all of the following are true of insurance except

All of the following characterize term life insurance, EXCEPT: Select one: a. ~~~\text{Utilities expense}&12,000\\ The applicant accepts the invitation by paying the ___________. A. Involuntary Risk insurable interest must exist. The designation will be void/. An annuity is exchanged for another annuity. (c) conversion provision D) When replacement is involved, a producer must perform the following duties: sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. It is a type of tort. They become permanently disabled It is the specific cause of loss. D. Solicit applications on insurer's behalf The policy's cash value grows as the investments grow. -cash value can lose value. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. b) Cost of living rider. Originating policy Six Reasons the Loss is Excluded - MyNewMarkets.com Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. Annually renewable term policies provide a level death benefit for a premium that It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. Correct: B. a) Because the insured is currently not a drug user, his policy will not be affected. saalt menstrual disc how to use - evcc-estheticstraining.com 2. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. AccountspayableJul1Jul3114,500??? The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . Are insurance company underwriters allowed to discriminate? Non-Participating (stock) Life Insurance Policy. All of the other statements are true. IRS classification of a policy that is overfunded? C. Countersign insurance contracts Which nonforfeiture option provides coverage for the longest period of time? She has limited income and significant life insurance needs. II. d) Accumulations are tax deferred. Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. According to the entire contract provision, what document must be made part of the insurance policy? Rating codes are assigned to show financial strength or weakness of each company rated \underline{\hspace{40pt}}. \hline && \text { Jul 31 } & 111,000 Rates. An agent has authority to do all of the following, except: A. Countersign insurance contracts &\begin{array}{lr|rr} What happens when there is a Misstatement of age or sex? D. Delivery receipt. (c) both I & II (d) neither I or II, Diane is a single parent. What characteristic must an annuity have if it is used to accumulate funds in an IRA? The CAS number shown in an entry is typically . a) Year only. 2)collateral assignment-some or only one right assigned. 1) Conditional Reciept d) Fair Credit Reporting Act. The penalty is 50% of the shortfall from the required annual amount. Investors become more risk averse. D. Gender. Joe, Larry, and Curly own a small business. 4. Where does group-life insurance come from? What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? B. c) Conditional Reinsurer Assuming company. 1)cont. c) Coverage ends but the policy can be reinstated at any time. \end{array} C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. d. falsely believing that a spouse has been The ___________ controls all rights of the contract. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Payor benefit/Clause is always a _________. a) Remains level. Estate conservation B. Buy-Sell Agreements pay in the event of a medical emergency What does "liquidity" refer to in a life insurance policy? B. How much life insurance should Sam advise . Policyholders C. A surplus lines broker accepts business only from non- resident agents S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. 3) policy builds cash-value B. Correct: A. b) Copies of illustrations and application b) A producer who handles insurer funds in a trust capacity. A policy that does not pay dividends to policyowners is a Correct: B. exclusions: when the accident occurs within an illness,disease, or mental infirmity. D. Viatical settlement. b) Conditional receipt A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. What are (4) ways annuities are classified? has reached its final destination and can be paid out in full. What are the temporary needs? &\text { Cash }\\ Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? 2)attorneys All of the following are required signatures on a life insurance application EXCEPT. 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. The minimum FREE LOOK period is how many days? 2)non-qualified plans b) Promptly forwarding premiums to the insurance company Consumer report Accelerated Living Benefit/Accelerated Death Benefit? 1) a policyholder votes on the Board of Directors Question: All of the following statements about variable life insurance are true EXCEPT O a. 3)according to the source of annuity income D. Financial Experience. 1) cash value earns interest All of the following information about a customer must be used in determining annuity suitability EXCEPT A ______ will receive unfavorable tax treatment. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. B. Why do most states have a waiting period for couples applying for marriage licenses? A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . Who gets $$money when the policy holder dies? When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health B. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. The applicant has been shown to be a poor personal credit risk. All The statements made on the application are called ______? a) Offering additional coverage to clients the underwriting process is approved for: All of the following are true of negligence, except: - AZanswer Something of value is a __________________. This method of estimating . Limited-Pay Life & Single-Premium Policies? (c) PV of the family's share of a deceased breadwinner's future earnings. ____________ 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 example of a business use of Life Insurance? ~~~\text{Depreciation on sales equipment}&45,000\\ C. The insurer is always required to pay the . Which type of risk involves the possibility of loss or gain? 3)Minors. Their premiums are lower A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. -receiving dividends(when declared) (d) Most policies have a CV that is refunded when coverage ceases. 4)annual, Everytime you have a payment due. The death benefit varies according to investment experience. What are the two options in death benefit options? D. Speculative Risk a. Correct: C. Unilateral contract. The policy does not go into effect until the premium has been collected. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. After Alex has made 20 premium payments, his life insurance policy is considered Mutual life policy. (b) tax-free exchange provision C. Funding business continuation agreements Which of the following is NOT an allowable 1035 exchange? C. Loss of personal income . Correct: C. Concealment, A. Why?". To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. Jul3117,000\begin{aligned} A company doing business in the same state it was incorporated in and owned by the policy holders. True or False: Under the Financial Responsibility Law, you are required RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. D) They must be signed by both the Producer and the applicant. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). ? Which of the following statements about limited-payment life insurance is true? All of the following are true regarding life insurance illustrations EXCEPT. 4)decrease premium paying period. b) Fiduciary responsibility. 1. A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. Social Security is designed to provide a base of economic security B. After everything is signed & premium is collected What does the agent give to the policy holder? ~~~\text{Advertising expense}&90,000\\ \end{array} d) Tax-deductible. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. A. 2)FCRA(fair credit reporting act) checks MIB report. Insurance is an important tool to manage risks, but often unavailable to poorer households. Pro rata liability applies. B. \end{aligned} Term. ? Past-due interest on a policy loan is added to the total debt. d) Fiscal responsibility. Surplus lines broker deals with admitted carriers only If the insurance carried is less than required, the insurance may not cover the whole loss. To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. (a) renewal provision When does the grace period begin and how long is it? All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. 1) the premium amount -Prepays portion of face amount if diagnosed with terminal illness. What kind of penalty would the IRA owner pay? C. It's a decreasing term insurance. b. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. Which type of life insurance makes sense for someone in this situation? Level-increasing face value. C. Independent rating services evaluate and rate the financial ability of insurance companies If applicant is not the insured- then insureds signature is required 3)Consideration The storage of flammables in a fireproof container. 1. (c) The number of times the coverage can be renewed is limited. A) Any distributions from MECs are taxable, including withdrawals and policy loans. 2)Variable annuity C. Waiver 1. Correct: B. -pays an additional death benefit if the insured dies from an accident 1)increase cash value All of the following are common characteristics of this coverage EXCEPT c) Variable Premium Which of the following is a physical hazard? Cause of potential loss to property such as fire, windstorm, hail, flood, etc. 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. (4), 1)monthly Most policies can be renewed for additional periods without evidence of insurability. Which of the following types of insurance policies would perform the function of cash accumulation? Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. Exclusions always exist, and there is a reason for each one. Chapter 3 part 1 Flashcards | Quizlet b. All of the following statements about ordinary life insurance are true EXCEPT. a) Types of mutual companies All of the following statements are true of liability insurance, EXCEPT 4 All of the following statements about term insurance are true EXCEPT \hline \text { Jul 31 } & 3,000 B. c) The policy will be voided. All of the following statements about term insurance are trueEXCEPTa. 1)policy owner can increase/decrease/ or skip premium payments b) The agent's report 4. 1)Level D) Obtaining a bachelor's degree. Solved All of the following statements about universal life - Chegg Effects of climate change - Wikipedia \hline \text { Jul 1 } & 22,000 \\ A. Domestic Insurer (d) paid-up. Health insurance decreases your healthcare costs. Last year, the couple got divorced. What are two reasons that people deposit money in banks? D. Department of Treasury Beneficiaries are NOT required to sign the application unless they are also the owner. AKA-payout phase. C. Social Security works exactly same as private insurance. Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. B) Underwriters. 3)semi-annual 3)certified public accountants, Is insurance that is provided by the Federal or State government James purchased yearly renewable term insurance. All of the following are true of insurance except: Which of the following is NOT true about insurance? 2)Family Income(decreasing term-policy) ~~~\text{Rent on factory facilities}&60,000\\ c) National Association of Insurance Commissioners (receive dividends & the right to vote). (b) single-parent family. -kids till 21 -Can't lose value 1) Avoiding the risk The cost of insurance protection is referred to as what? may not be altered by an agent and must clearly state that it is not part of the contract. A Contract that binds only one party to future performance, is a (n): A. 3)mortality charge. Group Life Insurance Flashcards | Chegg.com -The insurer would pay the face amount of the policy minus the past due premium. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. Agents and producers must place business through an insurer with the lowest rated $ cant exceed indebtness. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Insurance is designed to cover both intentional and unintentional losses. C. Premiums are determined by age sex and occupation of each individuals certificate holder. 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 agent Government Relations: New Challenges and the Ongoing Erosion of good health D) Insurance covers intentional losses as well as unintentional. Rebating is an unfair trade practice and is regulated by law. D) the minor in a juvenile policy. 3) Ordinary. Difference between Universal Life Insurance and Whole Life Insurance? b. RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. Premiums are not tax deductible as a business expense. Benefits received are considered income taxable CPI (consumer price index) without evidence. 3)increase the length of coverage The insurer that is transferring the risk to another company is called the ____________ __________. d) The Medical Information Bureau. 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. \end{array} All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. d) Producer. The __________ branch of the state government influences public policy regarding insurance laws. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer A. 2)not payable in conjunction. 90-180 days. For example, a claim will be paid only is there has been a covered loss. ___________ is the persons whose death triggers payment. Get more out of your subscription* Access to over 100 million course-specific study resources \end{array} ~~~\text{Selling and administrative salaries}&75,000\\ A false statement in the application for insurance is_____________. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. B. Twisting the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. What is NOT invested in the stock market but pays you interest? B) the applicant. Correct: A.A peril. A surplus lines broker deals with direct writing companies only -The insurance dept. A) loss reserves 2. A. (d) indeterminate-premium whole life. 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. Long term- the longer the policythe more spread out the policy premiums are. A mutual insurance company does not have what? 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. C. Medical Background Which of the following statements about universal life insurance is true? c. Premiums may be raised at renewal d. Group term insurance may cover the . However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. Which of the following statements is NOT true concering insurable interest as it applies to life insurance? A. contract of adhesion (a) present value of future benefits and the present value of future premiums. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. B. An annuity whose based on the stock market index? When a policy has reached its final destination and can be paid out in full is when the policy has ____________? Empire Company is a manufacturer of smart phones. The insurer issues the policy and learns of his history one year later. O d. The policy is issued for one year and may be renewed annually with evidence of insurability. 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. Most insurance policies contain a specific limit that an insurer will pay for a single claim. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Which of the following is the basic source of information used by the company in the risk selection process? Candidate List of substances of very high concern for Authorisation This type of life insurance is called If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of insurer would it be considered in New York? 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. The money in a savings account 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. The NAAR for a life insurance policy is the difference between the 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? D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". D. Concealment If the corporation collects the policy benefit, then -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? when the applicant/owner is not the insured-3rd party B) The parent is responsible for the premium. Which of the following is usually true of a participating life insurance policy? D) the minor in a juvenile policy. -and the right to vote. A SEC registration. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. Cash values are available in whole life policies. B) Fiduciary refers to a position of trust. Waive the premium if the INSURED becomes totally disabled. Coverage is available in $50,000 increments up to the maximum of $400,000. Insurance is designed to provide protection against which of the following? Which of the following about decreasing term insurance is true? C. Conditional contract &\begin{array}{l|lr} He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. c. Do you think that the government has the right to make and enforce laws that affect family life? All of the following are methods of payment? What are some of the questions asked on the application to determine the premium and risk classification of the insured? In this case, the applicant will most likely need to fill out a Statement of Good Health. (Choose from the following options) (6). Cash values can be borrowed at any time An insurer that was incorporated in a different state that it is doing business in. 6)Explain Free Look period-10-30 days- unconditional refund that begins when policy is delivered. A ____ contract requires that both parties perform certain duties. A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. \hline \text { Jul 1 } & \begin{array}{r} All of the following statements about term insurance are true EXCEPT. 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. ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" D. Effect of inflation on income over time. A. (3), WHat is the difference between universal and whole life policies? All renewable term policies are accepted without__________ and only with_____ collected. The applicant's medical background is addressed in Part 2 - Medical Information. (c) two-income earner family. 3)Rider expires 60,65,75. Costs of training a replacement 3)2 death benefit option 2. This form of life insurance has fixed premiums and the cash value is not guaranteed. The cost of a living rider is calculated by what? Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} Correct: D. Concealment. B) They illustrate the nonguaranteed elements of the policy. B) bonds 3. Chapter 1- General Insurance Flashcards | Quizlet -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded B. this insurance is often written in connection with automobile loans. a) Aleatory 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. An aleatory contract is a contract where the monetary values of the parties performances are________________. \text{Sales revenue}&&\$780,000\\ Which model is the better fit for the data? On DUE DATE. Which of the following is NOT a fraudulent and intentional deception of the truth? Conditional Contract d) Policy dividends. Which of the following is a financial rating service? Exclusion Categories -Take it or leave it contract C. Concealment A life insurance license. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Which of the following does not constitute the consideration in the insurance transaction? Observers and analysts have attributed the reasons for the 2001-2006 housing bubble and its 2007-10 collapse in the United States to "everyone from home buyers to Wall Street, mortgage brokers to Alan Greenspan". Solved All of the following statements about professional - Chegg EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} A. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ C. Certain Risk C. Buy-Sell agreements are normally funded with a life insurance policy d) Older. Which of the following is an example of an unfair claims settlement practice? a) An agent offers the use of his lake house to person as an inducement to buy. -guaranteed/fixed/level payment, -Immediate "annuitization phase" A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. 25,500, AccountspayableJul114,500???? b. it frequently includes coverage for losses due to casualty and theft. -Staged intervals Which of the following is an example of liquidity in a life insurance contract? (c) Most policies can be converted to a permanent life insurance policy.