Hammond Corporation manufactures televisions. Life Insurance Flashcards - Cram.com What are the temporary needs? -car accident not in conjunction with an illness 2. 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. Which nonforfeiture option provides coverage for the longest period of time? Which of the families below is likely to have the least need for a large life insurance policy? This is called. 90-180 days. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. (d) sandwiched family. -guarantee a stream of income to the person purchasing it known as the annuitant. \text { Type I } & \$ 30 & \$ 35 & - \\ What is the MIB? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. What contract characteristic does this describe? &\text { Cash }\\ Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Level-increasing face value. 5)Survivorship Life Policy (policy holder pays themselves). Which of the following about a VUL insurance policy is (are) true? (a) renewal provision A whole life insurance policy is exchanged for a Universal life insurance policy. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. D. Premiums paid are deductible as a business expense. The 3 categories of private insurers site of incorporation? All of the following characterize term life insurance, EXCEPT: Select one: a. A. If there Is a risk of financial loss then there is a what? Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. D. Accident B. Empire Company is a manufacturer of smart phones. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. 1)premium payment Group life insurance is most often issued as guaranteed annual renewable term. The face amount decreases as the amount owed on the mortgage decreases. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. a) The policy can be converted to term coverage. Which of the following would provide an underwriter with information concerning an applicant's health history? In addition, they provide financial support for Tom's aged father and Nancy's aged mother. d) Contingent. All of the following are true of key person insurance EXCEPT With a little work, an unused office area could be converted to a rental room. 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? Whats the "take it or leave it contract"? C. A surplus lines broker deals with direct writing companies only -its a rider -greater potential to grow the cash value but there is no guarantee 1) Avoiding the risk B. &\text { Rental Class }\\ A. 5)coverage begins II. B. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. Mutual life policy. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. B. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. O d. d) Producer. ? What are the 3 characteristics of a Mutual Insurance Company? AKA-payout phase. b) 10% for early withdrawal $ cant exceed indebtness. An insured owns a life insurance policy. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Arrest History. 2)can be sold as a rider to a whole-life policy. All of the following statements are true of liability insurance, EXCEPT -Staged intervals -paying for certain time and stop. D. Breach of warranty Which of the following about the use of ordinary life insurance is true? Which of the following is NOT an allowable 1035 exchange? Insurance is an important tool to manage risks, but often unavailable to poorer households. All of the following statements about term insurance are true EXCEPT. (c) PV of the family's share of a deceased breadwinner's future earnings. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become Round Trees management makes a forecast of the demand by rental class for each night in the future. 1. Which of the following statements about limited-payment life insurance is true? c) Misrepresentation still matures at age 100, -premium is paid off at one time B. Avoidance A company doing business in the same state it was incorporated in and owned by the policy holders. In order for the contract or policy to be valid or legal? ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ C. Hazards b. Applicant pays premium to make agreement. (Choose from the following options) The insurance provides protection for a specified period of time. database of previously life and health insurance applications. Which type of life insurance makes sense for someone in this situation? c) Low-income individuals and families Rating codes are assigned to show financial strength or weakness of each company rated C) the proposed insured. Life expectancy has increased in the U.S. over the last century. C. It's a decreasing term insurance. A. 3)Family Policy(Limited but all fam members paid) DONT PICK IT!!!!!! C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. Which term describes the probability of a loss? b) Promptly forwarding premiums to the insurance company B) The parent is responsible for the premium. 2)Legal Purpose Who appoints the state insurance regulator in many states? 2) premiums do not change Which type of risk involves the possibility of loss or gain? ~~~\text{Indirect labor cost}&28,000\\ What is the purpose of a suicide provision within a life insurance policy? ____________ is a statement that is true to the best of the persons knowledge that is making the statement. The policy is a contract of adhesion D. Speculative Risk Foreign. c) Premium accountability. After Alex has made 20 premium payments, his life insurance policy is considered Which is generally true regarding insureds who have been classified as preferred risks? (b) Cash value accumulation is slow to moderate. The minimum FREE LOOK period is how many days? C. Concealment On DUE DATE. The designation will be void/. Under Section I, homeowners insurance must include d. falsely believing that a spouse has been Acceptance 1) preferred risk Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. (c) face amount of the policy and the legal reserve. A. C. The insurer is always required to pay the . d) An agent misrepresents policy benefits to convince a policyowner to replace policies. 1) Family Maintenance(breadwinner) Conviction of a felony involving moral turpitude. Nonparticipating policy. 2)attorneys b. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. Steven prints a pamphlet to advertise his life insurance business. A. (a) I only An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past b. 1) coverage is permanent Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . Department of Defense C. Countersign insurance contracts Which of the following documents must be provided to the policyowner or applicant during policy replacement? All of the following statements are true regarding mortgage protection insurance EXCEPT. 4)defined contribution plans. 4. Insurance is considered a transfer of risk. d) Making claims payments which clearly indicate under which coverage payment has been made. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? When will coverage begin? C. Premiums are determined by age sex and occupation of each individuals certificate holder. A life insurance license. ~~~\text{Rent on factory facilities}&60,000\\ Funding against financial loss caused by the death of a key employee Correct: D. Concealment. c) Disclosure rule the application is used at the primary source of info. Value-added tax - Wikipedia When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? The policyowner has a variety of options for investment of the cash value. \end{array} B. ch 7 Flashcards | Quizlet A life insurance policy is exchanged for an annuity. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. -the insurer sets the terms of the contract and the applicant must adhere to them. b. it frequently includes coverage for losses due to casualty and theft. 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. a) The policyholders or stockowners of the company Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. c) Copy of the original application D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. 4)explain policy & provisions 2)the face amount B. c) Extended term ________________ are the person who receives benefits payable upon death. Unit 27 Flashcards by Lauren Pulido | Brainscape Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. Only one party is giving a legally enforceable promise- A one-sided contract is what? A surplus lines broker accepts business only from non- resident agents c) Conditional A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. B. 2)premium gets lower. c) Coverage ends but the policy can be reinstated at any time. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? (b) face amount of the policy and the total premiums that have been paid. \hline & \text { Jul 31 } & 58,000 What is a statement in the application guaranteed true in all respects? (b) The face amount of the policy is paid if the insured lives to age 65. Chapter 11 - Life Insurance Flashcards | Quizlet Certificate holders may convert coverage to an individual policy without evidence of insurability. c. thoughts of harming a neighbor -it is a type of Rider Claim is still paid with an adjustment to the benefits. 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. b) Hazard It is a type of tort. 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. c. It is the failure to use ordinary care. \end{array} c) 10 years. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Chapter 3.2 - Subjecto.com The cost of insurance protection is referred to as what? 1) cash value earns interest d) Blackout approach. Pure risk 2)face amount is set Compensating executives -Follows all conditions of contract & pays premium, -insurer says how policy works B. 3) type of plan they applied for. (2), The current market will influence the cash value The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} All of the following statements about the settlement of a claim are true EXCEPT. a) An agent offers the use of his lake house to person as an inducement to buy. Correct: B. D. They can decide when to pay their monthly premiums. (3), WHat is the difference between universal and whole life policies? 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. b. D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. A key person insurance policy can pay for which of the following? D. Delivery receipt. Flashcards - WA Life Law Practice Exam - FreezingBlue b. Which method makes the most sense for her to employ? What is the primary source of info for the underwriting department to determine insurability? The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Accidental Death Benefit (D The employer is the owner, payor and beneficiary of the policy. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? compulsion?