all of the following are true of insurance except

\hline \text { Jul 1 } & \begin{array}{r} All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. Use the indirect method. D. Funding against general company financial loss B. IRS has no jurisdiction Conditional contract means the policy holder does what? (receive dividends & the right to vote). The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . ch2 Flashcards | Quizlet A mutual insurance company does not have what? ____________ insurer is not a type of insurer. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ An individual applies for a life policy. Statements in the application that are guaranteed true but later found to be false may result in what? -car accident not in conjunction with an illness -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded Last year, the couple got divorced. 2)face amount is set Liquidity in life insurance refers to availability of cash to the insured through cash values. ~~~\text{Indirect labor cost}&28,000\\ &\text { Inventory }\\ b) Conditional receipt In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Insurance is considered a transfer of risk. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. (c) both I & II (d) neither I nor II. Warranty D. The benefit is received tax free (a) universal life insurance. 1.1K 64K views 1 year ago In this video I show you how to one shot The Boyle family can be described as a Your device, make and model. O d. (2), The current market will influence the cash value Jul3125,500\begin{aligned} Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. A policy summary usually includes all the listed information, and must be delivered along with a new policy. b) Failure to promptly settle a claim when liability has been clearly established Estimated direct labor costs for next year are$440,000.00. Prepare the following details: Mobile number, serial number, or IMEI. B) The parent is responsible for the premium. (d) endowment insurance, Rachel needs permanent life insurance. ~~~\text{Advertising expense}&90,000\\ B. this insurance is often written in connection with automobile loans. 4. A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. (c) PV of the family's share of a deceased breadwinner's future earnings. (c) They decrease at a constant rate. Predicted needs of the family after the insured's death are used in the needs approach. C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ 2. Which of the following is usually true of a participating life insurance policy? d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. c) Variable Premium Annual income 2)standard-average 2)APS=medical records C. Domestic a) An agent offers the use of his lake house to person as an inducement to buy. d) Older. 1)premium payment -marriage 2)collateral assignment-some or only one right assigned. B. Buy-Sell Agreements pay in the event of a medical emergency -Voting. 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) Family Maintenance(breadwinner) d) Blackout approach. \end{array} (d) sandwiched family. B. B. Correct: B. How much life insurance should Sam advise . A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. 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 Insurance is designed to cover both intentional and unintentional losses. (c) expired. & \text{ ???? } 2) form of interest sensitive life insurance(current market conditions influence the cash value) 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. To sell variable life insurance policies, an agent must receive all of the following EXCEPT The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. d) Military personnel. -assignor=assignee It does not include breach of contract. 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. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. Pertaining to insurance, what is the definition of a fiduciary responsibility? D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. Rates. 1)Domestic Insurer 3) policy builds cash-value \end{array} Chapter 11 - Life Insurance. Quarterly working capital levels for your firm for the next year are included in the following table. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. b) Promptly forwarding premiums to the insurance company The policy is a contract of adhesion 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. Which of the following statements about limited-payment life insurance is true? Upon policy delivery, the producer may be required to obtain any of the following EXCEPT ___________ is the persons whose death triggers payment. Joe, Larry, and Curly own a small business. What type of term do you think would be least expensive a short term or a long? (c) conversion provision c) Coverage ends but the policy can be reinstated at any time. 2) profits are returned as dividends 1) premium schedule differ from whole life \hline \text { Jul 1 } & 22,000 \\ 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. What characteristic must an annuity have if it is used to accumulate funds in an IRA? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. Consumer report Premiums are not tax deductible as a business expense. - Limited Pay Life 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. 3) Increasing Term. a) More active. 1) the premium amount D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers \hline \text { Jul 31 } & 17,000 c) Low-income individuals and families ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ B) the applicant. Explain your answer. The failure to disclose known facts is what? D. Reduction is a method of managing risk. cheating. D. Solicit applications on insurer's behalf & \text{ ???? } All of the other statements are true. a) Accumulated at interest A producer wishing to appeal the final order of the commissioner would appeal to???? What does it mean when a policy is limited pay life? An insurer that is incorporated in the same state that they are doing business in is a_____________.? &\text { Rental Class }\\ WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. Life insurance proceeds 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. a) A medical examination (c) human life value method Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Predicted needs of the family after the insured's death With a little work, an unused office area could be converted to a rental room. &\begin{array}{lccc} The companys president is concerned about the accuracy of the income statement. An Applicant inaccurately representing information on the application is guilty of: A. All of the following statements about term insurance are true EXCEPT. c. continuous premium whole life Since they may receive a dividend (not guaranteed), such policies are known as participating policies. a) Offering additional coverage to clients c) Fixed premium Who is responsible for making sure the application is completed properly and all necessary info is obtained? -Follows all conditions of contract & pays premium, -insurer says how policy works An Insurance Broker is responsible for what? 1) mentally incompetent persons 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. A. -kids till 21 d) Contingent. \end{array} D) the minor in a juvenile policy. Agents and producers must place business through an insurer with the lowest rated All of the following are methods of payment? Their premiums are lower It is the specific cause of 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. D. The benefit is received tax free. A Contract that binds only one party to future performance, is a (n): A. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. Appoint a solicitor as his or her representative 3)2 Death benefits-(level/increasing) Life expectancy has increased in the U.S. over the last century. e. The total of costs recorded on all sales invoices for the month is$654,052.00. d. 3)Increasing term adds face value. Rating codes are assigned to show financial strength or weakness of each company rated Which kind of agent enters into agreements with more than one insurer? \end{array} 1) Conditional Reciept The designation will be void/. B. ~~~\text{Selling and administrative salaries}&75,000\\ 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. A policy summary (Choose from the following options) States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. All of the following are true of key person insurance EXCEPT 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. 1) All requirements are met &\text { Accounts receivable }\\ All of the following statements are true of liability insurance, EXCEPT A. -paying for certain time and stop. C) They must contain a warning that actual results may vary. A. What insurance concept is associated with the names Weiss and Fitch? Which risk management type is shifting the risk of loss to a larger homogeneous group? &\begin{array}{r|lr} Level-increasing face value. Six Reasons the Loss is Excluded - MyNewMarkets.com After examining other manufacturing cost data, you have acquired additional information as follows. (c) face amount of the policy and the legal reserve. (b) variable life insurance Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Correct: B. 4)Explain the policy and its provisions The money in a savings account C. Tax Status 3)Explain any riders or exclusion A. \hline \text { Jul 1 } & 5,500 &&\\ D. A surplus lines broker deals with admitted carriers only d. The total of all cost sheets completed during the month is $628,880.00. The person who receives the benefit when insured dies. (3), WHat is the difference between universal and whole life policies? 3)semi-annual 1. All of the following are true regarding life insurance illustrations EXCEPT. Which model is the better fit for the data? 3)certified public accountants, Is insurance that is provided by the Federal or State government c) Accelerated benefit rider. On DUE DATE. c) Term life \text { Type I } & \$ 30 & \$ 35 & - \\ b. Insurance is designed to provide protection against which of the following? In order for the contract or policy to be valid or legal? b) Cost of living rider. Healthcare in the United States - Wikipedia Life insurance policy premium charged the policyowner that can be less than that guaranteed in the contract, premium increases gradually during the first few years and then levels off, All of the following statements are true regarding mortgage protection insurance EXCEPT. There is a minimum guaranteed interest rate on all sub-accounts. Which of the following statements about a life insurance policy is (are) true? ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Policyholders b) Hazard 2)explain any ratings Costs of training a replacement Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. \textbf{EMPIRE COMPANY}\\ Study with Quizlet and memorize flashcards containing terms like Which of the following would not appear in the asset section of an insurance company's balance sheet? All of the following are true about health insurance except: 2. paperspast.natlib.govt.nz Is claim still paid if there is a misstatement of age or sex? 3)substandard risk. Past-due interest on a policy loan is added to the total debt. (b) The face amount of the policy is paid if the insured lives to age 65. 1)policy owner can increase/decrease/ or skip premium payments The cost of a living rider is calculated by what? D. Department of Treasury If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. B. Misrepresentation has reached its final destination and can be paid out in full. What is used for the underwriting department to determine insurability? Buy-sell agreements are normally funded with a life insurance policy. Alex, age 26, purchased a 20- payment whole life insurance policy. All The statements made on the application are called ______? All of the following statements about the settlement of a claim are true EXCEPT. To sell variable insurance what must you have? cash value increases while face value remains the same. Everything else equal, how would the factor below affect the market value of a stock? O b. 2)attorneys c) Guides describing company financial integrity C. Insured's annual expenses 2)Decreasing Term 3)2 death benefit option 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. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? C. Buy-Sell agreements are normally funded with a life insurance policy Round Trees management makes a forecast of the demand by rental class for each night in the future. (c) two-income earner family. a) A retail clerk. Accidental Death Benefit A person who negotiates insurance contracts on behalf of an insured. A. (a) blended family. II. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. Receipt (a) I only D. Term life. B. Twisting a) Accepted accounting principal. How has the Aswan High Dam affected the lives of Egyptians? See Answer. ~~~\text{Rent on factory facilities}&60,000\\ The 7 paytest is used to determine if a policy is a _______? b) 10% for early withdrawal 4. c) A person who handles assets or money belonging to others. [Solved] All of the following are true of insurance EXCEPT It transfers (1), In Universal life, what options can the policy owner have with the premium payments to do? 3. Daycare is considered to be among these expenses. \end{array} \\ (d) annual premium and the annual policy dividend. _________ is a determination that a statement made as a warranty, or true. Height Weight and Health conditions. \text{Sales revenue}&&\$780,000\\ 3. B. 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? Chapter 11 - Life Insurance Flashcards | Quizlet She has limited income and significant life insurance needs. ________________ are the person who receives benefits payable upon death. All renewable term policies are accepted without__________ and only with_____ collected. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? and what two kinds? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Government Relations: New Challenges and the Ongoing Erosion of Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. The cash value available to the policyowner If there Is a risk of financial loss then there is a what? _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Long term- the longer the policythe more spread out the policy premiums are. Limited-Pay Life & Single-Premium Policies? (a) I only (b) II only 6)free-look period-$ back guaranteed. Any gain in the policy's cash value is . When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? It is used to pay off the balance on the mortgage. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. A) the agent. 4) 3 components to the premium, The owner and the insured are different people. &\begin{array}{l|lr} Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. C. Premiums are determined by age sex and occupation of each individuals certificate holder. C. A surplus lines broker deals with direct writing companies only A debtor has insurable interest in the life of a lender Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. Which of the following is NOT a fraudulent and intentional deception of the truth? b) Adjustable life Principles of Risk Management and Insurance - Easy Notecards Permanent Insurance have 3 words in common, what are they?

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all of the following are true of insurance except