A. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________? Tom and Nancy Boyle provide financial support for their two children. What type of insurer has no capital stock? a) A retail clerk. Surplus lines broker deals with admitted carriers only An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? a) Small employers c) Term life &\begin{array}{lr|rr} b) Copies of illustrations and application Which of the following is TRUE regarding assignment rights for . Rates All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. Are insurance company underwriters allowed to discriminate? If the corporation collects the policy benefit, then ____________ is a statement that is true to the best of the persons knowledge that is making the statement. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? 2)Legal Purpose
Predicted needs of the family after the insured's death Any gain in the policy's cash value is . c) Premium accountability. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. -Follows all conditions of contract & pays premium, -insurer says how policy works
Modification to a policy is a _______________? Get more out of your subscription* Access to over 100 million course-specific study resources B. A. ___________ is the persons whose death triggers payment. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. Level-increasing face value. b) An agent offers to share his commission with a policyholder. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. 2)APS=medical records
B. Twisting don't pick binding receipt at all on test. Waiver of Premium- What happens to the insurer? 4. 3) Retaining the risk. An individual applies for a life policy. Now Tamara can afford whole life insurance. 3)low premiums. \end{array} \textbf{EMPIRE COMPANY}\\ Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. (d) free look provision. All of the following statements concerning coinsurance are true, EXCEPT . \hline \text { Jul 31 } & 17,000 b. Can term insurance be both renewable and convertible? All of the other statements are true. What are (4) ways annuities are classified? The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. -the premiums are paid for a limited time only. $ cant exceed indebtness. D. The benefit is received tax free. d) Blackout approach. 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? b) Unilateral -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded
&\begin{array}{lr|lr} An agent and an applicant for a life insurance policy fill out and sign the application. Accelerated Living Benefit/Accelerated Death Benefit? B) bonds 3. b. persistent fear of germs This form of life insurance has fixed premiums and the cash value is not guaranteed. b) To deter the policyowner from committing suicide 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. a) Consumer Privacy Act -low commissions
Which of the following is true regarding the beneficiary designation of the former spouse. b) Index used by stock companies \underline{\hspace{40pt}}. C. Social Security works exactly same as private insurance. Life expectancy has increased in the U.S. over the last century. A policy summary usually includes all the listed information, and must be delivered along with a new policy. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same
Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. -The insurer would pay the face amount of the policy minus the past due premium. A. contract of adhesion a) No penalties, since the owner is older than 59 Is claim still paid if there is a misstatement of age or sex? Premiums are not tax deductible as a business expense Non-Participating (stock) Life Insurance Policy. Which of the following about decreasing term insurance is true? It requires evidence of insurability for renewal. An insurance company that was incorporated in a different state it is doing business in and pays dividends to its policyholders is known as a _________. A. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ Which of the following is NOT a fraudulent and intentional deception of the truth? b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. D. Funding against general company financial loss 2) form of interest sensitive life insurance(current market conditions influence the cash value)
Participating policy. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. a) Lump-sum approach C. Risk An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. (c) conversion provision (a) renewal provision Which of the following is the basic source of information used by the company in the risk selection process? \end{aligned} A whole life insurance policy is exchanged for a Universal life insurance policy. Misappropriation or illegal withholding of the policyholder's money. 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. 2) premiums do not change
(Choose from the following options) A debtor has insurable interest in the life of a lender Life Insurance Flashcards - Cram.com To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. He would also like to invest in a mutual fund. One sided contract is a ______________ contract. A Contract that binds only one party to future performance, is a (n): A. e. The total of costs recorded on all sales invoices for the month is$654,052.00. C. Payment of premium Round Trees management makes a forecast of the demand by rental class for each night in the future. ($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?" -sex doesn't determine eligibility. Estimated direct labor costs for next year are$440,000.00. Government Relations: New Challenges and the Ongoing Erosion of 3)according to the source of annuity income
C. it is often experience-rated, with premrums based on expected losses. \text{Inventory} & 201 & 505 & 905 & 52 \\ InventoryJul1Jul3122,000???? Which risk management type is shifting the risk of loss to a larger homogeneous group? Our records show that more than one device is associated with this B. cash value increases while face value remains the same. B. Most policies can be renewed for additional periods without evidence of insurability. D. group credit insurance must have a suicide clause . Life insurance prodceeds All of the following would be considered to be rebating EXCEPT All of the following are business uses of life insurance EXCEPT Which of the following about the use of ordinary life insurance is true? What is the primary source of info for the underwriting department to determine insurability? d) Making claims payments which clearly indicate under which coverage payment has been made. C. Application All of the following are required signatures on a life insurance application EXCEPT. The cash value available to the policyowner When an agent collects the initial premium from the applicant, the agent should issue the applicant a. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? C. The insured may retain part of a risk through deductibles. Being young and healthy means you can skip out on health insurance. 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) blended family. Pertaining to insurance, what is the definition of a fiduciary responsibility? Insurance is not designed to cover _____________ losses. A. What is the term for a cause of loss, such as the theft of a car? Department of Defense Which of the families below is likely to have the least need for a large life insurance policy? This is called. a. \end{aligned} What type of interest does universal life have? Predicted needs of the family after the insured's death are used in the needs approach. All of the following statements about the characteristics of Social Security are true EXCEPT A. ~~~\text{Raw materials purchases}&\$264,000\\ It is used to pay off the balance on the mortgage. On DUE DATE. Domestic Insurer
What is used for the underwriting department to determine insurability? (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. (a) present value of future benefits and the present value of future premiums. Chapter 14/1: Group Health Insurance Flashcards | Quizlet Its controller resigned in October 2017. A persons assets & liabilities at their time of death. 2)no cash-value
\end{array} Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. D. Funding against general company financial loss. A. The debtor does not have an insurable interest in the life of the lender. ~~~\text{Depreciation on factory equipment}&31,000\\ C. Hazards 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. (c) Most policies can be converted to a permanent life insurance policy. Hazard An insurer that is incorporated in the same state that they are doing business in is a_____________.? C. They can borrow higher amounts off of their policies (b) They increase at a decreasing rate. 3)substandard risk. ~~~\text{Depreciation on sales equipment}&45,000\\ 3. b) Conditional receipt A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. The cash value of availability to the policyowner The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. Round Tree has 100 Type I rooms and 120 Type II rooms. Executive office (4), 1)monthly
All of the following are true about health insurance except: 4)Explain the policy and its provisions
a) Material change Insurance is considered a transfer of risk. ____________ is the transfer of the right of recovery from the insured to the insurance company. C. Domestic There is no limitation on the number of key employee plans in force at any one time B. (b) level-premium method \hline && \text { Jul 1 } & 65,000 \\ c) An agent offers tickets to a baseball game as an inducement to buy insurance. b. c) Coverage ends but the policy can be reinstated at any time. What are (4) characteristics of permanent insurance? 3)they provide insurance to members. 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. If someone dies within the Grace period, what happens? Which of the following is usually true of a participating life insurance policy? insurable interest must exist. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. -pays an additional death benefit if the insured dies from an accident
The death benefit varies according to investment experience. Daycare is considered to be among these expenses. Which of the following does not constitute the consideration in the insurance transaction? In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? Cash value is invested in the stock market. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. (d) annual premium and the annual policy dividend. -usually mutual fund security
\text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 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? still matures at age 100, -premium is paid off at one time
Correct: B. 1. Conditional Contract C. Loss of personal income A life insurance policy is exchanged for an annuity. a) Accepted accounting principal. a) Because the insured is currently not a drug user, his policy will not be affected. Can a misrepresentation render the contract void if the misrepresentation is material to the risk? (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. A. 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. _________ is a determination that a statement made as a warranty, or true. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. B. Why?". Which type of risk involves the possibility of loss or gain? &&\\ The insurance provides protection for a specified period of time. c) Guides describing company financial integrity 1)Level
Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. The premium is level and guaranteed not to increase. A. Explain your answer. Which of the following is the best reason to purchase life insurance rather than annuities? Jul3119,500\begin{aligned} A surplus lines broker accepts business only from non- resident agents A. An aleatory contract is a contract where the monetary values of the parties performances are________________. Which of the following best describes a surplus lines broker? Signed waiver of premium D. Financial Experience. Correct: B. c) Extended term 5th Sunday after Epiphany Saint Barnabas | By Saint Barnabas Episcopal c) Helping insureds to file claims Statements in the application that are guaranteed true but later found to be false may result in what? ch2 Flashcards | Quizlet