all of the following are true of insurance except

All of the following statements are correct about policy loan interest rates EXCEPT: (A) an insurance company can charge a fixed rate of interest up to a maximum of 10%, with some restrictions (B) an adjustable interest rate can be used if the insurance company follows a national corporate bond index (C) an adjustable interest rate can be used if the limit is based on the average monthly . D. The face amount remains the same throughout the life of the policy. \hline \text { Jul 1 } & 5,500 &&\\ Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. 3)mortality charge. 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} b. it frequently includes coverage for losses due to casualty and theft. Occupation Which of the following is a physical hazard? A. Foregin b) To deter the policyowner from committing suicide A) the agent. A. A. What is the term for a cause of loss, such as the theft of a car? Prepare the following details: Mobile number, serial number, or IMEI. The application is the basic source of information an insurer uses in the risk selection process. (c) They decrease at a constant rate. A securities license. 1) Conditional Reciept (b) tax-free exchange provision cheating. An agent has authority to do all of the following, except: A. Countersign insurance contracts Surplus lines broker deals with admitted carriers only What else must he include? Why?". 1. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. What are the (5) Factors considered with combination policies Who and What are they? _______ pays dividends to the stock holder. -guaranteed/fixed/level payment, -Immediate "annuitization phase" Correct: B. -paying for certain time and stop. C. The death benefit paid to the beneficiary 1)absolute assignment-all rights are assigned 2)Explain and collect any ratings 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____________? Which of the following best describes a surplus lines broker? All of the following are true of key person insurance EXCEPT ) The key employee is the insured. d) Tax-deductible. C. The benefit is received as taxable income (b) face amount of the policy and the total premiums that have been paid. B. Avoidance when the applicant/owner is not the insured-3rd party *The insured is diagnosed with terminal & chronicle illness 2)APS=medical records A. signed waiver of premium Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. \end{array} An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. O b. (b) single-parent family. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . (c) two-income earner family. b) The policy will not be affected. All of the following statements about term insurance are trueEXCEPTa. D. Offer \text { Type I } & \$ 30 & \$ 35 & - \\ B. Buy-Sell Agreements pay in the event of a medical emergency (b) variable life insurance b. Who appoints the state insurance regulator in many states? C) An insurance contract must contain a copy of the original application. C. Medical Background Rates. -the premiums are paid for a limited time only. Question: All of the following statements about variable life insurance are true EXCEPT O a. All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant (d) Premiums increase at an increasing rate upon renewal. c) Needs approach (d) neither I nor II. don't pick binding receipt at all on test. C. Department of State Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. A whole life insurance policy is exchanged for a term insurance policy. C. Buy-Sell agreements are normally funded with a life insurance policy c) Policy loans are taxable distributions. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. 4. A. Signed waiver of premium Which is generally true regarding insureds who have been classified as preferred risks? A. good health b) Increasing Premium b. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution D. The face amount remains the same throughout the life of the policy. CashJul1Jul315,500???? II. c) The inspection report 3)MIB=records of all previous insurances they had. B) The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy. (4), 1)monthly All of the following statements about universal life insurance are true EXCEPT Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? d) The policy can be reinstated by paying back all policy loans and premiums. Legal Purpose In addition, they provide financial support for Tom's aged father and Nancy's aged mother. (d) free look provision. 1. a. A debtor has insurable interest in the life of a lender ~~~\text{Selling and administrative salaries}&75,000\\ Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. (c) face amount of the policy and the legal reserve. All of the following statements about term insurance are true EXCEPT. \end{array} &\text { Rental Class }\\ Credit life D. Viatical settlement. Premiums are not tax deductible as a business expense. Correct: A. The agent ____________ is a statement that is true to the best of the persons knowledge that is making the statement. A. Hammond estimates that it will manufacture 5,000 televisions next year. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. Chapter 11 - Life Insurance. \end{array} b) Human life value approach 4)annual, Everytime you have a payment due. Which of the following about yearly renewable term insurance is true? Which of the following about the use of ordinary life insurance is true? A corporation is the owner and beneficiary of the key person life policy. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? (receive dividends & the right to vote). The person who receives the benefit when insured dies. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same -Follows all conditions of contract & pays premium, -insurer says how policy works By William Lb Qtjetjx, Author of . An__________ represents the insurer. It requires evidence of insurability for renewal. 2)explain any ratings Insurance is considered a transfer of risk. What are (4) ways annuities are classified? You cannot sell a variable policy without what? All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 2)attorneys 3)increase the length of coverage ________________ are the person who receives benefits payable upon death. II. In this case, the applicant will most likely need to fill out a Statement of Good Health. The replacing company notifies the replacement company. d) Producer. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? 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. A policy summary usually includes all the listed information, and must be delivered along with a new policy. Buy-sell agreements are normally funded with a life insurance policy. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. a) More active. AccountsreceivableJul1Jul3121,000???? d) Contingent. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. C. Conditional contract -A Mec will receive unfavorable tax treatment What are the 3 characteristics of a Mutual Insurance Company? 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. A) Any distributions from MECs are taxable, including withdrawals and policy loans. An insured owns a life insurance policy. B. this insurance is often written in connection with automobile loans. Any gain in the policy's cash value is . \hline Address of his principal office 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. -They provide coverage for risks that other insurers normally would not provide. Rebating is an unfair trade practice and is regulated by law. The cost of insurance protection is referred to as what? 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. They become permanently disabled A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Life expectancy has increased in the U.S. over the last century. All of the following statements about ordinary life insurance are true EXCEPT. C. Funding business continuation agreements (b) reduced. B. IRS has no jurisdiction -But pays you interest, 1)Fixed annuity When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health B) Underwriters. d) Accumulations are tax deferred. It is the specific cause of loss. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. (c) both I & II (d) neither I nor II. (a) capital retention approach Correct: C. Consideration. ~~~\text{Utilities expense}&12,000\\ Type I rooms do not have wireless Internet access and are not available for the Business rental class. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? Which of the following would provide an underwriter with information concerning an applicant's health history? A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? B. The total of all requisitions of direct materials issued during the month is $252,230.00. b) Coverage ends and the policy cannot be reinstated. \hline \text { Jul 31 } & 25,500 Estimated direct labor costs for next year are$440,000.00. 2) Binding Reciept. Members are assessed to fund the corporation. Concerning insurance, the definition of a fiduciary is (Choose from the following options) C) Completing pre-licensing training. a) Indeterminate Premium -then picks a contract. d) Buyer's Guide. 3. d) Policy dividends. What is the difference between renewable policy holder & Insurer? Liquidity in life insurance refers to availability of cash to the insured through cash values. ? B. Last year, the couple got divorced. The applicants(policy owner) c) Premium accountability. Which of the following is NOT an example of a business use of Life Insurance? a) Withdrawals are not taxable. Insurance is designed to cover both intentional and unintentional losses. 3)2 death benefit option Contract of adhesion Tamara purchased a term insurance policy when she had high life insurance needs and limited income. ____________ insurer is not a type of insurer. What happens when there is a Misstatement of age or sex? -Prepays portion of face amount if diagnosed with terminal illness. Jul3117,000\begin{aligned} Economics questions and answers. D. Gender. A contract between insurer and policy holder. (c) both I and II 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) 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. It is most appropriate when an insured needs lifetime protection. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. c) Coverage ends but the policy can be reinstated at any time. (2), The current market will influence the cash value How do premiums for yearly renewable term insurance change as an insured gets older? (a) The insurance provides protection for a temporary period of time. Executive office Their premiums are lower The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. Reinsurance has 2 types of policys, what are they? The designation will be void/. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. a) Types of mutual companies Costs of training a replacement We participate at both the national and state levels as a leading advocate in the judicial, legislative, and regulatory environment to ensure that Members' concerns are heard by lawmakers on issues that impact medical professional liability. See Page 1. c. continuous premium whole life The 7 paytest is used to determine if a policy is a _______? - 20 pay life-premiums paid for 20 years and paid up at 65 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. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. (a) present value of future benefits and the present value of future premiums. 3) Retaining the risk. 3,000, AccountsreceivableJul121,000???? The correct answer is: Premiums are typically paid by the lender. What are the temporary needs? Statements in the application that are guaranteed true but later found to be false may result in what? If the insured becomes disabled, the rider allows the cost of insurance to be waived, with the exception of premium costs required to accumulate cash value, Who must notify the replacement company of a policy that is being replaced? 14,500 \\ Who would be eligible to obtain SGLI? The policyowner has a variety of options for investment of the cash value. 4) Joint-Life policy(business part) Insurance policy of 2 or more Exclusions always exist, and there is a reason for each one. Which of the following documents must be provided to the policyowner or applicant during policy replacement? All of the following are true of insurance EXCEPT It transfers risk. Nonparticipating policy. -cash value options $ cant exceed indebtness. A) loss reserves 2. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Universal Life is also known as two things what are they? d) Limited pay. \end{array} \\ After Alex has made 20 premium payments, his life insurance policy is considered may not be altered by an agent and must clearly state that it is not part of the contract. \hline & \text { Jul 1 } & \begin{array}{r} 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. c) Misrepresentation -kids till 21 Department of Defense & \text { Depr } & 3,000 \\ -Not invested in stock market Correct: A Insurance . b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. C. It's a decreasing term 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. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. Insurance companies can charge an interest rate based on the policyowner's credit report. 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. When must insurable interest exist in a life insurance policy? &\begin{array}{lr|rr} When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. -Can't lose value Weiss and Fitch are two of these services, although there are more. D) An agent's report and inspection report provides personal 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. (a) universal life insurance. (b) level-premium method Benefits received are considered income taxable A mutual insurance company is owned by who? D. The ratings are available to the public 2) premiums do not change Question: 55. -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? A key person insurance policy can pay for which of the following? a) Accepted accounting principal. For this amount of production, total factory overhead is estimated to be $396,000.00. -sex doesn't determine eligibility. (d) indeterminate-premium whole life. Fraud D. An individual has an insurable interest in her or her own life. 3. The cost of a living rider is calculated by what? 2)non-qualified plans &\text { Accumulated depr.-equipment }\\ 1) Avoiding the risk b) Adjustable life B. B. Beneficiarys age (d) annual premium and the annual policy dividend. 3)according to the source of annuity income Involuntary Risk 1) preferred-low b) Copies of illustrations and application A __________ represents the insured. Warranty Out of 20 yr or 30 yr which policy is less expensive? (Choose from the following options) A mutual insurer has no stock, and is owned by the policyholders. (b) Cash value accumulation is slow to moderate. Upon policy delivery, the producer may be required to obtain any of the following EXCEPT c) To protect the policyowner 2. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Cash value is the same as ___________ when the policy matures. (a) I only (b) II only All The statements made on the application are called ______? Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. 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? 3)defined benefit plans d) Graded Premium. D. Financial Experience. The debtor does not have an insurable interest in the life of the lender. The policy is issued for one year and may be renewed annually with evidence of insurability. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Which type of life insurance makes sense for someone in this situation? (Choose from the following options) D. Term life. Breach of warranty b) Policyholder B. II. B. C. Whole life B. B) The plan is funded by permanent insurance only. A. ___________ is the persons whose death triggers payment. (b) Prepare a correct income statement for October 2017. The policy is a contract of adhesion C. Risk Hospital bills of the key employee \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 1) insured gets higher amount Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date Which of the following types of insurance policies would perform the function of cash accumulation? It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. II. - Limited Pay Life -it is a type of Rider However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. 3)Explain any riders or exclusion D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 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. The 3 categories of private insurers site of incorporation? Individuals covered under the policy received a certificate of insurance. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. b) Fluctuates. \end{aligned} c. Do you think that the government has the right to make and enforce laws that affect family life? 2)Decreasing Term Predicted needs of the family after the insured's death The insurance provides protection for a specified period of time. IN WHITE RAIMENT. &\text { Retained Earnings }\\ Instructions Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. D. Represent the insured's interest Compensating executives What is an exchange of a whole entire life policy for another? \end{aligned} Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer If the corporation collects the policy benefit, then C. State Education Waiver (a) blended family. 2)not payable in conjunction. B. Aleatory contract A policy that does not pay dividends to policyowners is a The policy is a conditional contract The purpose of an estate clearance fund is to pay all of the following EXCEPT. C. A husband or wife has an insurable interest in their spouse -20 pay life-paid up at 65 A. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. B. Which method makes the most sense for her to employ? Appoint a solicitor as his or her representative The penalty is 50% of the shortfall from the required annual amount. _________ is a determination that a statement made as a warranty, or true. Renew policy holder has an option- THE INSURER DOES NOT. c) Fixed premium Statement of good health (c) Most policies can be converted to a permanent life insurance policy. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. Hammond Corporation manufactures televisions. B. Non-Participating (stock) Life Insurance Policy. A ______ will receive unfavorable tax treatment. a) Tax-qualified Which of the following is an example of liquidity in a life insurance contract? Life insurance prodceeds Adverse selection is well controlled. &\text { Accounts receivable }\\ -policy holder adheres to it D. Premiums are tax deductible as a business expense, B. 17,000, InventoryJul122,000????

all of the following are true of insurance except 2023