Members are assessed to fund the corporation. 1. (b) Prepare a correct income statement for October 2017. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds What type of term do you think would be least expensive a short term or a long? This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. 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. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Nonparticipating policy. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. If there Is a risk of financial loss then there is a what? B. (a) I only (b) II only In this case, the applicant will most likely need to fill out a Statement of Good Health. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. 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. 3. It does not include breach of contract. 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? B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. B. 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. A FINRA registration. What is a statement in the application guaranteed true in all respects? Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. c) Guides describing company financial integrity Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. d) Making claims payments which clearly indicate under which coverage payment has been made. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. a. mentally counting backward from 1,0001,0001,000 Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . \end{array} C. Whole life Which of the following about a VUL insurance policy is (are) true? Which kind of agent enters into agreements with more than one insurer? The policy does not go into effect until the premium has been collected. Prior to October 2017, the company had been profitable every month. (c) two-income earner family. Beneficiary's age Which of the following is a physical hazard? B. B. Liquidity in life insurance refers to availability of cash to the insured through cash values. Who would be eligible to obtain SGLI? D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. Coverage is available in $50,000 increments up to the maximum of $400,000. C. Department of State A ______ will receive unfavorable tax treatment. b) The elderly -Voting. 3)Alien Insurer. a) Payor rider. \hline & \text { Jul 1 } & \begin{array}{r} \hline \text { Jul 31 } & 17,000 Get more out of your subscription* Access to over 100 million course-specific study resources This method of estimating . A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. 2. B. All of the following statements are TRUE concerning Debtor Groups EXCEPT D. Offer A surplus lines broker accepts business only from non- resident agents Only one party is giving a legally enforceable promise- A one-sided contract is 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. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. What is the purpose of a suicide provision within a life insurance policy? Rates. a) A medical examination "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 2)attorneys Instructions Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? (a) limited-payment whole life insurance Agent Sam is using the human life value approach to assess Mary's life insurance needs. What is the primary source of info used to determine insurability by the underwriting department? Misrepresentation, Concealment and Deceit are all examples of what? (a) I only (b) II only For example, a claim will be paid only is there has been a covered loss. D. Delivery receipt. Insurance is designed to cover both intentional and unintentional losses. Appoint a solicitor as his or her representative Which of the following is usually true of a participating life insurance policy? c) Copy of the original application ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ 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. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. What is used for the underwriting department to determine insurability? Adverse selection is well controlled. b. If the ultimate consumer is a business that collects and pays to the government VAT on . Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. An individual applies for a life policy. (receive dividends & the right to vote). c) Needs approach 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. A. Which type of life insurance makes sense for someone in this situation? What are the permanent working capital needs of your company? Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. 1) premium schedule differ from whole life Most agents try to collect the initial premium for submission with the application. Life expectancy has increased in the U.S. over the last century. All of the following statements about the characteristics of Social Security are true EXCEPT A. 90-180 days. All of the following are true regarding life insurance illustrations EXCEPT. In this particular instance the applicant did not commit intentional fraud. Correct: A Insurance . C. A surplus lines broker deals with direct writing companies only Is interest always gained in Universal Life Policy? 1) All requirements are met Term. What are (4) characteristics of permanent insurance? The following are all true regarding risk management, except: A. Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. 1) Competent Parties -birth of child. 3)premium is collected Predicted needs of the family after the insured's death Prepare the following details: Mobile number, serial number, or IMEI. The designation will be void/. A. Insurance is not designed to cover _____________ losses. II. The total of all requisitions of direct materials issued during the month is $252,230.00. b. All of the following are common characteristics of this coverage EXCEPT A false statement in the application for insurance is_____________. a) The policy can be converted to term coverage. &\begin{array}{lr|lr} The premium is level and guaranteed not to increase. D) the minor in a juvenile policy. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. 1) Conditional Reciept Represent the insured's interest -policy holder adheres to it A life insurance policy is exchanged for an annuity. On DUE DATE. What adds coverage and modifies coverage? Weiss and Fitch are two of these services, although there are more. b) The policy will not be affected. What constitutes the acceptance of an offer? Predicted needs of the family after the insured's death are used in the needs approach. 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. Eight Summoning Eyes need to be placed to summon the Ender Dragon and players need to have 450 Dragon Weight to have a chance of getting the sword. b) Human life value approach 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. good health Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. 4)underwriting is complete Predicted needs of the family after the insured's death B. a) To limit the insurer's liability after the 2 year waiting period If you don't have health insurance, you pay all costs for healthcare and medical emergencies. It requires evidence of insurability for renewal. James purchased yearly renewable term insurance. 1)policy owner can increase/decrease/ or skip premium payments A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. Who represents the insured when dealing with insurance companies? 2)Decreasing Term 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. 1) Family Maintenance(breadwinner) Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer Breach of warranty Warranty They become permanently disabled C. A surplus lines broker accepts business only from non- resident agents 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. Which of the following is TRUE regarding assignment rights for . D. They can decide when to pay their monthly premiums. 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. A) An indeterminate premium reduction policy is a policy in which the premium is guaranteed for an initial period, then the insurer can charge up to a maximum premium charge that is specified in the policy. There is no limitation on the number of key employee plans in force at any one time. Cash values are available in whole life policies. Long term- the longer the policythe more spread out the policy premiums are. 2. 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} B. a) Withdrawals are not taxable. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. Payor benefit/Clause is always a _________. What does "liquidity" refer to in a life insurance policy? 4)Consumer report=credit, -shorter time span for paying premiums Estate conservation Accelerated Living Benefit/Death Benefit is what type of rider? Correct: A. \text { Type I } & \$ 30 & \$ 35 & - \\ What are two reasons that people deposit money in banks? 1) preferred-low All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. All of the following statements about universal life insurance are true EXCEPT A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. 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 This is called. C. it is often experience-rated, with premrums based on expected losses. Which of the following statements about limited-payment life insurance is true? Compensating executives Alex, age 26, purchased a 20- payment whole life insurance policy. 4. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. 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. Modification to a policy is a _______________? A conditional or binding receipt is given when an applicant does what? A. C. Hazards The applicant accepts the invitation by paying the ___________. 4. Funding against financial loss caused by the death of a key employee b) Adjustable life 3)according to the source of annuity income A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. 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. A. Who gets $$money when the policy holder dies? D. An individual has an insurable interest in her or her own life. Is claim still paid if there is a misstatement of age or sex? \end{aligned} A. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. When a policy is non-contributory how much is paid? (D The employer is the owner, payor and beneficiary of the policy. c) Policy loans are taxable distributions. & \text{ ???? } (Hint: Take a look at the Theory of Reasoned Action.). The insurer that is transferring the risk to another company is called the ____________ __________. &\text { Inventory }\\ How has the Aswan High Dam affected the lives of Egyptians? \hline \text { Jul 31 } & 3,000 Whats the "take it or leave it contract"? (d) endowment insurance, Rachel needs permanent life insurance. C. Payment of premium 1)Level Life insurance proceeds & \text{ ???? } The policy is issued for one year and may be renewed annually with evidence of insurability. &\text { Retained Earnings }\\ 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? An insured owns a life insurance policy. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Investors become more risk averse. 4)policy matures at age 100. 2. a) Executive offer of the replacing company 1)physical exam Height Weight and Health conditions. ? 2)people under the influence of drugs or alcohol 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. Department of Defense Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. 2) standard risk b) An agent offers to share his commission with a policyholder. A. All The statements made on the application are called ______? C. Insured's annual expenses What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? 3)low premiums. 14,500 \\ Explain your answer. Various life insurance programs for people who served in the military are called ______________? A. 1) insured gets higher amount c) A person who handles assets or money belonging to others. (b) tax-free exchange provision Cause of potential loss to property such as fire, windstorm, hail, flood, etc. (c) They decrease at a constant rate. 1) mentally incompetent persons -car accident not in conjunction with an illness Correct: C. Consideration. . Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. a) Accumulated at interest The 3 categories of private insurers site of incorporation? 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. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Which is generally true regarding insureds who have been classified as preferred risks? Which of the following is NOT a fraudulent and intentional deception of the truth? If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? Question: 55. Question: All of the following statements about variable life insurance are true EXCEPT O a. B) The plan is funded by permanent insurance only. (economy). Correct: B. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. b) Increasing Premium -has cash value invested in the stock market ________________ are the person who receives benefits payable upon death. 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. A. The money in a savings account Past-due interest on a policy loan is added to the total debt. c) National Association of Insurance Commissioners 3)2 death benefit option c) Denying coverage after a reasonable investigation has been conducted The corporation also helps detect and prevent insurer impairments. c) Comparisons with similar policies Everything else equal, how would the factor below affect the market value of a stock? 3)they provide insurance to members. A. D. group credit insurance must have a suicide clause . InventoryJul1Jul3122,000???? B. -But pays you interest, 1)Fixed annuity (1), In Universal life, what options can the policy owner have with the premium payments to do? Business partners have an insurable interest in each other \end{aligned} (d) annual premium and the annual policy dividend. 2)no cash-value Correct: D. Concealment. He would also like to invest in a mutual fund. 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? b. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? (b) The face amount of the policy is paid if the insured lives to age 65. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? The 7 paytest is used to determine if a policy is a _______? (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. Pro rata liability applies. Compute DVDs net cash provided by (used for) operating activities during July.