3)Increasing term adds face value. There is a limit for a withdrawal and the insurer charges a fee. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. All of the following statements about term insurance are trueEXCEPTa. They become permanently disabled The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. Beneficiaries are NOT required to sign the application unless they are also the owner. The 4 characteristics of a universal life policy are? Correct: D. Concealment. b) Promptly forwarding premiums to the insurance company b) Conditional receipt All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. Yes, all T-mobile insurance plans cover water damage. A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers A. 2)Legal Purpose You cannot sell a variable policy without what? New York City | Robert Klein | Robert Klein At Yale (1982) | baseball -tax free accumulation of borrowing. b. A life insurance license. Which of the following is the basic source of information used by the company in the risk selection process? c) Misrepresentation Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. 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???? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). - Limited Pay Life (b) Cash value accumulation is slow to moderate. Terms that apply to the insurer not the applicant. Rates. (c) They decrease at a constant rate. _______ pays dividends to the stock holder. Liquidity in life insurance refers to availability of cash to the insured. 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. To sell variable insurance what must you have? Beneficiary's age is not a suitability factor. (c) term insurance 2) profits are returned as dividends Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? B. C. Consideration -insured can stop paying premiums at certain age or after a period of time If the insured commits suicide after the 2 year period, the policy will pay the death proceeds to the designated beneficiary the same as if the insured had died of natural causes. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. &\text { Rental Class }\\ (b) single-parent family. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ CashJul1Jul315,500???? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. The concept that the insured should not profit from an insurance transaction is called what? 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. Which of the following about decreasing term insurance is true? Estimated direct labor costs for next year are$440,000.00. Predicted needs of the family after the insured's death James purchased yearly renewable term insurance. (c) expired. c. thoughts of harming a neighbor b) 10% for early withdrawal Individuals covered under the policy received a certificate of insurance. Your device, make and model. d) Graded Premium. This is called. A. signed waiver of premium Height Weight and Health conditions. Compute DVDs net cash provided by (used for) operating activities during July. When a policy is non-contributory how much is paid? A. Foregin The following are all true regarding risk management, except: A. 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. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. Correct: C. Concealment, A. Which risk management type is shifting the risk of loss to a larger homogeneous group? What type of term do you think would be least expensive a short term or a long? Solved All of the following statements about universal life - Chegg 1) Conditional Reciept An agent and an applicant for a life insurance policy fill out and sign the application. a) Using arbitration when the insured and insurer cannot reach agreement -The insurance dept. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet All of the following statements about term insurance are true EXCEPT. 1. C. The insured may retain part of a risk through deductibles. AccountsreceivableJul1Jul3121,000???? The policy is a conditional contract An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. (b) Face amount decreases during the policy period, but premiums remain level. Executive office Out of 20 yr or 30 yr which policy is less expensive? Which of the families below is likely to have the least need for a large life insurance policy? 3)MIB=records of all previous insurances they had. The application is the basic source of information an insurer uses in the risk selection process. c) Copy of the original application -the applicant must always initial the change 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 of insurance except: Which of the following is NOT true about insurance? Most agents try to collect the initial premium for submission with the application. A. 3. 2. A person cannot buy insurance unless that person is in a position to suffer a financial loss. Which of the following would provide an underwriter with information concerning an applicant's health history? Which type of risk involves the possibility of loss or gain? \hline & \text { Jul 1 } & 55,000 \\ d) Buyer's Guide. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? She has limited income and significant life insurance needs. D) adding cost of living coverage. B. Hammond Corporation manufactures televisions. An annuity is exchanged for another annuity. a) Accumulated at interest D. Gender. On DUE DATE. Which of the following statements about limited-payment life insurance is true? D) Obtaining a bachelor's degree. c) Variable Premium d. a) Small employers A. &\text { Accounts receivable }\\ (economy). 3)substandard risk. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. Who represents the insured when dealing with insurance companies? 4)defined contribution plans. A debtor has insurable interest in the life of a lender -greater potential to grow the cash value but there is no guarantee a) A retail clerk. a) Juvenile Life A conditional or binding receipt is given when an applicant does what? Which type of life insurance makes sense for someone in this situation? 1) mentally incompetent persons Suitability 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____________? C. Funding business continuation agreements Nature of risk 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution The ___________ controls all rights of the contract. Which of the following documents must be provided to the policyowner or applicant during policy replacement? -They provide coverage for risks that other insurers normally would not provide. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. c) An agent offers tickets to a baseball game as an inducement to buy insurance. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. B. 2) form of interest sensitive life insurance(current market conditions influence the cash value) The insurer issues the policy and learns of his history one year later. C. Risk a) To limit the insurer's liability after the 2 year waiting period Originating policy C. Unilateral contract -policyowners right provision d) Fair Credit Reporting Act. D. Delivery receipt. \text{Sales revenue}&&\$780,000\\ The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. A. contract of adhesion 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? The policyowner can add to a policy's cash value at any time subject to policy guidelines. D. Financial Experience. -ages 25,28,34,37,40 D) Obtaining a bachelor's degree. c) Disclosure rule a) Indeterminate Premium C. Insured's annual expenses Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees. 1) Family Maintenance(breadwinner) 3)low premiums. Tax-qualified annuities are subject to IRA maximum contribution limits. \text{Inventory} & 201 & 505 & 905 & 52 \\ 2)can be sold as a rider to a whole-life policy. 4)decrease premium paying period. 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. Correct: C. Condition contract, enforceable only under certain conditions. Claim is still paid with an adjustment to the benefits. A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called Medical exams provide information on current health. What type of insurer has no capital stock? (a) blended family. B. Beneficiarys age B. By William Lb Qtjetjx, Author of . The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. D) They must be signed by both the Producer and the applicant. paperspast.natlib.govt.nz b) The debtors eligible for insurance under the policy shall all be the debtors of the creditor(s). \hline && \text { Jul 31 } & 111,000 Which of the following is NOT an example of a business use of Life Insurance? Daycare is considered to be among these expenses. Dividends received by policyholders of a mutual insurer are not taxable. It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. \end{array} \\ 1) preferred risk B. Is interest always gained in Universal Life Policy? Under Section I, homeowners insurance must include d) Paid-up option. d) Fiscal responsibility. (receive dividends & the right to vote). A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. 2)premium gets lower. &&\\ Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. -Take it or leave it contract The insured agrees to maintain insurance equal to some specified percentage of the value of the property. 1)Level 1)cont. Which of the following about yearly renewable term insurance is true? All of the following are methods of payment? Chapter 3 part 1 Flashcards | Quizlet S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. a) Because the insured is currently not a drug user, his policy will not be affected. 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. c) A person who handles assets or money belonging to others. A. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". A policy that does not pay dividends to policyowners is a A. 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. 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 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. CPI (consumer price index) without evidence. -Can't lose value Solved All of the following are true for indemnity insurance | Chegg.com Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. a) Year only. Correct: A. D. Reduction is a method of managing risk. Which of the following statements about universal life insurance is true? B. b) Hazard . 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. B. Attempting to determine how much insurance an individual would require based upon their finacial objectives is known as.