all of the following are true of insurance except all of the following are true of insurance except

~~~\text{Advertising expense}&90,000\\ Accidental Death Benefit (b) Prepare a correct income statement for October 2017. D) Claims result from losses by a peril insured against in an insurance policy. The cost of insurance protection is referred to as what? 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) Fiduciary responsibility. -policy holder adheres to it (b) face amount of the policy and the total premiums that have been paid. Which of the following is true regarding the beneficiary designation of the former spouse. Premiums are taxable to the employee (b) The face amount of the policy is paid if the insured lives to age 65. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Correct: A Insurance . Tom and Nancy Boyle provide financial support for their two children. A conditional or binding receipt is given when an applicant does what? Reinsurance has 2 types of policys, what are they? When a policy is contributory how much is paid? The storage of flammables in a fireproof container. 1)Level D. The benefit is received tax free. 1) a policyholder votes on the Board of Directors It is most appropriate when an insured needs lifetime protection. (a) renewal provision He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. b. -below market interest rates on borrowing ADD( Accidental death and dismemberment??? If the corporation collects the policy benefit, then These individuals qualify for lower premiums than those in the other categories. 4)underwriting is complete All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. An insured owns a life insurance policy. c) Coverage ends but the policy can be reinstated at any time. 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? *The insured is diagnosed with terminal & chronicle illness DONT PICK IT!!!!!! When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? Only one party is giving a legally enforceable promise- A one-sided contract is what? They become permanently disabled c) Fixed premium Which is generally true regarding insureds who have been classified as preferred risks? Liquidity in life insurance refers to availability of cash to the insured. 3)low premiums. After Alex has made 20 premium payments, his life insurance policy is considered All of the following statements about the characteristics of Social Security are true EXCEPT A. B. The remaining amounts should be charged to selling and administrative activities. On DUE DATE. 3)substandard-highest, 6 factors that are complete for policy 2 be paid? Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. What happens when there is a Misstatement of age or sex? b) Promptly forwarding premiums to the insurance company Dividends received by policyholders of a mutual insurer are not taxable. cash value increases while face value remains the same. Now Tamara can afford whole life insurance. It requires evidence of insurability for renewal. d) Paid-up option. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. The correct answer is: Premiums are typically paid by the lender. Premiums are not tax deductible as a business expense. If applicant is not the insured- then insureds signature is required When a policy is non-contributory how much is paid? 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. Consumer report To sell variable insurance what must you have? Solved All of the following statements about professional - Chegg Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue -Prepays portion of face amount if diagnosed with terminal illness. B. (a) blended family. Which of the following is the basis for a claim against an insurance policy? B. Aleatory contract Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. b) Fluctuates. 4)defined contribution plans. 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 . -But pays you interest, 1)Fixed annuity 4) 3 components to the premium, The owner and the insured are different people. d) Decreases annually. d) An agent misrepresents policy benefits to convince a policyowner to replace policies. 2)Increase the face value It has cash value that is invested into the stock market through mutual funds/securities. B) The plan is funded by permanent insurance only. Investors become more risk averse. 1) the premium amount the application is used at the primary source of info. CashJul1Jul315,500???? 3. c) 10 years. Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ 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. Predicted needs of the family after the insured's death The application is the basic source of information an insurer uses in the risk selection process. Buy-sell agreements are normally funded with a life insurance policy. b) Increasing Premium Signed waiver of premium -receiving dividends(when declared) Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. (c) The number of times the coverage can be renewed is limited. 1) Competent Parties Exclusion Categories C. Domestic d) 15 years. Which risk management type is shifting the risk of loss to a larger homogeneous group? The debtor does not have an insurable interest in the life of the lender. What characteristic must an annuity have if it is used to accumulate funds in an IRA? Instructions 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} Who appoints the state insurance regulator in many states? Rates are considered inadequate when they do not cover projected losses and expenses. B. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} ~~~\text{Depreciation on factory equipment}&31,000\\ (a) I only (b) II only d) Living need rider. A whole life insurance policy is exchanged for a Universal life insurance policy. B. this insurance is often written in connection with automobile loans. 1)absolute assignment-all rights are assigned a) More active. Life Insurance Basics Flashcards | Quizlet When will coverage begin? b) Conditional receipt \end{array} Correct: B. d. It does not require a duty to be owed. A. c) Policy loans are taxable distributions. Solved All of the following are true for indemnity insurance | Chegg.com A. A corporation is the owner and beneficiary of the key person life policy. -marriage -If the insured dies, the policy payed out the PRINCIPAL SUM Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. C. Department of State Which of the families below is likely to have the least need for a large life insurance policy? A monthly deduction is made from a policy's cash value for the cost of insurance protection. a) Juvenile Life This is called. When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. (d) Most policies have a CV that is refunded when coverage ceases. C. They can borrow higher amounts off of their policies Causes of the 2000s United States housing bubble - Wikipedia B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. 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? After insurer makes an offer, what must the applicant do? Chapter 1- General Insurance Flashcards | Quizlet Is interest always gained in Universal Life Policy? D. Concealment a) Premium amounts and surrender values 5)Explain when coverage begins Must have at least 32/40 question correct for positive rating. 1. Which of the following is usually true of a participating life insurance policy? 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. c. It is the failure to use ordinary care. d) Graded Premium. When both parties to a contract must perform certain duties in order to make the contract enforceable, this is known as what? A debtor has an insurable interest in the life of a lender. b. Insurance is not designed to cover _____________ losses. Alex, age 26, purchased a 20- payment whole life insurance policy. B. Which of the following is the basic source of information used by the company in the risk selection process? d) The insurer will sue the insured for committing fraud. (c) both I & II (d) neither I or II, Diane is a single parent. 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. (a) I only (b) II only The total of all requisitions of indirect materials issued during the month is$20,170.00. What is the MIB? 2)collateral assignment-some or only one right assigned. C) common stock 4. D. Delivery receipt. 3)Minors. ____________ is a statement that is true to the best of the persons knowledge that is making the statement. (c) face amount of the policy and the legal reserve. An insurer that is incorporated in the same state that they are doing business in is a_____________.? B. Buy-Sell Agreements pay in the event of a medical emergency B. II. The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. a) Tax-qualified A. 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. All of the other statements are true. Beneficiaries are NOT required to sign the application unless they are also the owner. Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. (c) expired. 3) Increasing Term. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. ____________ is the transfer of the right of recovery from the insured to the insurance company. &\begin{array}{lccc} An aleatory contract is a contract where the monetary values of the parties performances are________________. 90-180 days. A. &\text { Inventory }\\ Costs of training a replacement a) Lump-sum approach All of the following statements concerning coinsurance are true, EXCEPT . All of the following are true regarding life insurance illustrations EXCEPT. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. c) Guides describing company financial integrity Life Insurance Flashcards - Cram.com D. Term life. Their premiums are lower c) Comparisons with similar policies d) Fiscal responsibility. All of the following are true about health insurance except: c) Smaller. Occupation \hline \text { Jul 1 } & 5,500 &&\\ Appoint a solicitor as his or her representative Legal Purpose B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. _______ pays dividends to the stock holder. Why do most states have a waiting period for couples applying for marriage licenses? (a) universal life insurance. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. A mutual insurance company is owned by who? ~~~\text{Indirect labor cost}&28,000\\ &\begin{array}{r|lr} 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 issuance of a _________ is the result of the acceptance of an offer. c) The inspection report c) Denying coverage after a reasonable investigation has been conducted A _______ __ is the additional premium needed to get covered with high or substandard risk. (d) Premiums increase at an increasing rate upon renewal. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? \end{aligned} c) National Association of Insurance Commissioners a) Remains level. 3)premium is collected (receive dividends & the right to vote). 2)quarterly D) the minor in a juvenile policy. The minimum FREE LOOK period is how many days? C. A husband or wife has an insurable interest in their spouse Tamara purchased a term insurance policy when she had high life insurance needs and limited income. B. Compensating executives still matures at age 100, -premium is paid off at one time I. An annuity whose based on the stock market index? Pure Risk. -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? -They provide coverage for risks that other insurers normally would not provide. 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? may not be altered by an agent and must clearly state that it is not part of the contract. There are 2 parties of the contract- what are they? The correct answer is: The premium decreases to zero by the end of the policy period. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. Newborns after how many days become covered in a child rider? b. A. contract of adhesion Surplus lines broker deals with admitted carriers only -age 100. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ ? Out of 20 yr or 30 yr which policy is less expensive? \text{Sales revenue}&&\$780,000\\ Policyholders A securities license. 1) insured gets higher amount \end{array} Permanent Insurance have 3 words in common, what are they? Prepare the following details: Mobile number, serial number, or IMEI. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). C. Whole life 3. The insurance provides protection for a specified period of time. C. Insured's annual expenses Past-due interest on a policy loan is added to the total debt. \end{aligned} What are the temporary needs? A producer wishing to appeal the final order of the commissioner would appeal to???? Statement of good health & \text{ ???? } A. A persons assets & liabilities at their time of death. d. 10 payment whole life, Chapter 12 - Life Insurance Contractual Provi, Chapter 15 - Individual Health Insurance Cove, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese. PracticeTest Flashcards by Gabriel Martinez | Brainscape There is no limitation on the number of key employee plans in force at any one time. d) Older. B. IRS has no jurisdiction C. Application a) Types of mutual companies Round Tree has 100 Type I rooms and 120 Type II rooms. The replacing company notifies the replacement company. 4. a. whole life paid at 65 The purpose of an estate clearance fund is to pay all of the following EXCEPT. d) Primary and secondary beneficiary designations. A. The NAAR for a life insurance policy is the difference between the Jul313,000\begin{aligned} Waive the premium if the INSURED becomes totally disabled. D. Agents report. (6). 2)FCRA(fair credit reporting act) checks MIB report.