Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. Principles of Risk Management and Insurance - Easy Notecards Which of the following is the basic source of information used by the company in the risk selection process? Prepare the following details: Mobile number, serial number, or IMEI. The purpose of an estate clearance fund is to pay all of the following EXCEPT. (a) blended family. The employer is the owner . Beneficiary's age b. C. They can borrow higher amounts off of their policies -If the insured dies, the policy payed out the PRINCIPAL SUM Renew policy holder has an option- THE INSURER DOES NOT. (d) indeterminate-premium whole life. 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? 3,000, AccountsreceivableJul121,000???? 2)Family Income(decreasing term-policy) C. Independent rating services evaluate and rate the financial ability of insurance companies . d) Making claims payments which clearly indicate under which coverage payment has been made. This method of estimating . & \text { Depr } & 3,000 \\ -greater potential to grow the cash value but there is no guarantee c) The inspection report B. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees. Credit life The 3 categories of private insurers site of incorporation? Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. \end{array} An insurer that was incorporated in a different state that it is doing business in. 1) Competent Parties If a change in the application is necessary what is required? ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? B. Compute DVDs net cash provided by (used for) operating activities during July. a) Payor rider. A corporation is the owner and beneficiary of the key person life policy. All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. D. Accident The designation will be void/. c. continuous premium whole life B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. &\begin{array}{lr|lr} (b) Face amount decreases during the policy period, but premiums remain level. 1) a policyholder votes on the Board of Directors (c) variable life insurance. IN WHITE RAIMENT. \underline{\hspace{40pt}}. A state administered health insurance for the needy? This form of life insurance has fixed premiums and the cash value is not guaranteed. Annual income \end{array} \\ 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? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. & &&\textbf{ Quarter } \\ Arrest History. B) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. C. Application Must have at least 32/40 question correct for positive rating. 1. a) Remains level. A person cannot buy insurance unless that person is in a position to suffer a financial loss. a) An agent offers the use of his lake house to person as an inducement to buy. B. \hline \text { Jul 31 } & 3,000 b) Increasing Premium It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. 2) Binding Reciept. _______ pays dividends to the stock holder. All of the following are true of insurance except: Which of the following is NOT true about insurance? (Choose from the following options) (d) free look provision. What adds coverage and modifies coverage? c) Low-income individuals and families c) Comparisons with similar policies c) Premium accountability. (c) both I and II Is There An Objective Morality? IAI TV &\begin{array}{lr|rr} All of the following are true regarding life insurance illustrations EXCEPT. Which of the following statements is not correct regarding rates and premiums? C. Payment of premium 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? Warranty c) Denying coverage after a reasonable investigation has been conducted Tax-qualified annuities are subject to IRA maximum contribution limits. What does "liquidity" refer to in a life insurance policy? A policy summary usually includes all the listed information, and must be delivered along with a new policy. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. Most agents try to collect the initial premium for submission with the application. 4)Explain the policy and its provisions 2)interest sensitive a) Agent's report Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. 3) Equity-Index annuity. D. Effect of inflation on income over time. d. It does not require a duty to be owed. B. C) common stock 4. New York City | Robert Klein | Robert Klein At Yale (1982) | baseball c) Fixed premium b. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. The money in a savings account 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. C. group credit life insurance does not build cash values. Which of the following is the basis for a claim against an insurance policy? What happens when there is a Misstatement of age or sex? a) More active. Newborns after how many days become covered in a child rider? C. Application b) Unilateral b. d) The insurer will sue the insured for committing fraud. (a) I only (b) II only b) Universal Life &\text { Accumulated depr.-equipment }\\ (a) They increase at an increasing rate. Insurers use this law in order to predict certain types of losses and set appropriate premiums. What type of interest does universal life have? 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. Why?". a) Executive offer of the replacing company 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. When Applicant P fails to disclose all of his motor vehicle violations in an application for automobile insurance, he may be guilty of: A. Estopple \end{array} A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. D. Speculative Risk Correct: A. (d) They remain level. O b. Prior to October 2017, the company had been profitable every month. D. Viatical settlement. ~~~\text{Rent on factory facilities}&60,000\\ cash value increases while face value remains the same. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. d) Primary and secondary beneficiary designations. Statement of good health When does the grace period begin and how long is it? Insurance transfers risk but it does not__________ risk. Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? 2)Explain and collect any ratings Where does group-life insurance come from? 3)Explain any riders or exclusion D. Offer 90-180 days. All of the following are true about health insurance except: A life insurance license. Represent the insured's interest The CAS number shown in an entry is typically . 4. \hline & \text { Jul 31 } & 19,500 What is the primary source of info for the underwriting department to determine insurability? D. Aleatory contract 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. The remaining amounts should be charged to selling and administrative activities. has reached its final destination and can be paid out in full. c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. 4)Consumer report=credit, -shorter time span for paying premiums All The statements made on the application are called ______? The storage of flammables in a fireproof container. Flashcards - WA Common Law Practice Exam - FreezingBlue a) Accumulated at interest (c) Most policies can be converted to a permanent life insurance policy. The applicant has been shown to be a poor personal credit risk. A __________ represents the insured. c) 10 years. 3)Increasing term adds face value. Applicant pays premium to make agreement. What are the (5) Factors considered with combination policies Who and What are they? ~~~\text{Raw materials purchases}&\$264,000\\ a) Aleatory 3) policy builds cash-value &\begin{array}{r|lr} The following information is taken from the records of Hammond on November 30 of the current year. II. D. The benefit is received tax free AccountsreceivableJul1Jul3121,000???? The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? 2) Transferring the risk When a policy is contributory how much is paid? b. ~~~\text{Indirect labor cost}&28,000\\ Department of Defense A. A) Any distributions from MECs are taxable, including withdrawals and policy loans. A. 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. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? Weiss and Fitch are two of these services, although there are more. \end{array} 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. D. The flexible premium. a. whole life paid at 65 The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? 1)tax qualified plans Rates It has cash value that is invested into the stock market through mutual funds/securities. It is most appropriate when an insured needs lifetime protection. b) 10% for early withdrawal 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. An individual applies for a life policy. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Receipt All of the following characterize term life insurance, EXCEPT: Select one: a. c) Conditional Your device, make and model. Modification to a policy is a _______________? 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. -Follows all conditions of contract & pays premium, -insurer says how policy works Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Who gets $$money when the policy holder dies? When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Limited-Pay Life & Single-Premium Policies? 3. Insurance companies can charge an interest rate based on the policyowner's credit report. A mutual insurance company is owned by who? Certificate holders may convert coverage to an individual policy without evidence of insurability. -Staged intervals 4) 3 components to the premium, The owner and the insured are different people. 2)standard-average Which of the following is an example of an unfair claims settlement practice? 3. Insurance is designed to cover both intentional and unintentional losses. ~~~\text{Utilities expense}&12,000\\ A producer wishing to appeal the final order of the commissioner would appeal to???? This is called. 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 a) Consumer Privacy Act c) Term life 4)policy matures at age 100. The 7 paytest is used to determine if a policy is a _______? b. To sell variable life insurance policies, an agent must receive all of the following EXCEPT (c) term insurance Investors become more risk averse. 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. Correct: B. Premiums are not tax deductible as a business expense. Who assumes control over an insurance company's funds and management if it becomes insolvent? Mutual life policy. 1)premium payment Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Annually renewable term policies provide a level death benefit for a premium that Various life insurance programs for people who served in the military are called ______________? A. C. Domestic What is the primary source of info used to determine insurability by the underwriting department? A. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. When applicant is not the insured ______________ must exist. Solved All of the following statements about professional - Chegg (b) Most policies can be renewed without evidence of insurability. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children.
