Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. A. 3)certified public accountants, Is insurance that is provided by the Federal or State government -Follows all conditions of contract & pays premium, -insurer says how policy works c. continuous premium whole life Empire Company is a manufacturer of smart phones. \text{Less: Operating expenses}\\ A. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} (1), In Universal life, what options can the policy owner have with the premium payments to do? \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ ? D) Obtaining a bachelor's degree. Exclusions always exist, and there is a reason for each one. D. Accident & \text{ ???? } (3), WHat is the difference between universal and whole life policies? D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. Correct: D. Concealment. C. Premiums are tax deductible by the key employee Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. C) common stock 4. Insurance is considered a transfer of risk. d) Blackout approach. Who represents the insured when dealing with insurance companies? What is an exchange of a whole entire life policy for another? D. Term life. Correct: B. A. D. The ratings are available to the public -provides income for retirement B. Something of value is a __________________. 3)semi-annual -The insurer would pay the face amount of the policy minus the past due premium. D. Claim History D) An agent's report and inspection report provides personal information. C) Completing pre-licensing training. Rating codes are assigned to show financial strength or weakness of each company rated Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). All of the following statements about universal life insurance are true EXCEPT C. They can borrow higher amounts off of their policies (b) The face amount of the policy is paid if the insured lives to age 65. A contract that allows an insured to be restored to the same financial condition as prior to the loss is considered to be what type of contract? -tax free accumulation of borrowing. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer AccountsreceivableJul1Jul3121,000???? B. 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. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. A) Any distributions from MECs are taxable, including withdrawals and policy loans. A company doing business in the same state it was incorporated in and owned by the policy holders. An insured is driving her automobile and strikes a large pothole that . All of the following are methods of payment? -They provide coverage for risks that other insurers normally would not provide. &\begin{array}{lr|rr} b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. b) Adjustable life -has cash value invested in the stock market c) The policy will be voided. c) Misrepresentation Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? don't pick binding receipt at all on test. What will probably happen? B. C. Countersign insurance contracts -Voting. C. it is often experience-rated, with premrums based on expected losses. c) Premium accountability. b. persistent fear of germs All of the following statements about term insurance are true EXCEPT. The corporation also helps detect and prevent insurer impairments. Endowments means policy is what(2) things? Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Who might receive dividends from a mutual insurer? Question: 55. ~~~\text{Depreciation on factory equipment}&31,000\\ &\begin{array}{cr|} A corporation is the owner and beneficiary of the key person life policy. Round Tree has 100 Type I rooms and 120 Type II rooms. 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. a) Universal life c. Manufacturing expense accounts and their balances for the month are as follows: DepreciationExpense-FactoryEquipment$5,770.24MiscellaneousExpense-Factory$13,780.48DepreciationExpense-Building2,822.40PayrollTaxesExpense-Factory43,736.00Heat,Light,andPowerExpense9,055.20PropertyTaxExpense-Factory6,088.32InsuranceExpense-Factory1,505.28SuppliesExpense-Factory18,063.36\begin{array}{lrlrr}\text { Depreciation Expense-Factory Equipment } & \$ 5,770.24 & \text { Miscellaneous Expense-Factory } & \$ 13,780.48 \\ \text { Depreciation Expense-Building } & 2,822.40 & \text { Payroll Taxes Expense-Factory } & 43,736.00 \\ \text { Heat, Light, and Power Expense } & 9,055.20 & \text { Property Tax Expense-Factory } & 6,088.32 \\ \text { Insurance Expense-Factory } & 1,505.28 & \text { Supplies Expense-Factory } & 18,063.36\end{array} Predicted needs of the family after the insured's death Correct: C. Condition contract, enforceable only under certain conditions. 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. 2)Explain and collect any ratings 4. 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. 2)when benefits begin * 50% is paid \underline{\hspace{40pt}}. Misappropriation or illegal withholding of the policyholder's money. The __________ branch of the state government influences public policy regarding insurance laws. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . Nonparticipating policy. II. A. b) The elderly A FINRA registration. 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. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Correct: C. Consideration. Certificate holders may convert coverage to an individual policy without evidence of insurability. Correct: A. \hline & \text { Jul 31 } & 19,500 Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? 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 d) Decreases annually. -But pays you interest, 1)Fixed annuity C. Unilateral contract C. Certain Risk A securities license. (c) They decrease at a constant rate. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What is NOT invested in the stock market but pays you interest? 3)they provide insurance to members. A producer wishing to appeal the final order of the commissioner would appeal to???? 1)cont. Non-Participating (stock) Life Insurance Policy. Mutual life policy. d. The total of all cost sheets completed during the month is $628,880.00. What type of interest does universal life have? D. The face amount remains the same throughout the life of the policy. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. b) To deter the policyowner from committing suicide A) They must be given to all Life insurance applicants. B. this insurance is often written in connection with automobile loans. Which of the following is a financial rating service? (a) matured. The insurer that is transferring the risk to another company is called the ____________ __________. 2)Straight Life 2)can be sold as a rider to a whole-life policy. D. Solicit applications on insurer's behalf b) 5 years only. Surplus lines broker deals with admitted carriers only If the initial premium is not paid with the application, the agent will be required to collect the premium at the time of policy delivery. C. Social Security works exactly same as private insurance. b) 10% for early withdrawal ______________ is defined as restoring the insured to the same financial condition as before the loss. B. Hammond Corporation manufactures televisions. Which of the following is true regarding the beneficiary designation of the former spouse. -guarantee a stream of income to the person purchasing it known as the annuitant. Joe, Larry, and Curly own a small business. B. IRS has no jurisdiction The 7 paytest is used to determine if a policy is a _______? a. 2. -kids till 21 I. 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) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. 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? Who gets $$money when the policy holder dies? D) adding cost of living coverage. \textbf{Income Statement}\\ A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. What are the permanent working capital needs of your company? Premiums are not tax deductible as a business expense. ~~~\text{Utilities expense}&12,000\\ (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. -7 pay test is used to determine If a policy is a MEC. D. Workers compensation. There is a limit for a withdrawal and the insurer charges a fee. B) They illustrate the nonguaranteed elements of the policy. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. d. falsely believing that a spouse has been The replacing company notifies the replacement company. C. group credit life insurance does not build cash values. Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} The person who receives the benefit when insured dies. B. Insurance is an important tool to manage risks, but often unavailable to poorer households. good health 2)administered charge has reached its final destination and can be paid out in full. Waive the premium if the INSURED becomes totally disabled. What adds coverage and modifies coverage? S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Weiss and Fitch are two of these services, although there are more. D) the minor in a juvenile policy. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. a) Year only. Life insurance proceeds b) Promptly forwarding premiums to the insurance company 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? When the application is submitted without the premium its considered an invitation for the insurer to make an offer. The penalty is 50% of the shortfall from the required annual amount. \hline && \text { Jul 1 } & 65,000 \\ The policyowner has a variety of options for investment of the cash value. The benefit is subject to the exclusionary rule The applicants(policy owner) A) The amount of insurance of the life of any debtor may at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor. d) Limited pay. Warranty Life insurance prodceeds In order for the contract or policy to be valid or legal? b) Failure to promptly settle a claim when liability has been clearly established 4. An Applicant inaccurately representing information on the application is guilty of: A. What else must he include? -policyowners right provision A. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. b) Conditional receipt Policyholders 4)explain policy & provisions b) The policy will not be affected. d) The Medical Information Bureau. InventoryJul1Jul3122,000???? 1. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. Beneficiary's age is not a suitability factor. Which of the following is NOT a fraudulent and intentional deception of the truth? Increasing term Who assumes control over an insurance company's funds and management if it becomes insolvent? The issuance of a binder is the result of the ___________________ of an offer. An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? 3) Retaining the risk. b) Fixed income C. Whole life Suitability 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? Buy-sell agreements are normally funded with a life insurance policy. A. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ database of previously life and health insurance applications. a) Because the insured is currently not a drug user, his policy will not be affected. Which of the following statements about limited-payment life insurance is true? &\text { Rental Class }\\ a) Juvenile Life -the insurer sets the terms of the contract and the applicant must adhere to them. 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. (b) Cash value accumulation is slow to moderate. Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. 1) insured gets higher amount Correct: A.A peril. (c) face amount of the policy and the legal reserve. the application is used at the primary source of info. I. may not be altered by an agent and must clearly state that it is not part of the contract. 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. Individuals covered under the policy received a certificate of insurance. Rates. C. Buy-Sell agreements are normally funded with a life insurance policy C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as (b) Prepare a correct income statement for October 2017. Executive office WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} To sell variable life insurance policies, an agent must receive all of the following EXCEPT 1)premium payment Which of the following is an example of liquidity in a life insurance contract? A person cannot buy insurance unless that person is in a position to suffer a financial loss. 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. Correct: C. Unilateral contract. A. How much life insurance should Sam advise . For example, a claim will be paid only is there has been a covered loss. (Choose from the following options) In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? Premiums are taxable to the employee A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. -Prepays portion of face amount if diagnosed with terminal illness. 3) Ordinary. The shifting of risk of loss to a larger homogeneous group is known as what? Annual income When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? a) Withdrawals are not taxable. (a) I only (b) II only B. B. Insureds current and future income C. Insured's annual expenses This form of life insurance has fixed premiums and the cash value is not guaranteed. What is the MIB? B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. Jul3119,500\begin{aligned} 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. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. &\text { Retained Earnings }\\ The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. c) National Association of Insurance Commissioners exclusions: when the accident occurs within an illness,disease, or mental infirmity. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. The following information is taken from the records of Hammond on November 30 of the current year. Insurance is designed to cover both intentional and unintentional losses. It is used to pay off the balance on the mortgage. *Both not taxable. (Medic Information Bureau)? Contract of adhesion 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. CPI (consumer price index) without evidence. 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? This type of life insurance is called Insurance is designed to provide protection against which of the following? \end{array} Which of the following statements concerning buy-sell agreements is true? b) Increasing Premium DONT PICK IT!!!!!! (b) single-parent family. 2) Transferring the risk Which of the following is usually true of a participating life insurance policy? A debtor has an insurable interest in the life of a lender. -Take it or leave it contract d. It does not require a duty to be owed. 4. Insurance is not designed to cover _____________ losses. 3)Increasing term adds face value. 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. Liquidity in life insurance refers to availability of cash to the insured through cash values. Which of the following is the best reason to purchase life insurance rather than annuities? D. Financial Experience. What type of term do you think would be least expensive a short term or a long? Alex, age 26, purchased a 20- payment whole life insurance policy. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? 3)Explain any riders or exclusion What is the term for a cause of loss, such as the theft of a car? B. D. group credit insurance must have a suicide clause . Fraud a) Tax-qualified a. whole life paid at 65 The companys president is concerned about the accuracy of the income statement. Payor benefit/Clause is always a _________. -Not a true insurance company 2)non-qualified plans If you don't have health insurance, you pay all costs for healthcare and medical emergencies. \end{aligned} An insured owns a life insurance policy. & &&\textbf{ Quarter } \\ (c) both I & II (d) neither I or II, Diane is a single parent. 2)APS=medical records C. Loss of personal income An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. a) A medical examination Consumer report ? All The statements made on the application are called ______? 2)people under the influence of drugs or alcohol Cash values can be borrowed at any time -sex doesn't determine eligibility. He would also like to invest in a mutual fund. D. They can decide when to pay their monthly premiums. Steven prints a pamphlet to advertise his life insurance business. -guaranteed/fixed/level payment, -Immediate "annuitization phase" A state administered health insurance for the needy? C) the proposed insured. $ cant exceed indebtness. b) Fiduciary responsibility. Insurance transfers risk but it does not__________ risk. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? B. Concerning insurance, the definition of a fiduciary is What are (4) characteristics of permanent insurance? When does the grace period begin and how long is it? 2)face amount is set b) State attorney general To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. A ____ contract requires that both parties perform certain duties. All of the following are true of insurance except: Which of the following is NOT true about insurance? Instructions A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. ? D. An individual has an insurable interest in her or her own life. D. Delivery receipt. A __________ represents the insured. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. (c) conversion provision d) Tax-deductible. -pay for certain time and stop Which kind of agent enters into agreements with more than one insurer? c) Increases annually. b) Universal Life Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. -If the insured dies, the policy payed out the PRINCIPAL SUM Prepare a pie chart of on-time delivery performance for last month. B. 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. 3)mortality charge. The applicant accepts the invitation by paying the ___________. -it pays the double indemnity, 1)accident occurs, person must die within 90 days (c) term insurance 17,000, InventoryJul122,000???? The premium is guaranteed for an initial period and then the insurer can charge up to a maximum premium charge in what type of policy? \hline Participating policy. and is NOT a party to the contract. 1) Conditional Reciept II. c. thoughts of harming a neighbor An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. Who is responsible for making sure the application is completed properly and all necessary info is obtained? Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. Which of the following types of insurance policies would perform the function of cash accumulation? 2. -birth of child. Insurers use this law in order to predict certain types of losses and set appropriate premiums. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? Statements in the application that are guaranteed true but later found to be false may result in what? A. A key person insurance policy can pay for which of the following? 2)Increase the face value \textbf{For the Month Ended October 31, 2017}\\ With a little work, an unused office area could be converted to a rental room. andre marriner family,
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