Universal Life is also known as two things what are they? ____________ insurer is not a type of insurer. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? c) National Association of Insurance Commissioners All of the following statements about universal life insurance are true EXCEPT It is a type of tort. 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. 2)non-qualified plans What are the permanent working capital needs of your company? 3) Retaining the risk. B) the applicant. (c) both I & II (d) neither I or II. -guaranteed/fixed/level payment, -Immediate "annuitization phase" -sex doesn't determine eligibility. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. The ___________ controls all rights of the contract. An insured owns a life insurance policy. d) Loss. Difference between Universal Life Insurance and Whole Life Insurance? *Both not taxable. The insurer that is transferring the risk to another company is called the ____________ __________. \end{aligned} b) Cost of living rider. -assignor=assignee Which of the following is NOT an example of a business use of Life Insurance? Steven prints a pamphlet to advertise his life insurance business. What does "liquidity" refer to in a life insurance policy? Who would be eligible to obtain SGLI? An Insurance Broker is responsible for what? Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. (c) PV of the family's share of a deceased breadwinner's future earnings. B) A fiduciary is a producer who handles insurer funds in a trust capacity. A) They must be given to all Life insurance applicants. In this case, the applicant will most likely need to fill out a Statement of Good Health. A. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} A securities license. A life insurance policy is exchanged for an annuity. Which kind of agent enters into agreements with more than one insurer? A corporation is the owner and beneficiary of the key person life policy. The insurer issues the policy and learns of his history one year later. D) Obtaining a bachelor's degree. D. Reduction is a method of managing risk. 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. ~~~\text{Advertising expense}&90,000\\ Can term insurance be both renewable and convertible? The primary purpose of buying an annuity is? The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? C. They can borrow higher amounts off of their policies (b) single-parent family. D. Gender. $ cant exceed indebtness. Predicted needs of the family after the insured's death are used in the needs approach. Term life insurance provides the largest amount of coverage for the lowest amount of premium. An underwriter will consider each of the following factors when evaluating a risk, except: A. \hline \text { Jul 1 } & 5,500 &&\\ a) Material change What else must he include? 1)tax qualified plans 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. a) Premium amounts and surrender values insured is always the borrower & the beneficiary=lender All of the following characterize term life insurance, EXCEPT: Select one: a. A. Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. Cash value is the same as ___________ when the policy matures. After insurer makes an offer, what must the applicant do? 5)Survivorship Life Policy (policy holder pays themselves). Various life insurance programs for people who served in the military are called ______________? 3)Consideration - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. b) Copies of illustrations and application All of the following statements concerning coinsurance are true, EXCEPT . A debtor has an insurable interest in the life of a lender. Insurance is designed to cover both intentional and unintentional losses. 3)Explain any riders or exclusion C. Unilateral contract B. Nonadmitted An applicant is denied insurance because of information found on a consumer report. ? Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. (a) They increase at an increasing rate. -Can't lose value SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). Credit life The application is the basic source of information an insurer uses in the risk selection process. Correct: A. If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? 4. d) Performing reviews of insured's coverage. 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. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? b) The elderly D. Delivery receipt. b. A. C. Premiums are determined by age sex and occupation of each individuals certificate holder. Business partners have an insurable interest in each other (c) human life value method Which of the following is NOT an allowable 1035 exchange? a) No penalties, since the owner is older than 59 An agent has authority to do all of the following, except: A. Countersign insurance contracts 2)people under the influence of drugs or alcohol An insured is driving her automobile and strikes a large pothole that . c) Smaller. D. Concealment d) The Medical Information Bureau. d. It does not require a duty to be owed. Buy-sell agreements are normally funded with a life insurance policy. & \text{ ???? } (c) term insurance Economics questions and answers. Most agents try to collect the initial premium for submission with the application. The following are all true regarding risk management, except: A. d) Military personnel. 4. After examining other manufacturing cost data, you have acquired additional information as follows. b) Fixed income Insurance producers must ensure that contracts they recommend are in the best interest of the insured. a) Executive offer of the replacing company a. mentally counting backward from 1,0001,0001,000 4) 3 components to the premium, The owner and the insured are different people. c) Low-income individuals and families 1 / 25. 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 . The Terrorism Risk Insurance Program is administered by which of the following Federal entities? 1) preferred-low An aleatory contract is a contract where the monetary values of the parties performances are________________. Which of the families below is likely to have the least need for a large life insurance policy? What are (4) ways annuities are classified? Level-increasing face value. -7 pay test is used to determine If a policy is a MEC. A. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. All of the following are business uses of life insurance EXCEPT Department of Defense The County is administered by a five-member Board of Supervisors who are elected for four-year terms D. Speculative Risk Rates are considered inadequate when they do not cover projected losses and expenses. B. Buy-Sell Agreements pay in the event of a medical emergency 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) Year only. Compensating executives The storage of flammables in a fireproof container. See Answer. 2)attorneys 2)premium gets lower. Accelerated Living Benefit/Accelerated Death Benefit? All of the following are true of negligence, except: a. 2. C. Consideration Tax-qualified annuities are subject to IRA maximum contribution limits. b) Adjustable life Being young and healthy means you can skip out on health insurance. It has cash value that is invested into the stock market through mutual funds/securities. The failure to disclose known facts is what? -Take it or leave it contract When a policy is non-contributory how much is paid? a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . Nonparticipating policy. A. 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. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. \text { Type II } & \$ 20 & \$ 30 & \$ 40 The premium is level and guaranteed not to increase. Your device, make and model. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. All of the following are characteristics of group life insurance EXCEPT. If the insurance carried is less than required, the insurance may not cover the whole loss. 3)Rider expires 60,65,75. ________________ are the person who receives benefits payable upon death. Represent the insured's interest (2), The current market will influence the cash value Which method makes the most sense for her to employ? Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Benefits received are considered income taxable (d) annual premium and the annual policy dividend. There is a limit for a withdrawal and the insurer charges a fee. The applicant accepts the invitation by paying the ___________. What type of interest does universal life have? What (5) Factors for GIO & GIB. whose covered? Conditional Contract Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? Legal Purpose What is the MIB? If the ultimate consumer is a business that collects and pays to the government VAT on . 2)FCRA(fair credit reporting act) checks MIB report. The policy is issued for one year and may be renewed annually with evidence of insurability. b) Coverage ends and the policy cannot be reinstated. d) Paid-up option. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? All of the following information about a customer must be used in determining annuity suitability EXCEPT Which of the following is the basic source of information used by the company in the risk selection process? C. Whole life What does it mean when a policy is limited pay life? D. Offer Whole life policy. What type of insurer has no capital stock? 2) premiums do not change This method of estimating . Correct: C. Consideration. All of the following are true of insurance EXCEPT It transfers risk. 3)low premiums. - Limited Pay Life b) An agent offers to share his commission with a policyholder. Whoso. \end{aligned} If applicant is not the insured- then insureds signature is required C. The insurer is always required to pay the . 10 year level term Which of the following is a physical hazard? b) Outline of coverage 3) type of plan they applied for. Type I rooms do not have wireless Internet access and are not available for the Business rental class. \end{aligned} IRS classification of a policy that is overfunded? The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? 1) coverage is permanent 1)premium payment Is claim still paid if there is a misstatement of age or sex? 3)riders & exclusions 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? 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. All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant D. Viatical settlement. C. Application &\begin{array}{r|lr} 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. B) Underwriters. The insurance provides protection for a specified period of time. C) purchasing family term insurance. D) Insurance covers intentional losses as well as unintentional. a) The policyholders or stockowners of the company B. Who assumes control over an insurance company's funds and management if it becomes insolvent? a) Payor rider. Life insurance policy premium charged the policyowner that can be less than that guaranteed in the contract, premium increases gradually during the first few years and then levels off, All of the following statements are true regarding mortgage protection insurance EXCEPT. Group life insurance is most often issued as guaranteed annual renewable term. B. Avoidance Where does group-life insurance come from? c) The policy will be voided. An insurance consultant CANNOT be which type of persons? What is the term for a cause of loss, such as the theft of a car? B. Twisting 2)not payable in conjunction. All of the following statements about term insurance are true EXCEPT. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ B. IN WHITE RAIMENT. D. Breach of warranty & \text { Depr } & 3,000 \\ The parties in the insurance contract consist of whom? may not be altered by an agent and must clearly state that it is not part of the contract. C. Domestic The designation will be void/. -cash value options A. exclusions: when the accident occurs within an illness,disease, or mental infirmity. 2) Transferring the risk B. b. persistent fear of germs D. The benefit is received tax free. A policy summary D. Alien Who represents the insured when dealing with insurance companies? A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights What are the (5) Factors considered with combination policies Who and What are they? Be prepared to justify your answer. . (3), WHat is the difference between universal and whole life policies? See Answer. 3)Increasing term adds face value. 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". a) Offering additional coverage to clients What must exist at the time of the application? I. A _______ __ is the additional premium needed to get covered with high or substandard risk. Premiums are not tax deductible as a business expense Whats the "take it or leave it contract"? There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Which of the following types of insurance policies would perform the function of cash accumulation? &\text { Cash }\\ Which of the following statements concerning buy-sell agreements is true? Claim is still paid with an adjustment to the benefits. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. a) A medical examination D. A surplus lines broker deals with admitted carriers only Premiums are not tax deductible as a business expense. D. The ratings are available to the public 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? D. Premiums are tax deductible as a business expense, B. 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. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as. The cost of a living rider is calculated by what? 25,500, AccountspayableJul114,500???? All of the following are common characteristics of this coverage EXCEPT A. A. signed waiver of premium ~~~\text{Direct labor cost}&190,000\\ B. C. Certain Risk \end{array} Predicted needs of the family after the insured's death What is the primary source of info for the underwriting department to determine insurability? (c) They decrease at a constant rate. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. Round Trees management makes a forecast of the demand by rental class for each night in the future. Which of the following is the best reason to purchase life insurance rather than annuities? ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} Executive office 4)decrease premium paying period. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. b) Human life value approach Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. &\begin{array}{cr|} However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. &\text { Inventory }\\ Long term- the longer the policythe more spread out the policy premiums are. c) Counselor 90-180 days. d) Decreases annually. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? Policy Holders/Shareholders have the ability to vote for members of the board of directors or governing body of the company.. this is called their____________?