(c) Most policies can be converted to a permanent life insurance policy. Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. Misappropriation or illegal withholding of the policyholder's money. An agent has authority to do all of the following, except: A. Countersign insurance contracts The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? Predicted needs of the family after the insured's death The remaining amounts should be charged to selling and administrative activities. 3)Minors. All of the following statements are TRUE concerning Debtor Groups EXCEPT B. Buy-Sell Agreements pay in the event of a medical emergency . B. 2)Decreasing term(premium is low) declining face value A ____ contract requires that both parties perform certain duties. 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. B. An annuity whose based on the stock market index? \end{array} \\ &\text { Rental Class }\\ Correct: A Insurance . When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. b) Fixed income 2)the face amount Legal Purpose Cause of potential loss to property such as fire, windstorm, hail, flood, etc. B. 4. B. Beneficiarys age The debtor does not have an insurable interest in the life of the lender. Which of the following about a VUL insurance policy is (are) true? Hammond Corporation manufactures televisions. Correct: A. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? Universal Life is also known as two things what are they? 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. b) Failure to promptly settle a claim when liability has been clearly established (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? 2)not payable in conjunction. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. Insurers use this law in order to predict certain types of losses and set appropriate premiums. 4. An individual applies for a life policy. C. The policy is an aleatory contract 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. ___________ is the persons whose death triggers payment. The issuance of a _________ is the result of the acceptance of an offer. -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? In addition, they provide financial support for Tom's aged father and Nancy's aged mother. Warranty 6)free-look period-$ back guaranteed. (d) neither I nor II. _________ is a determination that a statement made as a warranty, or true. \hline \text { Jul 1 } & 22,000 \\ 2)APS=medical records (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. What type of policy does the insured most likely have? c. thoughts of harming a neighbor Chapter 3 part 1 Flashcards | Quizlet All of the following statements regarding contracts of indemnity are true EXCEPT a. B. Why do most states have a waiting period for couples applying for marriage licenses? \end{array} \hline && \text { Jul 1 } & 65,000 \\ An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. c. Manufacturing expense accounts and their balances for the month are as follows: DepreciationExpense-FactoryEquipment$5,770.24MiscellaneousExpense-Factory$13,780.48DepreciationExpense-Building2,822.40PayrollTaxesExpense-Factory43,736.00Heat,Light,andPowerExpense9,055.20PropertyTaxExpense-Factory6,088.32InsuranceExpense-Factory1,505.28SuppliesExpense-Factory18,063.36\begin{array}{lrlrr}\text { Depreciation Expense-Factory Equipment } & \$ 5,770.24 & \text { Miscellaneous Expense-Factory } & \$ 13,780.48 \\ \text { Depreciation Expense-Building } & 2,822.40 & \text { Payroll Taxes Expense-Factory } & 43,736.00 \\ \text { Heat, Light, and Power Expense } & 9,055.20 & \text { Property Tax Expense-Factory } & 6,088.32 \\ \text { Insurance Expense-Factory } & 1,505.28 & \text { Supplies Expense-Factory } & 18,063.36\end{array} There are 2 parties of the contract- what are they? What are (4) characteristics of permanent insurance? 1)cont. a) Material change \end{aligned} A. \text { Type II } & \$ 20 & \$ 30 & \$ 40 Correct: D. Concealment. Liquidity in life insurance refers to availability of cash to the insured. ~~~\text{Rent on factory facilities}&60,000\\ EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} -Can't lose value A Contract that binds only one party to future performance, is a (n): A. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} B. (c) conversion provision Statements in the application that are guaranteed true but later found to be false may result in what? In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? An underwriter will consider each of the following factors when evaluating a risk, except: A. &\begin{array}{r|lr} All of the following are characteristics of group life insurance EXCEPT. 4)policy matures at age 100. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . 3) Increasing Term. D. The face amount remains the same throughout the life of the policy. Jul3125,500\begin{aligned} A contract between insurer and policy holder. B. Insureds current and future income B. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). Past-due interest on a policy loan is added to the total debt. (d) annual premium and the annual policy dividend. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer B) Underwriters. Pure risk Acceptance Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? \end{array} A. 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. 4) Joint-Life policy(business part) Insurance policy of 2 or more ____________ insurer is not a type of insurer. Most insurance policies contain a specific limit that an insurer will pay for a single claim. L4. Life Insurance Policy Provisions Options and Riders 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. Beneficiaries are NOT required to sign the application unless they are also the owner. C. A husband or wife has an insurable interest in their spouse c) Premium accountability. Any gain in the policy's cash value is . 2)Family Income(decreasing term-policy) C. Solicit applications on the insurer's behalf The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. b) Policyholder D. Financial Experience. Rates. All of the following are common characteristics of this coverage EXCEPT An insurance consultant CANNOT be which type of persons? Dividends received by policyholders of a mutual insurer are not taxable. (d) They remain level. \end{array} O c. The policyowner has the option of investing the cash value in several investment accounts. 4)Consumer report=credit, -shorter time span for paying premiums D. group credit insurance must have a suicide clause . 3,000, AccountsreceivableJul121,000???? A mutual insurer has no stock, and is owned by the policyholders. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? Term. The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as Policyholders 1)Domestic Insurer D. The flexible premium. Is interest always gained in Universal Life Policy? c) The policy will be voided. (3), WHat is the difference between universal and whole life policies? Consumer report Solved 55. All of the following statements regarding | Chegg.com a) Premium amounts and surrender values All The statements made on the application are called ______? c) The premium for the policy shall be paid either from the creditor's funds, or from charges collected from the insured debtors, or from both. The __________ branch of the state government influences public policy regarding insurance laws. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? \textbf{For the Month Ended October 31, 2017}\\ 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same What are the permanent working capital needs of your company? An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. (receive dividends & the right to vote). 3) Equity-Index annuity. Represent the insured's interest To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} A debtor has an insurable interest in the life of a lender. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. B. This is called. (d) endowment insurance, Rachel needs permanent life insurance. - 20 pay life-premiums paid for 20 years and paid up at 65 C. Medical Background c) Variable Premium (must exist at the time of application). (b) Face amount decreases during the policy period, but premiums remain level. Our records show that more than one device is associated with this Instructions \text { Type I } & \$ 30 & \$ 35 & - \\ \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ Rebating is an unfair trade practice and is regulated by law. 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. ____________ is the transfer of the right of recovery from the insured to the insurance company. The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. ~~~\text{Depreciation on factory equipment}&31,000\\ Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} Waiver of Premium- What happens to the insurer? Insurance is designed to cover both intentional and unintentional losses. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. -receiving dividends(when declared) 1) the premium amount a) No penalties, since the owner is older than 59 C. The death benefit paid to the beneficiary Which of the following best describes a surplus lines broker? (b) current assumption whole life. Life expectancy has increased in the U.S. over the last century. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. It is used to help adequacy and equity in rates. Which risk management type is shifting the risk of loss to a larger homogeneous group? 4)Explain the policy and its provisions &\text { Accounts receivable }\\ A. and what two kinds? c) Helping insureds to file claims It is most appropriate when an insured needs lifetime protection. 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. All of the other statements are true. 4) 3 components to the premium, The owner and the insured are different people. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? saalt menstrual disc how to use - evcc-estheticstraining.com still matures at age 100, -premium is paid off at one time 1)policy owner can increase/decrease/ or skip premium payments -its a rider (a) Interest is credited monthly to a policy's cash value. d) Blackout approach. D. Term life. d) 50% tax on the amount not distributed as required. An insured becomes disabled at age 22 and can no longer work. \underline{\hspace{40pt}}. D) Obtaining a bachelor's degree. a. mentally counting backward from 1,0001,0001,000 B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. a. -has cash value invested in the stock market Height Weight and Health conditions. d) Buyer's Guide. A corporation is the owner and beneficiary of the key person life policy. D. Premiums are tax deductible as a business expense, B. Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. The applicant has been shown to be a poor personal credit risk. -the premiums are paid for a limited time only. (b) Cash value accumulation is slow to moderate. Which of the families below is likely to have the least need for a large life insurance policy? B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. Which model is the better fit for the data? the underwriting process is approved for: a) Small employers (c) variable life insurance. Accelerated Living Benefit/Death Benefit is what type of rider? The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . (a) limited-payment whole life insurance insurable interest must exist. Why?". 3. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). The CAS number shown in an entry is typically . C. group credit life insurance does not build cash values. b) The policy will not be affected. B. & &&\textbf{ Quarter } \\ D. Unilateral Contract (6). All of the following are true of key person insurance EXCEPT Concerning insurance, the definition of a fiduciary is 2)standard-average 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? Which of the following would provide an underwriter with information concerning an applicant's health history? Daycare is considered to be among these expenses. D. Delivery receipt. Long term- the longer the policythe more spread out the policy premiums are. Which of the following is the best reason to purchase life insurance rather than annuities? Accelerated Living Benefit/Accelerated Death Benefit? What type of interest does universal life have? Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. - Limited Pay Life -marriage b) Universal Life 3)Family Policy(Limited but all fam members paid) Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. b. Carl would like to purchase life insurance. (b) tax-free exchange provision a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. When must insurable interest exist in a life insurance policy? &\begin{array}{lr|rr} ($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?" The cash value of availability to the policyowner Life Insurance Basics Flashcards | Quizlet She meets the definition of total disability under Social Security. Predicted needs of the family after the insured's death Insurance is an important tool to manage risks, but often unavailable to poorer households. -But pays you interest, 1)Fixed annuity Which kind of agent enters into agreements with more than one insurer? Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? Misrepresentation, Concealment and Deceit are all examples of what? b. c) Needs approach b) Copies of illustrations and application C. Loss of personal income The primary purpose of buying an annuity is? A policy summary usually includes all the listed information, and must be delivered along with a new policy. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. What happens when there is a Misstatement of age or sex? d) Fiscal responsibility. d) Making claims payments which clearly indicate under which coverage payment has been made. Correct: C. Unilateral contract. 4)explain policy & provisions b) Adjustable life Which of the following is the basis for a claim against an insurance policy? B. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. Steven prints a pamphlet to advertise his life insurance business. A securities license. There is a limit for a withdrawal and the insurer charges a fee. Insurance transfers risk but it does not__________ risk. Correct: C. Concealment, A. An insured is driving her automobile and strikes a large pothole that .
