all of the following are true of insurance except

Question: 55. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. All The statements made on the application are called ______? 2)Variable annuity -sex doesn't determine eligibility. Payor benefit/Clause is always a _________. Cause of potential loss to property such as fire, windstorm, hail, flood, etc. If the corporation collects the policy benefit, then B. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ \hline && \text { Jul 31 } & 111,000 The death benefit varies according to investment experience. D. Funding against general company financial loss. (c) both I & II (d) neither I or II. Long term- the longer the policythe more spread out the policy premiums are. a) Tax-qualified 1. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. Chapter 11 - Life Insurance. (a) I only (b) II only The penalty is 50% of the shortfall from the required annual amount. 1)policy owner can increase/decrease/ or skip premium payments You cannot sell a variable policy without what? \end{aligned} Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? 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} (Choose from the following options) It is used to help adequacy and equity in rates. Whoso. A. Pure risk C. Certain Risk a) Because the insured is currently not a drug user, his policy will not be affected. A) the agent. Insurance is designed to provide protection against which of the following? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. The __________ branch of the state government influences public policy regarding insurance laws. (a) matured. A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? The cost of insurance protection is referred to as what? Premiums are taxable to the employee Example: company that is incorporated in NJ and sells in NJ. c) Coverage ends but the policy can be reinstated at any time. 2)administered charge What kind of penalty would the IRA owner pay? 3)Alien Insurer. Medical exams provide information on current health. An aleatory contract is a contract where the monetary values of the parties performances are________________. 2)Legal Purpose D) Obtaining a bachelor's degree. -it pays the double indemnity, 1)accident occurs, person must die within 90 days A FINRA registration. B) A fiduciary is a producer who handles insurer funds in a trust capacity. D. The face amount remains the same throughout the life of the policy. A debtor has an insurable interest in the life of a lender. What are two reasons that people deposit money in banks? 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 . 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? The policy is a conditional contract Who assumes control over an insurance company's funds and management if it becomes insolvent? 3)substandard risk. b) Fluctuates. 2)interest sensitive B. Which of the following is NOT an allowable 1035 exchange? (c) face amount of the policy and the legal reserve. A policy summary usually includes all the listed information, and must be delivered along with a new policy. d) Fiscal responsibility. d) Decreases annually. &\begin{array}{lr|rr} 4. All renewable term policies are accepted without__________ and only with_____ collected. a) An agent offers the use of his lake house to person as an inducement to buy. 2. (d) They remain level. c) Counselor Tamara purchased a term insurance policy when she had high life insurance needs and limited income. 1)absolute assignment-all rights are assigned AKA-payout phase. Newborns after how many days become covered in a child rider? -it is a type of Rider 3)MIB=records of all previous insurances they had. Coverage is available in $50,000 increments up to the maximum of $400,000. Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. An insurance consultant CANNOT be which type of persons? Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. (a) capital retention approach 1)Statement of continued good health 1. The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. Non-Participating (stock) Life Insurance Policy. Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Part 1 of the application includes the general questions about the applicant, including name, age, address, birth date, gender, income, marital status, and occupation. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers 3) type of plan they applied for. Cash values can be borrowed at any time A person cannot buy insurance unless that person is in a position to suffer a financial loss. They become permanently disabled \\ -Not invested in stock market c) Variable Premium the application is used at the primary source of info. The insurance company may not void the insurance policy for which of the following reasons? ________________ are the person who receives benefits payable upon death. When applicant is not the insured ______________ must exist. c) 10 years. By William Lb Qtjetjx, Author of . the underwriting process is approved for: 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? It is the specific cause of loss. b) An agent offers to share his commission with a policyholder. A. (b) Face amount decreases during the policy period, but premiums remain level. c) Accelerated benefit rider. The cash value available to the policyowner After examining other manufacturing cost data, you have acquired additional information as follows. Rebating is an unfair trade practice and is regulated by law. b) Hazard Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Reinsurer Assuming company. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. As her friend, you have been asked to review the income statement and make necessary corrections. Hammond Corporation manufactures televisions. -pays an additional death benefit if the insured dies from an accident &\begin{array}{lr|lr} D) Claims result from losses by a peril insured against in an insurance policy. If applicant is not the insured- then insureds signature is required B. B. Avoidance Economics questions and answers. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. c) Conditional A person who negotiates insurance contracts on behalf of an insured. See Answer. ($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?" IN WHITE RAIMENT. An agent and an applicant for a life insurance policy fill out and sign the application. The policy is a contract of adhesion. Appoint a solicitor as his or her representative Insurance is not designed to cover _____________ losses. (Medic Information Bureau)? _____________ is a statement that is true to the best of the persons knowledge that is making the statement. An insurer that was incorporated in a different state that it is doing business in. a) Agent's report B. A debtor has insurable interest in the life of a lender (b) Most policies can be renewed without evidence of insurability. What characteristic must an annuity have if it is used to accumulate funds in an IRA? C. Application (d) Premiums increase at an increasing rate upon renewal. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. B. \end{array} Is interest always gained in Universal Life Policy? They keep a high percentage of any interest earned on their policies b. Correct: C. Unilateral contract. Daycare is considered to be among these expenses. Adverse selection is well controlled. 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? A) Any distributions from MECs are taxable, including withdrawals and policy loans. The applicant accepts the invitation by paying the ___________. C. Waiver 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. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles The policy does not go into effect until the premium has been collected. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. (b) The face amount of the policy is paid if the insured lives to age 65. 2)Decreasing Term b) Outline of coverage -and the right to vote. \text{Inventory} & 201 & 505 & 905 & 52 \\ B. What is the difference between renewable policy holder & Insurer? b) Human life value approach In this particular instance the applicant did not commit intentional fraud. Term. C. Loss of personal income c) A person who handles assets or money belonging to others. a) Consumer Privacy Act All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. ~~~\text{Depreciation on factory equipment}&31,000\\ 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? What is the purpose of a suicide provision within a life insurance policy? To sell variable insurance what must you have? a) More active. d) All of the above. Correct: A. 3)Family Policy(Limited but all fam members paid) 4)underwriting is complete Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. 4) 3 components to the premium, The owner and the insured are different people. 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 (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. Study with Quizlet and memorize flashcards containing terms like Which of the following would not appear in the asset section of an insurance company's balance sheet? (4), 1)monthly 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same Term life insurance provides pure death protection. D. Effect of inflation on income over time. An insured is driving her automobile and strikes a large pothole that . -cash value options B. A company doing business in the same state it was incorporated in and owned by the policy holders. 3)according to the source of annuity income Which of the following does not constitute the consideration in the insurance transaction? B. Marital Status It is a type of tort. Prepare the following details: Mobile number, serial number, or IMEI. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. The County is administered by a five-member Board of Supervisors who are elected for four-year terms The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? The purpose of an estate clearance fund is to pay all of the following EXCEPT. 2)not payable in conjunction. The cost of a living rider is calculated by what? 3)Rider expires 60,65,75. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. A. Which of the following is a financial rating service? 2)Foreign Insurer II. Which of the following is a physical hazard? C. Whole life 1) preferred-low 1)premium payment a) Aleatory (c) The number of times the coverage can be renewed is limited. &\begin{array}{cr|} Insurance companies can charge an interest rate based on the policyowner's credit report. (c) PV of the family's share of a deceased breadwinner's future earnings. There is no limitation on the number of key employee plans in force at any one time. 1)tax qualified plans It has cash value that is invested into the stock market through mutual funds/securities. 2)Family Income(decreasing term-policy) 4)Consumer report=credit, -shorter time span for paying premiums (a) I only Costs of training a replacement B. A ____ contract requires that both parties perform certain duties. (3), WHat is the difference between universal and whole life policies? The correct answer is: The premium decreases to zero by the end of the policy period. 1) Avoiding the risk C) An insurance contract must contain a copy of the original application. Is claim still paid if there is a misstatement of age or sex? Estate Creation B. All of the following are true of insurance EXCEPT It transfers risk. 2)Explain and collect any ratings The Terrorism Risk Insurance Program is administered by which of the following Federal entities? Which of the following best illustrates a D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. 3) Retaining the risk. For example, a claim will be paid only is there has been a covered loss. (d) paid-up. -Voting. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. 2. a) Juvenile Life The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. Whats the "take it or leave it contract"? 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. An Insurance Broker is responsible for what? 2) profits are returned as dividends Jul3117,000\begin{aligned} 3)increase the length of coverage When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? What are the 3 characteristics of a Mutual Insurance Company? D. The policy is a bilateral contract All of the following statements about the settlement of a claim are true EXCEPT. C. The insurer is always required to pay the . C) the proposed insured. What constitutes the acceptance of an offer? A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers -policyowners right provision (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. An insurer that is incorporated in the same state that they are doing business in is a_____________.? b. c) The inspection report If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? C. Concealment (c) both I & II (d) neither I nor II. I. D. Speculative Risk Each policy pays a percentage of the loss based on the percentage of coverage that policy provides.