Policyholders &\begin{array}{lr|rr} Why?". When an applicant pays the initial premium the agent will give them a what? 5)Explain when coverage begins
b) 5 years only. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. A. c) Term life c) 10 years. c) Whole Life What kind of penalty would the IRA owner pay? An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. A. -the applicant must always initial the change
B. \hline & \text { Jul 31 } & 19,500 (c) both I & II (d) neither I nor II. b. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds Insurance is designed to cover both intentional and unintentional losses. (b) Cash value accumulation is slow to moderate. 10 year level term b. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} On DUE DATE. D. Represent the insured's interest Which of the following best describes a surplus lines broker? B. 2)not payable in conjunction. A key person insurance policy can pay for which of the following? a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . 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? A mutual insurer has no stock, and is owned by the policyholders. The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. \text{Less: Operating expenses}\\ Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? -then picks a contract. Correct: C. Consideration. 1. Agents and producers must place business through an insurer with the lowest rated a) The policyholders or stockowners of the company A whole life insurance policy is exchanged for a term insurance policy. \hline \text { Jul 1 } & 22,000 \\ True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles C. Buy-Sell agreements are normally funded with a life insurance policy D. Term life. When must insurable interest exist in a life insurance policy? b) Failure to promptly settle a claim when liability has been clearly established &\text { Accounts receivable }\\ -If the insured dies, the policy payed out the PRINCIPAL SUM
(b) The face amount of the policy is paid if the insured lives to age 65. The issuance of a _________ is the result of the acceptance of an offer. 2. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. 3)certified public accountants, Is insurance that is provided by the Federal or State government
b. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. (c) Most policies can be converted to a permanent life insurance policy. D. Claim History B) A fiduciary is a producer who handles insurer funds in a trust capacity. Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} See Answer. \end{aligned} The applicant's medical background is addressed in Part 2 - Medical Information. You should now have gotten the answer to your question "All of the following statements are true of liability insurance, EXCEPT:", which was part of Insurance MCQs & Answers. Insurance is not designed to cover _____________ losses. The cost of a living rider is calculated by what? The purpose of an estate clearance fund is to pay all of the following EXCEPT. &\text { Accounts payable }\\ when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Jul313,000\begin{aligned} Accidental Death Benefit
Members are assessed to fund the corporation. Example: company that is incorporated in NJ and sells in NJ. A ______ will receive unfavorable tax treatment. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} O c. The policyowner has the option of investing the cash value in several investment accounts. &\text { Retained Earnings }\\ -has cash value invested in the stock market
All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. Accelerated Living Benefit/Accelerated Death Benefit? d) The policy can be reinstated by paying back all policy loans and premiums. A policy summary usually includes all the listed information, and must be delivered along with a new policy. Tom and Nancy Boyle provide financial support for their two children. When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. What are the two options in death benefit options? \end{array} Liquidity in life insurance refers to availability of cash to the insured. c. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? In a car accident dealing with ADB who covers the passenger? (d) free look provision. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? B. -A Mec will receive unfavorable tax treatment
1)temporary
The applicant accepts the invitation by paying the ___________. Social Security is designed to provide a base of economic security B. What is the primary source of info used to determine insurability by the underwriting department? -also the agent may be required to initial the change, statement of health from insureds personal physician, What are 2 federal laws that protect policy holders & forms that must be completed? What happens when a policy is surrendered for its cash value? c. thoughts of harming a neighbor d) The Guaranty Corporation. 4)policy matures at age 100. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Benefits received are considered income taxable Certificate holders may convert coverage to an individual policy without evidence of insurability. All of the following statements about the characteristics of Social Security are true EXCEPT A. B. Involuntary Risk Which of the following statements about universal life insurance is true? c) Increases annually. d) Loss. B. Beneficiary's age Reinsurer Assuming company. 2)no cash-value
A whole life insurance policy is exchanged for a Universal life insurance policy. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. Misappropriation or illegal withholding of the policyholder's money. Annual income 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. Which of the following types of insurance policies would perform the function of cash accumulation? 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. 1. II. A debtor has an insurable interest in the life of a lender. 4)decrease premium paying period. 2) Binding Reciept. \end{aligned} b) The agent's report The policyowner has a variety of options for investment of the cash value. All of the following statements concerning coinsurance are true, EXCEPT . A. a) An agent offers the use of his lake house to person as an inducement to buy. II. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. 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) I only (b) II only B. Twisting Which of the following is a physical hazard? The correct answer is: The premium decreases to zero by the end of the policy period. Insurers use this law in order to predict certain types of losses and set appropriate premiums. 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. Buy-sell agreements are normally funded with a life insurance policy. D) the minor in a juvenile policy. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer
4. c) Copy of the original application c) Counselor If the ultimate consumer is a business that collects and pays to the government VAT on . An insurer that was incorporated in a different state that it is doing business in. 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. Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. &\begin{array}{l|lr} Tax-qualified annuities are subject to IRA maximum contribution limits. An agent has authority to do all of the following, except: A. Countersign insurance contracts B) Underwriters. B. AccountspayableJul1Jul3114,500??? Misrepresentation, Concealment and Deceit are all examples of what? \\ 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. \end{aligned} 2)interest sensitive
Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". C. Department of State The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. 2) Transferring the risk
c) Accelerated benefit rider. Which of the following is true regarding the beneficiary designation of the former spouse. Represent the insured's interest Agent Sam is using the human life value approach to assess Mary's life insurance needs. c) Fixed premium d) 50% tax on the amount not distributed as required. D. Agents report. Estate conservation A FINRA registration. The penalty is 50% of the shortfall from the required annual amount. 2)premium gets lower. -immediately considered fully paid up
Predicted needs of the family after the insured's death A. Suitability When will coverage begin? -receiving dividends(when declared)
. 3. (must exist at the time of application). She meets the definition of total disability under Social Security. A _______ __ is the additional premium needed to get covered with high or substandard risk. c) National Association of Insurance Commissioners The total of all requisitions of direct materials issued during the month is $252,230.00. D. A surplus lines broker deals with admitted carriers only B) Passing examination with 75% or higher score. ~~~\text{Raw materials purchases}&\$264,000\\ ~~~\text{Utilities expense}&12,000\\ Accelerated Living Benefit/Death Benefit is what type of rider? 1)Statement of continued good health
d) Producer. (b) Any withdrawal of cash value reduces the death benefit. Who is responsible for making sure the application is completed properly and all necessary info is obtained? Correct: C. Unilateral contract. b) Hazard & \text { Depr } & 3,000 \\ -and the right to vote. a) Agent's report Exclusion Categories (c) both I & II (d) neither I or II. The insurer that is transferring the risk to another company is called the ____________ __________. -policyowners right provision
2)when benefits begin
\end{array} All of the following are characteristics of group life insurance EXCEPT. Nonparticipating policy. B. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ a) Because the insured is currently not a drug user, his policy will not be affected. Jul3125,500\begin{aligned} \textbf{For the Month Ended October 31, 2017}\\ When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? a. the application is used at the primary source of info. (4), 1)monthly
When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. (c) PV of the family's share of a deceased breadwinner's future earnings. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Who assumes control over an insurance company's funds and management if it becomes insolvent? Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. When applicant is not the insured ______________ must exist. the underwriting process is approved for:
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 Instructions Which of the following is the best reason to purchase life insurance rather than annuities? Which type of risk involves the possibility of loss or gain? C. Risk 2)Straight Life
b) Universal Life _________ is a determination that a statement made as a warranty, or true. 2. What does it mean when a policy is limited pay life? C. Unilateral contract -Not invested in stock market
& \text{ ???? } 4) 3 components to the premium, The owner and the insured are different people. Applicant pays premium to make agreement. Concerning insurance, the definition of a fiduciary is The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 1)physical exam
All of the following are true of insurance except: Which of the following is NOT true about insurance? Last year, the couple got divorced. The 4 characteristics of a universal life policy are? 3) Ordinary. D. Premiums are tax deductible as a business expense, B. ~~~\text{Rent on factory facilities}&60,000\\ A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. Daycare is considered to be among these expenses. 2)explain any ratings
d. What are (4) ways annuities are classified? Department of Defense 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. See Page 1. -guaranteed/fixed/level payment, -Immediate "annuitization phase"
Get more out of your subscription* Access to over 100 million course-specific study resources All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. 1)premium payment
Non-Participating (stock) Life Insurance Policy. 4) Joint-Life policy(business part) Insurance policy of 2 or more
What must exist at the time of the application? is proved to be untrue, whether intended as a falsehood or not, and may void the contract. Insurance is designed to provide protection against which of the following? b) Fixed income Weiss and Fitch are two of these services, although there are more. also known as acceptance. The Waiver of Cost of Insurance rider is found in what type of insurance? Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . Reinsurance has 2 types of policys, what are they? c. Using the payback period, which project should Bill choose? All of the following statements regarding contracts of indemnity are true EXCEPT a. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. When a policy is non-contributory how much is paid? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. C. Tax Status Newborns after how many days become covered in a child rider? 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. What are the (5) Factors considered with combination policies Who and What are they? D) Obtaining a bachelor's degree. \end{aligned} The cash value available to the policyowner Everything else equal, how would the factor below affect the market value of a stock? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. 3)semi-annual
&\begin{array}{lccc} Which of the following is NOT an allowable 1035 exchange? 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same
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. B. IRS has no jurisdiction D. Gender. D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. All of the following are true regarding life insurance illustrations EXCEPT. What is the primary source of info for the underwriting department to determine insurability? 2)face amount is set
A. Acceptance \textbf{Income Statement}\\ b) The elderly C. The policy is an aleatory contract Carl would like to purchase life insurance. C. Whole life D. The ratings are available to the public 3) Retaining the risk. C. State Education Waiver b) Adjustable life However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued.
c) Comparisons with similar policies d) 15 years. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? \hline \text { Jul 1 } & \begin{array}{r} (c) both I and II Individuals covered under the policy received a certificate of insurance. -Staged intervals
A. ~~~\text{Depreciation on sales equipment}&45,000\\ cash value increases while face value remains the same. \hline A contract between insurer and policy holder. D. Department of Treasury B. 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. -provides income for retirement
(b) variable life insurance Medical exams provide information on current health. Warranty Appoint a solicitor as his or her representative 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? \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ 1) All requirements are met
(d) Its use may be appropriate if a person wants paid-up life insurance by retirement.