4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. A mutual insurance company does not have what? B. (b) face amount of the policy and the total premiums that have been paid. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. 3) Ordinary. D) Obtaining a bachelor's degree. 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. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. With a little work, an unused office area could be converted to a rental room. Non-Participating (stock) Life Insurance Policy. -Not a true insurance company D. Viatical settlement. The shifting of risk of loss to a larger homogeneous group is known as what? Which is generally true regarding insureds who have been classified as preferred risks? The policyowner can add to a policy's cash value at any time subject to policy guidelines. -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? The applicant has been shown to be a poor personal credit risk. d) 15 years. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? (Medic Information Bureau)? b. Jul3119,500\begin{aligned} Statements in the application that are guaranteed true but later found to be false may result in what? Why do most states have a waiting period for couples applying for marriage licenses? D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". 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? B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Weiss and Fitch are two of these services, although there are more. 2)face amount is set After insurer makes an offer, what must the applicant do? (c) face amount of the policy and the legal reserve. \hline & \text { Jul 31 } & 19,500 Benefits received are considered income taxable d) Decreases annually. What is NOT invested in the stock market but pays you interest? 3. c) Increases annually. D. Aleatory contract c) Disclosure rule 1) cash value earns interest B. Misrepresentation e. The total of costs recorded on all sales invoices for the month is$654,052.00. Accelerated Living Benefit/Death Benefit is what type of rider? d) Fiscal responsibility. Medical exams provide information on current health. 2)Foreign Insurer A) They must be given to all Life insurance applicants. Yes, all T-mobile insurance plans cover water damage. 2)collateral assignment-some or only one right assigned. A. The primary purpose of buying an annuity is? a) A retail clerk. DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. C. Domestic -and the right to vote. D) Claims result from losses by a peril insured against in an insurance policy. Which of the following statements concerning buy-sell agreements is true? 1)Level A. 1) Avoiding the risk 10 year level term All of the following statements about the settlement of a claim are true EXCEPT. The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? The ___________ controls all rights of the contract. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? What are the two options in death benefit options? It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. the application is used at the primary source of info. 1) preferred-low An insured owns a life insurance policy. -it is a type of Rider and is NOT a party to the contract. 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 3,000, AccountsreceivableJul121,000???? Receipt There is a limit for a withdrawal and the insurer charges a fee. -Voting. Life insurance prodceeds Their premiums are lower Members are assessed to fund the corporation. 2)Legal Purpose (d) paid-up. She meets the definition of total disability under Social Security. A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} c) An agent offers tickets to a baseball game as an inducement to buy insurance. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. 3)Explain any riders or exclusion C. Social Security works exactly same as private insurance. These individuals qualify for lower premiums than those in the other categories. C. Waiver The Terrorism Risk Insurance Program is administered by which of the following Federal entities? Which of the following statements about limited-payment life insurance is true? Any gain in the policy's cash value is . Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. D. group credit insurance must have a suicide clause . A. Beneficiary's age \end{aligned} Which nonforfeiture option provides coverage for the longest period of time? Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. 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. Warranty D. Alien \end{array} 4. A key person insurance policy can pay for which of the following? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. b) Coverage ends and the policy cannot be reinstated. Predicted needs of the family after the insured's death c) Counselor B. Marital Status It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. 5)Survivorship Life Policy (policy holder pays themselves). D. The face amount remains the same throughout the life of the policy. The remaining amounts should be charged to selling and administrative activities. C. Independent rating services evaluate and rate the financial ability of insurance companies Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. The issuance of a binder is the result of the ___________________ of an offer. All of the following are business uses of life insurance EXCEPT c) The inspection report Their premiums are lower The employer is the owner . _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? -Can't lose value Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. True or False: Under the Financial Responsibility Law, you are required After examining other manufacturing cost data, you have acquired additional information as follows. Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. 3)Minors. Causes of the 2000s United States housing bubble - Wikipedia Which of the following documents must be provided to the policyowner or applicant during policy replacement? What is the difference between renewable policy holder & Insurer? d) 50% tax on the amount not distributed as required. ADD( Accidental death and dismemberment??? What is used for the underwriting department to determine insurability? What are the temporary needs? &\text { Retained Earnings }\\ If company pays dividends, then they are a? 2. (b) Most policies can be renewed without evidence of insurability. c. Do you think that the government has the right to make and enforce laws that affect family life? C) An insurance contract must contain a copy of the original application. -Follows all conditions of contract & pays premium, -insurer says how policy works Solved All of the following statements about universal life - Chegg B. Beneficiarys age a) Juvenile Life -tax free accumulation of borrowing. -assignor=assignee - Limited Pay Life d) Loss. -policy holder adheres to it b) Human life value approach A peril b) Copies of illustrations and application -A Mec will receive unfavorable tax treatment A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. 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. \textbf{For the Month Ended October 31, 2017}\\ (b) Prepare a correct income statement for October 2017. b) Failure to promptly settle a claim when liability has been clearly established Predicted needs of the family after the insured's death The correct answer is: The premium decreases to zero by the end of the policy period. a) Because the insured is currently not a drug user, his policy will not be affected. What happens when a policy is surrendered for its cash value? Steven prints a pamphlet to advertise his life insurance business. (c) conversion provision A false statement in the application for insurance is_____________. Cash value is the same as ___________ when the policy matures. &\text { Accounts receivable }\\ Individuals covered under the policy received a certificate of insurance. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. Jul313,000\begin{aligned} Credit life 1. C. Buy-Sell agreements are normally funded with a life insurance policy A. If someone dies within the Grace period, what happens? -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded 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. -If the insured dies, the policy payed out the PRINCIPAL SUM 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. -usually mutual fund security A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? 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? b) Hazard C. Funding business continuation agreements An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. Healthcare in the United States - Wikipedia c) Coverage ends but the policy can be reinstated at any time. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. -receiving dividends(when declared) \hline \text { Jul 1 } & 22,000 \\ B. (1), In Universal life, what options can the policy owner have with the premium payments to do? 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. -guarantee a stream of income to the person purchasing it known as the annuitant.
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