Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date A producer wishing to appeal the final order of the commissioner would appeal to???? Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. 2)no cash-value
A key person insurance policy can pay for which of the following? c) Misrepresentation Insurance producers must adhere to the concept of suitability by ensuring that, to the best of their belief, the purchase, sale or exchange of a policy is in the best interest of the insured. b) State attorney general A. A surplus lines broker deals with direct writing companies only In a car accident dealing with ADB who covers the passenger? ~~~\text{Depreciation on factory equipment}&31,000\\ c) 10 years. 3)Alien Insurer. (c) They decrease at a constant rate. Insurance is considered a transfer of risk. A __________ represents the insured. 2)Straight Life
AccountsreceivableJul1Jul3121,000???? d) Paid-up option. c. Premiums may be raised at renewal d. Group term insurance may cover the . Yes, all T-mobile insurance plans cover water damage. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. -But pays you interest, 1)Fixed annuity
a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . d) 15 years. Which type of risk involves the possibility of loss or gain? C. Solicit applications on the insurer's behalf This form of life insurance has fixed premiums and the cash value is not guaranteed. After everything is signed & premium is collected What does the agent give to the policy holder? It is most appropriate when an insured needs lifetime protection. -immediately considered fully paid up
~~~\text{Utilities expense}&12,000\\ A conditional or binding receipt is given when an applicant does what? b) Cost of living rider. B. Beneficiarys age -They provide coverage for risks that other insurers normally would not provide. Which is generally true regarding insureds who have been classified as preferred risks? b. Correct: C. Unilateral contract. 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. &\begin{array}{lr|rr} C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. Jul313,000\begin{aligned} B. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? & \text{ ???? } 1)premium payment
Which of the following would provide an underwriter with information concerning an applicant's health history? After Alex has made 20 premium payments, his life insurance policy is considered These individuals qualify for lower premiums than those in the other categories. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. \end{array} a) The policy can be converted to term coverage. This method of estimating . a) Accepted accounting principal. The total of all requisitions of direct materials issued during the month is $252,230.00. A life insurance policy is exchanged for an annuity. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. 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 ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} (c) PV of the family's share of a deceased breadwinner's future earnings. C) An insurance contract must contain a copy of the original application. Occupation -the insurer sets the terms of the contract and the applicant must adhere to them. -cash value options
the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. This is called. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? All of the following are characteristics of group life insurance EXCEPT. Insurance transfers risk but it does not__________ risk. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. c) Accelerated benefit rider. IRS classification of a policy that is overfunded? b. cheating. A securities license. Life expectancy has increased in the U.S. over the last century. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. ~~~\text{Depreciation on sales equipment}&45,000\\ c) Term life a) Remains level. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. Premiums are not tax deductible as a business expense The applicants(policy owner)
The storage of flammables in a fireproof container. . The applicant has been shown to be a poor personal credit risk. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. Conviction of a felony involving moral turpitude. Difference between Universal Life Insurance and Whole Life Insurance? An Insurance Broker is responsible for what? -cash value can lose value. 3) Increasing Term. 1)Whole Life
c) Smaller. Concerning insurance, the definition of a fiduciary is \text { Type II } & \$ 20 & \$ 30 & \$ 40 Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). c. thoughts of harming a neighbor (c) expired. C. A husband or wife has an insurable interest in their spouse What insurance concept is associated with the names Weiss and Fitch? 2)Family Income(decreasing term-policy)
\text{Less: Operating expenses}\\ 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? B. good health
What type of insurer has no capital stock? Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. (a) They increase at an increasing rate. Their premiums are lower Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? Correct: C. Concealment, A. d) The insurer will sue the insured for committing fraud. Question: 55. (d) indeterminate-premium whole life. The insurance provides protection for a specified period of time. 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. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? Estimated direct labor costs for next year are$440,000.00. ? O b. All of the following would be considered to be rebating EXCEPT C. The benefit is received as taxable income \end{array} 1) cash value earns interest
b) Larger. 1) mentally incompetent persons
A. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . 3)they provide insurance to members. A. 2)face amount is set
d) Producer. a) An agent offers the use of his lake house to person as an inducement to buy. still matures at age 100, -premium is paid off at one time
. Insurance is not designed to cover _____________ losses. 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? 2)standard-average
b. d) All of the above. ? Warranty Statements in the application that are guaranteed true but later found to be false may result in what? Most agents try to collect the initial premium for submission with the application. What adds coverage and modifies coverage? c) The inspection report 1) Avoiding the risk
The ___________ controls all rights of the contract. don't pick binding receipt at all on test. Who would be eligible to obtain SGLI? 3)certified public accountants, Is insurance that is provided by the Federal or State government
What else must he include? insured is always the borrower & the beneficiary=lender
There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. \end{array} b) The policy will not be affected. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. \end{aligned} ? (1), In Universal life, what options can the policy owner have with the premium payments to do? D) Obtaining a bachelor's degree. The designation will be void/. ___________ is the persons whose death triggers payment. What is the term for a cause of loss, such as the theft of a car? All of the following statements are TRUE concerning Debtor Groups EXCEPT D. Premiums paid are deductible as a business expense. 2)premium gets lower. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. The companys president is concerned about the accuracy of the income statement. 1)physical exam
How do premiums for yearly renewable term insurance change as an insured gets older? D. Concealment Renew policy holder has an option- THE INSURER DOES NOT. An__________ represents the insurer. The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. a) More active. 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. What is the primary source of info for the underwriting department to determine insurability? -the premiums are paid for a limited time only. B. -below market interest rates on borrowing
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. The issuance of a _________ is the result of the acceptance of an offer. (D The employer is the owner, payor and beneficiary of the policy. 3)Minors. Newborns after how many days become covered in a child rider? Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. D) Obtaining a bachelor's degree. The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. Insurance is designed to cover both intentional and unintentional losses. Rates The person who receives the benefit when insured dies. The cash value of availability to the policyowner Out of 20 yr or 30 yr which policy is less expensive? Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Which nonforfeiture option provides coverage for the longest period of time? 2) premiums do not change
c) Coverage ends but the policy can be reinstated at any time. The remaining amounts should be charged to selling and administrative activities. 3)Consideration
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. B. Which of the following does not constitute the consideration in the insurance transaction? When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? C. Medical Background Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Study with Quizlet and memorize flashcards containing terms like All of the following are true regarding group term life insurance, EXCEPT: a. AKA-payout phase. C. A surplus lines broker deals with direct writing companies only CashJul1Jul315,500???? (d) annual premium and the annual policy dividend. I. Cash values are available in whole life policies. ~~~\text{Indirect labor cost}&28,000\\ An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? What constitutes the acceptance of an offer? A. B. this insurance is often written in connection with automobile loans. ? After insurer makes an offer, what must the applicant do? C. State Education Waiver C. Risk Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. 2)interest sensitive
c. Which of the following about yearly renewable term insurance is true? Nonparticipating policy. &\begin{array}{cr|} 2) standard risk
2)not payable in conjunction. How has the Aswan High Dam affected the lives of Egyptians? The policy is issued for one year and may be renewed annually with evidence of insurability. Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. c) Extended term d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. d) Loss. A mutual insurance company is owned by who? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. C. Consideration (a) matured. What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurable? B. A key person insurance policy will pay for costs of running the business and replacing the employee. B. ______________ is defined as restoring the insured to the same financial condition as before the loss. &\text { Accounts receivable }\\ Something of value is a __________________. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. 3)substandard risk. Tax-qualified annuities are subject to IRA maximum contribution limits. The County is administered by a five-member Board of Supervisors who are elected for four-year terms Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. &\text { Inventory }\\ b. it frequently includes coverage for losses due to casualty and theft. (d) They remain level. \end{aligned} Waiver of Premium- What happens to the insurer? Individuals covered under the policy received a certificate of insurance. (b) tax-free exchange provision Only the MIB will provide information about an applicant's medical history. (b) Any withdrawal of cash value reduces the death benefit. In order for the contract or policy to be valid or legal? Life insurance proceeds A contract between insurer and policy holder. What happens when a policy is surrendered for its cash value? &\begin{array}{lr|lr} In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. &\text { Rental Class }\\ a) The amount of insurance on the life of any debtor may exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. They become permanently disabled
-greater potential to grow the cash value but there is no guarantee
~~~\text{Raw materials purchases}&\$264,000\\ 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. Term life insurance provides the largest amount of coverage for the lowest amount of premium. c) National Association of Insurance Commissioners An Insurance broker is responsible for what? See Answer. 1)Level
a) Small employers Can a misrepresentation render the contract void if the misrepresentation is material to the risk? Correct: A. \text{ ???? } b. 3)premium is collected
The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. A. \hline && \text { Jul 31 } & 111,000 Annual income Which of the following statements about universal life insurance is true? \end{aligned} -The insurance dept. 1. (b) They increase at a decreasing rate. A. D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. 4. B. Twisting (c) The number of times the coverage can be renewed is limited. What type of policy does the insured most likely have? a) Because the insured is currently not a drug user, his policy will not be affected. C. A surplus lines broker accepts business only from non- resident agents b) Fiduciary responsibility. (3), 1)bank trust officer
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? C. The death benefit paid to the beneficiary A. 2. Liquidity in life insurance refers to availability of cash to the insured through cash values. Reinsurer Assuming company. The replacing company notifies the replacement company. Fraud Address of his principal office b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). 4. 1. Correct: A.A peril. B. Health insurance decreases your healthcare costs. C. Department of State a) Juvenile Life d) Living need rider. Height Weight and Health conditions. ~~~\text{Advertising expense}&90,000\\ D. Funding against general company financial loss The penalty is 50% of the shortfall from the required annual amount. Round Trees management makes a forecast of the demand by rental class for each night in the future. The insurer that is transferring the risk to another company is called the ____________ __________. \hline \text { Jul 1 } & 22,000 \\ 3. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? All of the following are required signatures on a life insurance application EXCEPT. Which term describes the probability of a loss? It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Benefits received are considered income taxable Estate Creation B. c. Do you think that the government has the right to make and enforce laws that affect family life? All of the following statements about the settlement of a claim are true EXCEPT. d) Tax-deductible. (a) renewal provision 3. 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???? 3)semi-annual
____________ insurer is not a type of insurer. 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? EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} Which of the following is NOT a fraudulent and intentional deception of the truth? The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 5)Survivorship Life Policy (policy holder pays themselves). B. The correct answer is: Premiums are typically paid by the lender. D. Effect of inflation on income over time. Their premiums are lower C. Payment of premium (b) reduced. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. Dividends received by policyholders of a mutual insurer are not taxable. (c) both I and II All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. Which of the following is NOT an example of a business use of Life Insurance? \end{array} C. Tax Status C. Domestic An Applicant inaccurately representing information on the application is guilty of: A. d) Buyer's Guide. Coverage is available in $50,000 increments up to the maximum of $400,000. d) Graded Premium. Costs of training a replacement To sell variable life insurance policies, an agent must receive all of the following EXCEPT c) Helping insureds to file claims b. &\text { Accounts payable }\\ a) Withdrawals are not taxable. The 7 paytest is used to determine if a policy is a _______? Which of the following best illustrates a