barnabas Episcopal The issuance of a binder is the result of the ___________________ of an offer. Terms that apply to the insurer not the applicant. Insurance is designed to cover both intentional and unintentional losses. When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? ? Nonparticipating policy. The face amount decreases as the amount owed on the mortgage decreases. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. D) Obtaining a bachelor's degree. To sell variable life insurance policies, an agent must receive all of the following EXCEPT (a) present value of future benefits and the present value of future premiums. Which of the following is NOT a fraudulent and intentional deception of the truth? c) Accelerated benefit rider. The employer is the owner . (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. (2), The current market will influence the cash value 3)low premiums. A) loss reserves 2. Chapter 14/1: Group Health Insurance Flashcards | Quizlet - Limited Pay Life (a) capital retention approach -If the insured dies, the policy payed out the PRINCIPAL SUM B. 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. (D The employer is the owner, payor and beneficiary of the policy. Investors become more risk averse. A. 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. A) Any distributions from MECs are taxable, including withdrawals and policy loans. -receiving dividends(when declared) 1) insured gets higher amount d) Graded Premium. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? 14,500 \\ \hline \text { Jul 1 } & 5,500 &&\\ c) Term life Their premiums are lower \hline \text { Jul 31 } & 3,000 Estate Creation B. 2)collateral assignment-some or only one right assigned. Fraud Which of the following is true regarding the beneficiary designation of the former spouse. Which of the following is a financial rating service?