Life Insurance Basics Flashcards | Quizlet Insurers use this law in order to predict certain types of losses and set appropriate premiums. Difference between Universal Life Insurance and Whole Life Insurance? Benefits received are considered income taxable \end{array} 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. 1)increase cash value 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 Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? -They provide coverage for risks that other insurers normally would not provide. D. Effect of inflation on income over time. (d) They remain level. Who is not a party to the contract and receives the benefits when the insured dies? A peril 2)explain any ratings Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. -The insurance dept. 3) type of plan they applied for. 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. &\begin{array}{lr|rr} (1), In Universal life, what options can the policy owner have with the premium payments to do? ~~~\text{Advertising expense}&90,000\\ a) A retail clerk. Insurance is considered a transfer of risk. A person who negotiates insurance contracts on behalf of an insured. a) Offering additional coverage to clients c) Variable Premium Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. A __________ represents the insured. b) Coverage ends and the policy cannot be reinstated. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. The storage of flammables in a fireproof container. It is a type of tort. Which of the following documents must be provided to the policyowner or applicant during policy replacement? The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 4)explain policy & provisions b) An agent offers to share his commission with a policyholder. Solved All of the following statements about variable life - Chegg ________________ are the person who receives benefits payable upon death. B. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. The 3 categories of private insurers site of incorporation? d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. 4)settlement options, 1)stand alone policy when the applicant/owner is not the insured-3rd party D. Speculative Risk 3)Family Policy(Limited but all fam members paid) 1) cash value earns interest Beneficiary's age is not a suitability factor. (a) renewal provision Their premiums are lower A. Life insurance prodceeds (D The employer is the owner, payor and beneficiary of the policy. D. Financial Experience. Group life insurance is most often issued as guaranteed annual renewable term. A whole life insurance policy is exchanged for a term insurance policy. . 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. (Medic Information Bureau)? An annuity is exchanged for another annuity. Renew policy holder has an option- THE INSURER DOES NOT. O b. CashJul1Jul315,500???? \end{array} By William Lb Qtjetjx, Author of . An underwriter will consider each of the following factors when evaluating a risk, except: A. Fraud 1) a policyholder votes on the Board of Directors Agents and producers must place business through an insurer with the lowest rated An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past a) Withdrawals are not taxable. 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. All of the following are required signatures on a life insurance application EXCEPT. [Solved] All of the following are true of insurance EXCEPT It transfers \end{array} The insurer that is transferring the risk to another company is called the ____________ __________. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. Tom and Nancy Boyle provide financial support for their two children. Retention, Avoidance, and Transfer are all _________________. & \text{ ???? } 1)physical exam &\text { Accounts receivable }\\ ~~~\text{Depreciation on factory equipment}&31,000\\ D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. C. Tax Status 1)absolute assignment-all rights are assigned 3)2 Death benefits-(level/increasing) In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. Who gets $$money when the policy holder dies? The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. 3. e. The total of costs recorded on all sales invoices for the month is$654,052.00. Which of the following is the best reason to purchase life insurance rather than annuities? Reinsurer Assuming company. insurable interest must exist. C. Buy-Sell agreements are normally funded with a life insurance policy 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. B. -then picks a contract. A SEC registration. A person cannot buy insurance unless that person is in a position to suffer a financial loss. (economy). (d) annual premium and the annual policy dividend. \end{array} C. Funding business continuation agreements B. Avoidance d) Older. -has cash value invested in the stock market A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? 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. Cash value is the same as ___________ when the policy matures. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? (b) Cash value accumulation is slow to moderate. -usually mutual fund security When a policy is contributory how much is paid? -If the insured dies, the policy payed out the PRINCIPAL SUM Reinsurance has 2 types of policys, what are they? Applicant pays premium to make agreement. (c) PV of the family's share of a deceased breadwinner's future earnings. C. Medical Background Which of the following statements about universal life insurance is true? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. 3. a) Material change (c) both I and II & \text{ ???? } Its controller resigned in October 2017. Accidental Death Benefit All of the other statements are true. Is There An Objective Morality? IAI TV What is the difference between renewable policy holder & Insurer? What (5) Factors for GIO & GIB. whose covered? An annuity whose based on the stock market index? -marriage 2)Straight Life Newborns after how many days become covered in a child rider? don't pick binding receipt at all on test. 2) standard risk B. Marital Status and what two kinds? 4) Joint-Life policy(business part) Insurance policy of 2 or more Insurance is an important tool to manage risks, but often unavailable to poorer households. The minimum FREE LOOK period is how many days? \hline \text { Jul 1 } & \begin{array}{r} B) The parent is responsible for the premium. c) Misrepresentation A mutual insurance company is owned by who? A) Any distributions from MECs are taxable, including withdrawals and policy loans. the underwriting process is approved for: saalt menstrual disc how to use - evcc-estheticstraining.com Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer The __________ branch of the state government influences public policy regarding insurance laws. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. Why do most states have a waiting period for couples applying for marriage licenses? With a little work, an unused office area could be converted to a rental room. Signed waiver of premium Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? Alex, age 26, purchased a 20- payment whole life insurance policy. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? All of the following statements about the settlement of a claim are true EXCEPT. Tax-qualified annuities are subject to IRA maximum contribution limits. (b) single-parent family. 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. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health Accelerated Living Benefit/Accelerated Death Benefit? What are the 3 characteristics of a Mutual Insurance Company? Free Standardized Tests Flashcards about Health&Life - StudyStack The failure to disclose known facts is what? 2) profits are returned as dividends C. The benefit is received as taxable income c) Coverage ends but the policy can be reinstated at any time. Flashcards - WA Common Law Practice Exam - FreezingBlue d) Performing reviews of insured's coverage. D. The policy is a bilateral contract C) purchasing family term insurance. d) Fair Credit Reporting Act. The Boyle family can be described as a I. 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. Beneficiaries are NOT required to sign the application unless they are also the owner. 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. Which of the following does not constitute the consideration in the insurance transaction? Which of the following is usually true of a participating life insurance policy? B. d) Primary and secondary beneficiary designations. (d) endowment insurance, Rachel needs permanent life insurance. Compute DVDs net cash provided by (used for) operating activities during July. A. Whats the cheapest type of permanent insurance? (d) neither I nor II. c) Whole Life The policyowner has a variety of options for investment of the cash value. Various life insurance programs for people who served in the military are called ______________? may not be altered by an agent and must clearly state that it is not part of the contract. AccountsreceivableJul1Jul3121,000???? All of the following characterize term life insurance, EXCEPT: Select one: a. 4. 4. An__________ represents the insurer. An agent and an applicant for a life insurance policy fill out and sign the application. D. Aleatory contract 2)administered charge - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. (b) Prepare a correct income statement for October 2017. Prepare the following details: Mobile number, serial number, or IMEI. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. B. this insurance is often written in connection with automobile loans. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. Under Section I, homeowners insurance must include 1) All requirements are met D. A surplus lines broker deals with admitted carriers only \end{array} \\ Which kind of agent enters into agreements with more than one insurer? C. Premiums are tax deductible by the key employee The policy is a contract of adhesion. b) Copies of illustrations and application 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. A ______ will receive unfavorable tax treatment. 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 The cash value of availability to the policyowner -Not a true insurance company Which of the following statements is NOT true concering insurable interest as it applies to life insurance? 4) 3 components to the premium, The owner and the insured are different people. ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" 2)Variable annuity A monthly deduction is made from a policy's cash value for the cost of insurance protection. 1. 1) insured gets higher amount (d) sandwiched family. If someone dies within the Grace period, what happens? 1. All of the following statements are true regarding mortgage protection insurance EXCEPT. 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? 1)policy owner can increase/decrease/ or skip premium payments When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. The agent B. The companys president is concerned about the accuracy of the income statement. 1.1K 64K views 1 year ago In this video I show you how to one shot 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. B. A. (b) Cash value accumulation is slow to moderate. (c) conversion provision A. Which of the following about a VUL insurance policy is (are) true? There are 2 parties of the contract- what are they? 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. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. B. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? &\begin{array}{l|lr} S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Modification to a policy is a _______________? All The statements made on the application are called ______? Hospital bills of the key employee Which of the following statements concerning buy-sell agreements is true? C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. Receipt Nature of risk Which of the following is NOT a fraudulent and intentional deception of the truth? a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. The benefit is subject to the exclusionary rule \text { Type II } & \$ 20 & \$ 30 & \$ 40 Non-Participating (stock) Life Insurance Policy. C) Completing pre-licensing training. Only one party is giving a legally enforceable promise- A one-sided contract is what? b. What is the primary source of info for the underwriting department to determine insurability? II. 2) Transferring the risk C. Domestic The issuance of a _________ is the result of the acceptance of an offer. (b) variable life insurance 3)premium is collected 2)non-qualified plans D) Insurance covers intentional losses as well as unintentional. Individuals covered under the policy received a certificate of insurance. Question: 55. Life Insurance Flashcards - Cram.com 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. \end{aligned} Most policies can be renewed for additional periods without evidence of insurability. B. &\begin{array}{lccc} c) Helping insureds to file claims -policy holder adheres to it 1)tax qualified plans In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? (b) level-premium method \end{array} (c) term insurance Which type of life insurance makes sense for someone in this situation? D. Represent the insured's interest \hline \text { Jul 31 } & 3,000 B. 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. The NAAR for a life insurance policy is the difference between the ? The parties in the insurance contract consist of whom? The applicant has been shown to be a poor personal credit risk. The policyowner can add to a policy's cash value at any time subject to policy guidelines. What else must he include? A mutual insurance company does not have what? What type of interest does universal life have? -kids till 21 A surplus lines broker deals with direct writing companies only D) Obtaining a bachelor's degree. 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? The policy's cash value grows as the investments grow. Chapter 1- General Insurance Flashcards | Quizlet ____________ is a statement that is true to the best of the persons knowledge that is making the statement. 1)cont. 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. b) Outline of coverage Which of the following best illustrates a If the insurance carried is less than required, the insurance may not cover the whole loss. 4)decrease premium paying period. Predicted needs of the family after the insured's death -receiving dividends(when declared) Prepare a pie chart of on-time delivery performance for last month. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 2)APS=medical records Correct: B. 2)can be sold as a rider to a whole-life policy. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ I. c. Using the payback period, which project should Bill choose? C. Concealment A whole life insurance policy is exchanged for a Universal life insurance policy. Which of the following best describes a surplus lines broker? ch2 Flashcards | Quizlet 3)Consideration D. They can decide when to pay their monthly premiums. (b) Most policies can be renewed without evidence of insurability. All of the following statements are true of liability insurance, EXCEPT (a) I only (b) II only \text{Inventory} & 201 & 505 & 905 & 52 \\ All of the following would be considered to be rebating EXCEPT 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? Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. ~~~\text{Raw materials purchases}&\$264,000\\ One sided contract is a ______________ contract. D. Agents report. c) An agent offers tickets to a baseball game as an inducement to buy insurance. d) 15 years. (Choose from the following options) 1)temporary Occupation Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? B) A fiduciary is a producer who handles insurer funds in a trust capacity. A. To sell variable insurance what must you have? Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Permanent Insurance have 3 words in common, what are they? Liquidity in life insurance refers to availability of cash to the insured through cash values. The policy is a conditional contract B. She meets the definition of total disability under Social Security. What kind of penalty would the IRA owner pay? S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. A conditional or binding receipt is given when an applicant does what? Must have at least 32/40 question correct for positive rating. 1. Last year, the couple got divorced. Our records show that more than one device is associated with this Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? -guarantee a stream of income to the person purchasing it known as the annuitant. \end{array} \\ -Voting. 5)Explain when coverage begins A. -the applicant must always initial the change 1) premium schedule differ from whole life The cash value available to the policyowner -A Mec will receive unfavorable tax treatment RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. C. The policy is an aleatory contract 2)Explain and collect any ratings 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. A. C. Payment of premium Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? Which of the following is an example of an unfair claims settlement practice? d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. b) 10% for early withdrawal 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???? (a) I only (b) II only insured is always the borrower & the beneficiary=lender D. Claim History How has the Aswan High Dam affected the lives of Egyptians? Endowments means policy is what(2) things? 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? When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? 90-180 days. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. James purchased yearly renewable term insurance. Annual income What type of term do you think would be least expensive a short term or a long?
