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. She meets the definition of total disability under Social Security. \hline && \text { Jul 31 } & 111,000 a) Year only. B) They illustrate the nonguaranteed elements of the policy. B. (b) They increase at a decreasing rate. 3. What are (4) ways annuities are classified? -marriage Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. &\begin{array}{lr|rr} Individuals covered under the policy received a certificate of insurance. Which risk management type is shifting the risk of loss to a larger homogeneous group? 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. Rebating is an unfair trade practice and is regulated by law. What adds coverage and modifies coverage? The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? What is a statement in the application guaranteed true in all respects? Surplus lines broker deals with admitted carriers only Predicted needs of the family after the insured's death This is called. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. O c. The policyowner has the option of investing the cash value in several investment accounts. b) Fiduciary responsibility. What is the primary source of info used to determine insurability by the underwriting department? 3)Consideration good health 1. a) Small employers Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. Correct: B. (c) variable life insurance. (a) They increase at an increasing rate. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. -low commissions 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. 1) premium schedule differ from whole life Exclusions always exist, and there is a reason for each one. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. M327. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} Hazard What are (4) characteristics of permanent insurance? Funding against financial loss caused by the death of a key employee D) adding cost of living coverage. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . A. &\text { Accounts receivable }\\ All renewable term policies are accepted without__________ and only with_____ collected. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. DONT PICK IT!!!!!! 2)Explain and collect any ratings D. group credit insurance must have a suicide clause . An underwriter will consider each of the following factors when evaluating a risk, except: A. Statements in the application that are guaranteed true but later found to be false may result in what? Since they may receive a dividend (not guaranteed), such policies are known as participating policies. O d. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. The NAAR for a life insurance policy is the difference between the c) Term life d) Making claims payments which clearly indicate under which coverage payment has been made. B. Marital Status 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. 3)premium is collected SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). An insured owns a life insurance policy. the application is used at the primary source of info. A. A. The issuance of a _________ is the result of the acceptance of an offer. In an insurance contract, the value that each party gives the other is called the: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? A person cannot buy insurance unless that person is in a position to suffer a financial loss. -assignor=assignee -its a rider CashJul1Jul315,500???? \text{Inventory} & 201 & 505 & 905 & 52 \\ Most agents try to collect the initial premium for submission with the application. c) Increases annually. \textbf{For the Month Ended October 31, 2017}\\ a) Accumulated at interest Correct: A.A peril. A policy summary The correct answer is: Premiums are typically paid by the lender. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. 3. 1) the premium amount ~~~\text{Advertising expense}&90,000\\ It is a type of tort. Whats the cheapest type of permanent insurance? If someone dies within the Grace period, what happens? 2. baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. a) Accepted accounting principal. B. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? D. The benefit is received tax free An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. C. Application (b) II only c. continuous premium whole life c) Conditional Mutual life policy. A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . 3)semi-annual Address of his principal office Legal Purpose Beneficiary's age C. A surplus lines broker accepts business only from non- resident agents d) Producer. -ages 25,28,34,37,40 D. The benefit is received tax free. (b) current assumption whole life. C. Premiums are tax deductible by the key employee & \text { Depr } & 3,000 \\ ____________ is a statement that is true to the best of the persons knowledge that is making the statement. Group life insurance is most often issued as guaranteed annual renewable term. c) Disclosure rule Most policies can be renewed for additional periods without evidence of insurability. 3)Minors. As her friend, you have been asked to review the income statement and make necessary corrections. The cash value available to the policyowner b. (a) The insurance provides protection for a temporary period of time. The Waiver of Cost of Insurance rider is found in what type of insurance? -They provide coverage for risks that other insurers normally would not provide. 3. Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. D. Offer A. If the insurance carried is less than required, the insurance may not cover the whole loss. Which of the following is TRUE regarding assignment rights for . d) The policy can be reinstated by paying back all policy loans and premiums. Insurers use this law in order to predict certain types of losses and set appropriate premiums. A corporation is the owner and beneficiary of the key person life policy. d) Graded Premium. Which of the following statements about limited-payment life insurance is true? ? -pay for certain time and stop 3. considers Lloyds of London an Alien insurer 3)Explain any riders or exclusion See Answer. 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) Any distributions from MECs are taxable, including withdrawals and policy loans. \\ Endowments means policy is what(2) things? The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. b) Outline of coverage A conditional or binding receipt is given when an applicant does what? In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). \text{Sales revenue}&&\$780,000\\ Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. A. (a) capital retention approach D) the minor in a juvenile policy. 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. 3) Increasing Term. b) A producer who handles insurer funds in a trust capacity. C. Loss of personal income Which of the following is an example of an unfair claims settlement practice? A mutual insurer has no stock, and is owned by the policyholders. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds The companys president is concerned about the accuracy of the income statement. What does it mean when a policy is limited pay life? 90-180 days. 4. (d) Premiums increase at an increasing rate upon renewal. AKA-payout phase. Correct: C. Condition contract, enforceable only under certain conditions. \end{aligned} b. Term. 1) Family Maintenance(breadwinner) What is the term for a cause of loss, such as the theft of a car? In a car accident dealing with ADB who covers the passenger? If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? Which of the following is the basic source of information used by the company in the risk selection process? 2)can be sold as a rider to a whole-life policy. How has the Aswan High Dam affected the lives of Egyptians? A state administered health insurance for the needy? D) Obtaining a bachelor's degree. D. Reduction is a method of managing risk. C. Independent rating services evaluate and rate the financial ability of insurance companies A) the agent. Conditional Contract -20 pay life-paid up at 65 S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. 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 insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. If applicant is not the insured- then insureds signature is required cash value increases while face value remains the same. 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 7 paytest is used to determine if a policy is a _______? The CAS number shown in an entry is typically . 2) profits are returned as dividends O b. Pertaining to insurance, what is the definition of a fiduciary responsibility? (d) neither I nor II. B. a) No penalties, since the owner is older than 59 A SEC registration. An__________ represents the insurer. Waiver of Premium- What happens to the insurer? 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. Policyholders B. 1) mentally incompetent persons 1)Whole Life . There is a limit for a withdrawal and the insurer charges a fee. 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. &\begin{array}{l|lr} A. A. 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. A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. a) Agent's report 17,000, InventoryJul122,000???? O b. D. Breach of warranty Social Security is designed to provide a base of economic security B. \text{Less: Operating expenses}\\ Which of the following statements about endowment policies is true? She has limited income and significant life insurance needs. &\begin{array}{lr|rr} -policy holder adheres to it By William Lb Qtjetjx, Author of . An aleatory contract is a contract where the monetary values of the parties performances are________________. (2), The current market will influence the cash value a) To limit the insurer's liability after the 2 year waiting period When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A.