There is a limit for a withdrawal and the insurer charges a fee. D. Speculative Risk Its controller resigned in October 2017. (d) Premiums increase at an increasing rate upon renewal. C) common stock 4. 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 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? C) the proposed insured. A. The debtor does not have an insurable interest in the life of the lender. What must exist at the time of the application? ~~~\text{Depreciation on sales equipment}&45,000\\ A. signed waiver of premium -then picks a contract. (c) The number of times the coverage can be renewed is limited. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. b) Larger. Which kind of agent enters into agreements with more than one insurer? 4)explain policy & provisions All of the other statements are true. b) A producer who handles insurer funds in a trust capacity. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. d) Living need rider. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ A. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ In this case, the applicant will most likely need to fill out a Statement of Good Health. B. Nonadmitted D. Gender. All of the following statements about ordinary life insurance are true EXCEPT. c) Premium accountability. Explain your answer. -has cash value invested in the stock market _________ is a determination that a statement made as a warranty, or true. There are 2 parties of the contract- what are they? d) Graded Premium. All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. (a) blended family. B. Avoidance (d) indeterminate-premium whole life. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. Which of the following is NOT an allowable 1035 exchange? Which nonforfeiture option provides coverage for the longest period of time? (c) They decrease at a constant rate. 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 . 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? Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Height Weight and Health conditions. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. An insured becomes disabled at age 22 and can no longer work. (d) annual premium and the annual policy dividend. d. Funding against financial loss caused by the death of a key employee A FINRA registration. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ B. 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. Round Tree has 100 Type I rooms and 120 Type II rooms. Dividends received by policyholders of a mutual insurer are not taxable. The cost of insurance protection is referred to as what? b) Policyholder 1) Avoiding the risk Correct: C. Unilateral contract. 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} \hline & \text { Jul 1 } & \begin{array}{r} An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. Predicted needs of the family after the insured's death are used in the needs approach. -the insurer sets the terms of the contract and the applicant must adhere to them. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? ? Which of the following best illustrates a An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. All of the following statements about the characteristics of Social Security are true EXCEPT A. Term life insurance provides the largest amount of coverage for the lowest amount of premium. Prepare a pie chart of on-time delivery performance for last month. When applicant is not the insured ______________ must exist. A Contract that binds only one party to future performance, is a (n): A. C. A surplus lines broker accepts business only from non- resident agents b) Hazard C. Concealment (6). c) Smaller. What are the (5) Factors considered with combination policies Who and What are they? A. Foregin 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. C. State Education Waiver ~~~\text{Raw materials purchases}&\$264,000\\ B. Buy-Sell Agreements pay in the event of a medical emergency Type I rooms do not have wireless Internet access and are not available for the Business rental class. Correct: B. 2)quarterly also known as acceptance. C) They must contain a warning that actual results may vary. 2)collateral assignment-some or only one right assigned. b) Adjustable life ADD( Accidental death and dismemberment??? the application is used at the primary source of info. Question: 55. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 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. What insurance concept is associated with the names Weiss and Fitch? See Answer. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. c. continuous premium whole life Life expectancy has increased in the U.S. over the last century. a) Agent's report 1) Family Maintenance(breadwinner) Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. 2)Straight Life B. (b) Prepare a correct income statement for October 2017. c. It is the failure to use ordinary care. Prior to October 2017, the company had been profitable every month. 4)defined contribution plans. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. The benefit is subject to the exclusionary rule Which of the following statements is NOT true concering insurable interest as it applies to life insurance? (a) I only (b) II only An insured is driving her automobile and strikes a large pothole that . 1) cash value earns interest Pure risk Copyright 2009-2022 Tests.com LLC - All Rights Reserved. c. Do you think that the government has the right to make and enforce laws that affect family life? D. Unilateral Contract Contract or form of ownership is a ______________? Appoint a solicitor as his or her representative Insurance companies can charge an interest rate based on the policyowner's credit report. d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. Steven prints a pamphlet to advertise his life insurance business. A. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. C. Waiver of Estoppel What is NOT invested in the stock market but pays you interest? 2)standard-average The failure to disclose known facts is what? B. Twisting C. Buy-Sell agreements are normally funded with a life insurance policy Members are assessed to fund the corporation. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. &\begin{array}{lr|rr} InventoryJul1Jul3122,000???? *Both not taxable. She meets the definition of total disability under Social Security. The cost of a living rider is calculated by what? 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 applicant must always initial the change Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. a) Year only. What are some of the questions asked on the application to determine the premium and risk classification of the insured? What characteristic must an annuity have if it is used to accumulate funds in an IRA? d) Buyer's Guide. The parties in the insurance contract consist of whom? Certificate holders may convert coverage to an individual policy without evidence of insurability. What is the primary source of info used to determine insurability by the underwriting department? It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. C. Loss of personal income Can a misrepresentation render the contract void if the misrepresentation is material to the risk? 3. c) Whole Life The correct answer is: The premium decreases to zero by the end of the policy period. Limited-Pay Life & Single-Premium Policies? Economics questions and answers. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} D. Funding against general company financial loss. _______ pays dividends to the stock holder. 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. (must exist at the time of application). 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. \hline \text { Jul 1 } & \begin{array}{r} Which of the following statements is not correct regarding rates and premiums? 1) preferred-low Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. What is an exchange of a whole entire life policy for another? A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. The policy is issued for one year and may be renewed annually with evidence of insurability. Cash values are available in whole life policies. Universal Life is also known as two things what are they? B. b. C. Social Security works exactly same as private insurance. when the applicant/owner is not the insured-3rd party The insurance provides protection for a specified period of time. -Can't lose value 1)temporary Which risk management type is shifting the risk of loss to a larger homogeneous group? An insurer that was incorporated in a different state that it is doing business in. The 7 paytest is used to determine if a policy is a _______? C. Whole life (b) reduced. 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. II. Newborns after how many days become covered in a child rider? Past-due interest on a policy loan is added to the total debt. Claim is still paid with an adjustment to the benefits. Which is generally true regarding insureds who have been classified as preferred risks? It is most appropriate when an insured needs lifetime protection. Term-Life policy has what 3 characteristics? B) Underwriters. Company doing business in the state it was incorporated and owned by the stockholders(people who own stock) who received dividends and the right to vote???? c) Extended term d) The insurer will sue the insured for committing fraud. It is a type of tort. 4)settlement options, 1)stand alone policy D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. The total of all requisitions of indirect materials issued during the month is$20,170.00. The correct answer is: Maggie's Piano Studio with 1 employee. B. In this particular instance the applicant did not commit intentional fraud. Foreign. Life insurance proceeds c) Disclosure rule Which of the following would provide an underwriter with information concerning an applicant's health history?
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