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". The policy is issued for one year and may be renewed annually with evidence of insurability. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. a) Using arbitration when the insured and insurer cannot reach agreement a) A medical examination d) Producer. &\begin{array}{r|lr} How much life insurance should Sam advise . Insurance transfers risk but it does not__________ risk. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. -and the right to vote. 2) premiums do not change D. Speculative Risk After everything is signed & premium is collected What does the agent give to the policy holder? b) Unilateral Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? \hline & \text { Jul 31 } & 58,000 d) Fiscal responsibility. B. Avoidance C. Funding business continuation agreements (b) single-parent family. A. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. Various life insurance programs for people who served in the military are called ______________? Who might receive dividends from a mutual insurer? 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? d) Decreases annually. A __________ represents the insured. ________________ are the person who receives benefits payable upon death. Accidental Death Benefit \hline & \text { Jul 31 } & 19,500 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____________? Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. C. Risk What is the primary source of info for the underwriting department to determine insurability? - 20 pay life-premiums paid for 20 years and paid up at 65 Concerning insurance, the definition of a fiduciary is The companys president is concerned about the accuracy of the income statement. Reinsurer Assuming company. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. B. -pays an additional death benefit if the insured dies from an accident Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. a. mentally counting backward from 1,0001,0001,000 (b) Cash value accumulation is slow to moderate. & \text{ ???? } C) purchasing family term insurance. Annual income D. Unilateral Contract A) loss reserves 2. What are the permanent working capital needs of your company? \hline && \text { Jul 1 } & 65,000 \\ D) Claims result from losses by a peril insured against in an insurance policy. c) Needs approach b) The agent's report Which of the following is a financial rating service? She has limited income and significant life insurance needs. Jul313,000\begin{aligned} b. 1)absolute assignment-all rights are assigned b. If the corporation collects the policy benefit, then 1. The storage of flammables in a fireproof container. (b) They increase at a decreasing rate. D. The benefit is received tax free It has cash value that is invested into the stock market through mutual funds/securities. Economics questions and answers. There is no limitation on the number of key employee plans in force at any one time. b) Fluctuates. B) A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. B. b) Conditional receipt When an applicant pays the initial premium the agent will give them a what? 1)Whole Life (a) matured. A) They must be given to all Life insurance applicants. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. II. Agent Sam is using the human life value approach to assess Mary's life insurance needs. How has the Aswan High Dam affected the lives of Egyptians? All of the following are true about the Fair Credit Reporting Act Except: Regardless of what the consumer learns about the unfavorable information, the report can be changed by court action only. B. Marital Status ~~~\text{Utilities expense}&12,000\\ Round Trees management makes a forecast of the demand by rental class for each night in the future. C. It's a decreasing term insurance. D. The face amount remains the same throughout the life of the policy. Rating codes are assigned to show financial strength or weakness of each company rated Being young and healthy means you can skip out on health insurance. -car accident not in conjunction with an illness If you don't have health insurance, you pay all costs for healthcare and medical emergencies. Empire Company is a manufacturer of smart phones. A. I. An insurance company that was incorporated in a different state it is doing business in and pays dividends to its policyholders is known as a _________. A policy summary Steven prints a pamphlet to advertise his life insurance business. B) The parent is responsible for the premium. Which term describes the probability of a loss? (b) Any withdrawal of cash value reduces the death benefit. 2)Straight Life Members are assessed to fund the corporation. Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. (d) indeterminate-premium whole life. 4)explain policy & provisions 2)Increase the face value B. In a car accident dealing with ADB who covers the passenger? One sided contract is a ______________ contract. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. 1. C. Application - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. 3) policy builds cash-value 3)according to the source of annuity income d) Living need rider. B. IRS has no jurisdiction What is used for the underwriting department to determine insurability? A. contract of adhesion Premiums are taxable to the employee Weiss and Fitch are two of these services, although there are more. Which of the following is usually true of a participating life insurance policy? 3)Minors. 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. d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. (d) neither I nor II. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. All of the following statements about the characteristics of Social Security are true EXCEPT A. All of the following statements about term insurance are trueEXCEPTa. The purpose of an estate clearance fund is to pay all of the following EXCEPT. D) Obtaining a bachelor's degree. D. Accident Statement of good health The correct answer is: Maggie's Piano Studio with 1 employee. \end{array} Reinsurance has 2 types of policys, what are they? & &&\textbf{ Quarter } \\ See Answer. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. d. Where does group-life insurance come from? 5)coverage begins Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. (d) annual premium and the annual policy dividend. Which method makes the most sense for her to employ? The failure to disclose known facts is what? B. (b) level-premium method -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? C) Completing pre-licensing training. \end{aligned} -usually mutual fund security All of the following statements are true regarding mortgage protection insurance EXCEPT. In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. -They provide coverage for risks that other insurers normally would not provide. 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. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. C. Unilateral contract a) No penalties, since the owner is older than 59 -the insurer sets the terms of the contract and the applicant must adhere to them. Which of the following statements about a life insurance policy is (are) true? -Not invested in stock market Cash value is invested in the stock market. B. 3)Alien Insurer. Compute DVDs net cash provided by (used for) operating activities during July. If a parent purchases life insurance on their child all of the following are true, EXCEPT: A) The child is the insured. What is the MIB? A producer wishing to appeal the final order of the commissioner would appeal to???? b) Failure to promptly settle a claim when liability has been clearly established D. The benefit is received tax free. B. Twisting -receiving dividends(when declared) Claim is still paid with an adjustment to the benefits. Level-increasing face value. Funding against financial loss caused by the death of a key employee D. Gender. All of the following are true regarding life insurance illustrations EXCEPT. ~~~\text{Indirect labor cost}&28,000\\ Estate conservation 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? C. A husband or wife has an insurable interest in their spouse (a) I only (b) II only B. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. 3)MIB=records of all previous insurances they had. C. Certain Risk B. 17,000, InventoryJul122,000???? b) The elderly Conditional Contract An applicant is denied insurance because of information found on a consumer report. B. Foreign. The employer is the owner . Who assumes control over an insurance company's funds and management if it becomes insolvent? ~~~\text{Selling and administrative salaries}&75,000\\ \end{aligned} b. persistent fear of germs Which is generally true regarding insureds who have been classified as preferred risks? Signed waiver of premium If there Is a risk of financial loss then there is a what? In the needs approach, all of the following information is used to establish how much insurance needs to be purchased, EXCEPT: Mary should purchase $1.5 million ($75,000 x 20 working years remaining = $1,500,000). a) Consumer Privacy Act B. It does not include breach of contract. (c) both I & II (d) neither I or II. \end{array} When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? 2)APS=medical records 2)face amount is set 3) Increasing Term. D. The ratings are available to the public (1), In Universal life, what options can the policy owner have with the premium payments to do? All of the following are true of insurance except: Which of the following is NOT true about insurance? b) Copies of illustrations and application If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. D) An agent's report and inspection report provides personal information. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. (c) term insurance 2)Decreasing term(premium is low) declining face value She meets the definition of total disability under Social Security. b) Reduced paid-up 4)settlement options, 1)stand alone policy All of the following are characteristics of group life insurance EXCEPT. d) Primary and secondary beneficiary designations. 3)certified public accountants, Is insurance that is provided by the Federal or State government d) The Guaranty Corporation. B) bonds 3. 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. ___________ is the persons whose death triggers payment. 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. The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. C. They can borrow higher amounts off of their policies c) Comparisons with similar policies 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 The insurance provides protection for a specified period of time. What does "liquidity" refer to in a life insurance policy? b) Universal Life Everything else equal, how would the factor below affect the market value of a stock? \hline \text { Jul 31 } & 17,000 As her friend, you have been asked to review the income statement and make necessary corrections. C. Hazards A securities license. \underline{\hspace{40pt}}. Most policies can be renewed for additional periods without evidence of insurability. (b) The face amount of the policy is paid if the insured lives to age 65. Which of the following types of insurance policies would perform the function of cash accumulation? The following information is taken from the records of Hammond on November 30 of the current year. The policyowner can add to a policy's cash value at any time subject to policy guidelines. Payor benefit/Clause is always a _________. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? B. Insureds current and future income This method of estimating . (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. c) Increases annually. An individual applies for a life policy. a) To limit the insurer's liability after the 2 year waiting period 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? The parties in the insurance contract consist of whom? The County is administered by a five-member Board of Supervisors who are elected for four-year terms 2. CashJul1Jul315,500???? B. Which of the following about a VUL insurance policy is (are) true? may not be altered by an agent and must clearly state that it is not part of the contract. Prepare the following details: Mobile number, serial number, or IMEI. 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. AccountsreceivableJul1Jul3121,000???? A conditional or binding receipt is given when an applicant does what? Instructions Dividends received by policyholders of a mutual insurer are not taxable. C. The insurer is always required to pay the . -policyowners right provision C) They must contain a warning that actual results may vary. -paying for certain time and stop. Tom and Nancy Boyle provide financial support for their two children. \end{array} Breach of warranty B. this insurance is often written in connection with automobile loans. (a) blended family. Limited-Pay Life & Single-Premium Policies? Appoint a solicitor as his or her representative c) Disclosure rule Which of the following about decreasing term insurance is true? All of the following statements about the settlement of a claim are true EXCEPT. Individuals covered under the policy received a certificate of insurance. What type of insurer has no capital stock? Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. Hospital bills of the key employee A. a) Remains level. All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. (economy). If applicant is not the insured- then insureds signature is required Which of the following statements is NOT true concering insurable interest as it applies to life insurance? B. Misrepresentation d. The total of all cost sheets completed during the month is $628,880.00. c) Misrepresentation An__________ represents the insurer. When a policy has reached its final destination and can be paid out in full is when the policy has ____________? Buy-sell agreements are normally funded with a life insurance policy. (c) both I & II (d) neither I or II, Diane is a single parent. a) Accumulated at interest B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. D. Solicit applications on insurer's behalf ____________ insurer is not a type of insurer. \end{aligned} Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. (c) The number of times the coverage can be renewed is limited. \end{aligned} \end{array} I. b) To deter the policyowner from committing suicide Hazard When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? (a) universal life insurance. B. An Insurance Broker is responsible for what? The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. b) Coverage ends and the policy cannot be reinstated. Waiver of Premium- What happens to the insurer? The policyowner has a variety of options for investment of the cash value. (a) Interest is credited monthly to a policy's cash value. 2)when benefits begin B) They illustrate the nonguaranteed elements of the policy. B. b. it frequently includes coverage for losses due to casualty and theft. (b) Cash value accumulation is slow to moderate. 1) insured gets higher amount Conviction of a felony involving moral turpitude. Life insurance prodceeds The shifting of risk of loss to a larger homogeneous group is known as what? Why?". ($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?" 5)Survivorship Life Policy (policy holder pays themselves). Agents and producers must place business through an insurer with the lowest rated c) Premium accountability. 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 . Can term insurance be both renewable and convertible? B. An insured becomes disabled at age 22 and can no longer work. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. A. Foregin Which type of life insurance makes sense for someone in this situation? Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. 2)Variable annuity The following are all true regarding risk management, except: A. -Voting. D. Workers compensation. Jul3125,500\begin{aligned} The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 4)annual, Everytime you have a payment due. Term. Prior to October 2017, the company had been profitable every month. Medical exams provide information on current health. Correct: A. 2. 4)decrease premium paying period. A value-added tax ( VAT ), known in some countries as a goods and services tax ( GST ), is a type of tax that is assessed incrementally. a) Year only. compulsion? Term life insurance provides pure death protection. What will probably happen? (c) conversion provision This is called. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. 3) Retaining the risk. Which of the following best describes a surplus lines broker? By William Lb Qtjetjx, Author of . It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. B. Aleatory contract All of the following are business uses of life insurance EXCEPT The applicants(policy owner) 2) Transferring the risk It is a type of tort. 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. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. D) Obtaining a bachelor's degree. Quarterly working capital levels for your firm for the next year are included in the following table. A FINRA registration. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. What are the temporary needs? D. Funding against general company financial loss Tamara purchased a term insurance policy when she had high life insurance needs and limited income. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded Its controller resigned in October 2017. 1. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. 1) mentally incompetent persons Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. The premium is level and guaranteed not to increase. Benefits received are considered income taxable \text{Less: Operating expenses}\\ 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. ~~~\text{Advertising expense}&90,000\\ D. The face amount remains the same throughout the life of the policy. An insurer that is incorporated in the same state that they are doing business in is a_____________.? D. Represent the insured's interest 2)Explain and collect any ratings 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. All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. Rebating is an unfair trade practice and is regulated by law. 1)cont. For this amount of production, total factory overhead is estimated to be $396,000.00. Question: 55. a) The policy can be converted to term coverage. A. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ ADD( Accidental death and dismemberment??? c. Using the payback period, which project should Bill choose? Warranty RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. 4. d) 15 years. The cost of insurance protection is referred to as what? *Both not taxable. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy.

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