c. thoughts of harming a neighbor All of the following information about a customer must be used in determining annuity suitability EXCEPT D. The ratings are available to the public IRS classification of a policy that is overfunded? 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. 1)premium payment D) the minor in a juvenile policy. (1), In Universal life, what options can the policy owner have with the premium payments to do? B. Beneficiarys age After Alex has made 20 premium payments, his life insurance policy is considered 1. -guaranteed/fixed/level payment, -Immediate "annuitization phase" 2) standard risk The 7 paytest is used to determine if a policy is a _______? A life insurance license. Correct: A. -Take it or leave it contract &\text { Rental Class }\\ Which method makes the most sense for her to employ? (d) sandwiched family. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Difference between Universal Life Insurance and Whole Life Insurance? D. A surplus lines broker deals with admitted carriers only \text{Inventory} & 201 & 505 & 905 & 52 \\ (c) The number of times the coverage can be renewed is limited. &\begin{array}{cr|} 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???? \hline (\$ 000) & 1 & 2 & 3 & 4 \\ (a) present value of future benefits and the present value of future premiums. The concept that the insured should not profit from an insurance transaction is called what? It is the specific cause of loss. \textbf{Income Statement}\\ d) Older. 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. The insurance provides protection for a specified period of time. Who would be eligible to obtain SGLI? 1. All of the following statements regarding contracts of indemnity are true EXCEPT a. All of the following are required signatures on a life insurance application EXCEPT. A corporation is the owner and beneficiary of the key person life policy. B. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. c) Helping insureds to file claims An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. B. All of the following are business uses of life insurance EXCEPT b) State attorney general D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". b) The elderly Which of the following documents must be provided to the policyowner or applicant during policy replacement? cash value increases while face value remains the same. What does "liquidity" refer to in a life insurance policy? A producer wishing to appeal the final order of the commissioner would appeal to???? A false statement in the application for insurance is_____________. C. They can borrow higher amounts off of their policies D. The policy is a bilateral 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. b) Cost of living rider. b) An agent offers to share his commission with a policyholder. \text { Type I } & \$ 30 & \$ 35 & - \\ Steven prints a pamphlet to advertise his life insurance business. The 4 characteristics of a universal life policy are? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). What happens when a policy is surrendered for its cash value? M327. Misappropriation or illegal withholding of the policyholder's money. All of the following are true of insurance except: a) protects against uncertainty b)means sharing of loss c)eliminates risk d)transfers risk Answer: Eliminates risk Question: Which of the following is NOT true about insurance? 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 -then picks a contract. What constitutes the acceptance of an offer? A conditional or binding receipt is given when an applicant does what? b. it frequently includes coverage for losses due to casualty and theft. b) Adjustable life Misrepresentation, Concealment and Deceit are all examples of what? C. Concealment 2. What type of term do you think would be least expensive a short term or a long? The issuance of a _________ is the result of the acceptance of an offer. Waiver of Premium- What happens to the insurer? . the underwriting process is approved for: (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. b. (b) single-parent family. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. D. Concealment 3)low premiums. 3) policy builds cash-value d. The NAAR for a life insurance policy is the difference between the Hazard 3)according to the source of annuity income a) Aleatory 3)they provide insurance to members. Whats the "take it or leave it contract"? When will coverage begin? The ___________ controls all rights of the contract. Arrest History. 4. B. Insureds current and future income It is most appropriate when an insured needs lifetime protection. Correct: A Insurance . \end{array} The cash value available to the policyowner 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. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Jul313,000\begin{aligned} a) Accumulated at interest c) Premium accountability. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Accelerated Living Benefit/Death Benefit is what type of rider? Accidental Death Benefit A state administered health insurance for the needy? -tax free accumulation of borrowing. 1)Whole Life b. (a) I only (b) II only The policy is a contract of adhesion (b) tax-free exchange provision 4)decrease premium paying period. 1)increase cash value Which of the following is true regarding the beneficiary designation of the former spouse. (3), 1)bank trust officer -cash value options There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights \hline && \text { Jul 31 } & 111,000 \hline & \text { Jul 1 } & \begin{array}{r} Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? \hline \text { Jul 1 } & \begin{array}{r} \hline & \text { Jul 31 } & 58,000 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? The applicant accepts the invitation by paying the ___________. 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) Producer. What are (4) ways annuities are classified? Concerning insurance, the definition of a fiduciary is Is claim still paid if there is a misstatement of age or sex? A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. a) Consumer Privacy Act A person cannot buy insurance unless that person is in a position to suffer a financial loss. (c) PV of the family's share of a deceased breadwinner's future earnings. \end{aligned} a) To limit the insurer's liability after the 2 year waiting period Certificate holders may convert coverage to an individual policy without evidence of insurability. In order for the contract or policy to be valid or legal? What is the difference between renewable policy holder & Insurer? What is the term for a cause of loss, such as the theft of a car? Question: All of the following statements about variable life insurance are true EXCEPT O a. C. A surplus lines broker accepts business only from non- resident agents There is a minimum guaranteed interest rate on all sub-accounts. A surplus lines broker deals with direct writing companies only An agent has authority to do all of the following, except: A. Countersign insurance contracts 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. Which of the following about decreasing term insurance is true? Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? 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. b) Larger. A. b) Copies of illustrations and application S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. This is called. The debtor does not have an insurable interest in the life of the lender. b. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . 1)tax qualified plans Which of the following about the use of ordinary life insurance is true? Joe, Larry, and Curly own a small business. It has cash value that is invested into the stock market through mutual funds/securities. \end{array} ~~~\text{Depreciation on factory equipment}&31,000\\ Buy-sell agreements are normally funded with a life insurance policy. An agent and an applicant for a life insurance policy fill out and sign the application. 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. ~~~\text{Selling and administrative salaries}&75,000\\ d) 50% tax on the amount not distributed as required. The policyowner can add to a policy's cash value at any time subject to policy guidelines. The shifting of risk of loss to a larger homogeneous group is known as what? &\text { Accounts receivable }\\ c. Using the payback period, which project should Bill choose? O b. Who represents the insured when dealing with insurance companies? insurable interest must exist. Last year, the couple got divorced. b) A producer who handles insurer funds in a trust capacity. Which of the following does not constitute the consideration in the insurance transaction? 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. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. Statement of good health 2)Foreign Insurer c) Conditional Which type of risk involves the possibility of loss or gain? c) National Association of Insurance Commissioners As her friend, you have been asked to review the income statement and make necessary corrections. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? (2), The current market will influence the cash value \hline 3) Increasing Term. A) the agent. Adverse selection is well controlled. 6)free-look period-$ back guaranteed. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Premiums are not tax deductible as a business expense. c) Extended term \hline \text { Jul 1 } & 5,500 &&\\ A debtor has insurable interest in the life of a lender It is a type of tort. Correct: A.A peril. c) Comparisons with similar policies She has limited income and significant life insurance needs. B. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. D. The face amount remains the same throughout the life of the policy. D. Speculative Risk (b) Prepare a correct income statement for October 2017. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution Your device, make and model. An insured owns a life insurance policy. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? What will probably happen? (a) Interest is credited monthly to a policy's cash value. How much life insurance should Sam advise . ___________ is the persons whose death triggers payment. ~~~\text{Advertising expense}&90,000\\ Insurance is an important tool to manage risks, but often unavailable to poorer households. Now Tamara can afford whole life insurance. 2)the face amount Jul3125,500\begin{aligned} ____________ is the transfer of the right of recovery from the insured to the insurance company. \hline \text { Jul 31 } & 25,500 Pro rata liability applies. The penalty is 50% of the shortfall from the required annual amount. B. _______ pays dividends to the stock holder. \end{array} Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. All of the following would be considered to be rebating EXCEPT Occupation All of the following are characteristics of group life insurance EXCEPT. Accelerated Living Benefit/Accelerated Death Benefit? Group life insurance is most often issued as guaranteed annual renewable term. C. A husband or wife has an insurable interest in their spouse Insurance companies can charge an interest rate based on the policyowner's credit report. Explain your answer. 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. C) the proposed insured. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. -provides income for retirement Insurance is not designed to cover _____________ losses. c) Fixed premium Prior to October 2017, the company had been profitable every month. One sided contract is a ______________ contract. D. Workers compensation. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? II. B. All of the following are true of key person insurance EXCEPT ) The key employee is the insured. Medical exams provide information on current health. Their premiums are lower Hammond estimates that it will manufacture 5,000 televisions next year. (d) free look provision. 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. Term life insurance provides the largest amount of coverage for the lowest amount of premium. d) Paid-up option. C. Whole life Type I rooms do not have wireless Internet access and are not available for the Business rental class. A. Exclusions always exist, and there is a reason for each one. 3)increase the length of coverage B. c) The inspection report Any gain in the policy's cash value is . C. Unilateral contract Most policies can be renewed for additional periods without evidence of insurability. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. \hline \text { Jul 31 } & 3,000 4)settlement options, 1)stand alone policy 2)Straight Life a) Accepted accounting principal. b) Failure to promptly settle a claim when liability has been clearly established 3)MIB=records of all previous insurances they had. They become permanently disabled Which of the following best describes a surplus lines broker? b) Human life value approach 3) Retaining the risk.
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