d) Paid-up option. Explain your answer. Whats the "take it or leave it contract"? Department of Defense AccountsreceivableJul1Jul3121,000???? -tax free accumulation of borrowing. 1)tax qualified plans
B. A. If company pays dividends, then they are a? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. 2)interest sensitive
D. Delivery receipt. -guarantee a stream of income to the person purchasing it known as the annuitant. Breach of warranty (d) neither I nor II. Predicted needs of the family after the insured's death (c) both I & II (d) neither I or II. Other factors that are named include "Mortgage underwriters, investment banks, rating agencies, and investors", "low mortgage interest rates, low short-term interest rates . A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. The issuance of a binder is the result of the ___________________ of an offer. Who might receive dividends from a mutual insurer? b) Cost of living rider. Costs of training a replacement \end{aligned} 1) premium schedule differ from whole life
Long term- the longer the policythe more spread out the policy premiums are. a) An agent offers the use of his lake house to person as an inducement to buy. 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. 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} The applicants(policy owner)
? Which of the following is an example of liquidity in a life insurance contract? Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. 2)Decreasing Term
Cause of potential loss to property such as fire, windstorm, hail, flood, etc. B. Suitability d) Making claims payments which clearly indicate under which coverage payment has been made. InventoryJul1Jul3122,000???? Prior to October 2017, the company had been profitable every month. DONT PICK IT!!!!!! (a) I only (b) II only 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. 2) form of interest sensitive life insurance(current market conditions influence the cash value)
AKA-payout phase. C. Independent rating services evaluate and rate the financial ability of insurance companies &\begin{array}{lr|lr} 2)face amount is set
1. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded
C. Consideration Which of the following best illustrates a Compensating executives Correct: A. The Terrorism Risk Insurance Program is administered by which of the following Federal entities? Term life insurance provides the largest amount of coverage for the lowest amount of premium. On DUE DATE. -cash value can lose value. a) Remains level. ______________ is defined as restoring the insured to the same financial condition as before the loss. There is a limit for a withdrawal and the insurer charges a fee. 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). \hline && \text { Jul 1 } & 65,000 \\ The benefit is subject to the exclusionary rule Which of the following statements is NOT true concering insurable interest as it applies to life insurance? AccountspayableJul1Jul3114,500??? D. The ratings are available to the public (b) Any withdrawal of cash value reduces the death benefit. B. Beneficiarys age 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. 3) Retaining the risk. (a) matured. 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} The policy is a contract of adhesion. You cannot sell a variable policy without what? c. Premiums may be raised at renewal d. Group term insurance may cover the . b) The policy will not be affected. c) Extended term 3) policy builds cash-value
*Both not taxable. D. Premiums paid are deductible as a business expense. Insurance is an important tool to manage risks, but often unavailable to poorer households. An insured becomes disabled at age 22 and can no longer work. Which of the families below is likely to have the least need for a large life insurance policy? (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Why?". (d) They remain level. Term life insurance provides pure death protection. . This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. ~~~\text{Depreciation on sales equipment}&45,000\\ (Choose from the following options) d) The Medical Information Bureau. 2. The policy's cash value grows as the investments grow. 3)defined benefit plans
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. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. (b) variable life insurance In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? C. A surplus lines broker deals with direct writing companies only 3)Alien Insurer. C. Funding business continuation agreements D. Unilateral Contract The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. \hline (\$ 000) & 1 & 2 & 3 & 4 \\ A. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. C. Application d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. C) Completing pre-licensing training. Arrest History. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? A) They must be given to all Life insurance applicants. What type of interest does universal life have? Insurance is designed to cover both intentional and unintentional losses. It is a type of tort. \text{Less: Operating expenses}\\ 3)Rider expires 60,65,75. Various life insurance programs for people who served in the military are called ______________? The insurer issues the policy and learns of his history one year later. Correct: B. -Not invested in stock market
(d) Most policies have a CV that is refunded when coverage ceases. Which kind of agent enters into agreements with more than one insurer? A surplus lines broker places risk with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers Originating policy
-insured can stop paying premiums at certain age or after a period of time
c) 15% for early withdrawal Compute DVDs net cash provided by (used for) operating activities during July. All of the following statements are true regarding mortgage protection insurance EXCEPT. D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. d) 15 years. C. A surplus lines broker accepts business only from non- resident agents _________ is a determination that a statement made as a warranty, or true. Legal Purpose 5)Explain when coverage begins
A. 1)cont. Renew policy holder has an option- THE INSURER DOES NOT. See Page 1. 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? Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? The cost of a living rider is calculated by what? What is the term for a cause of loss, such as the theft of a car? Who is responsible for making sure the application is completed properly and all necessary info is obtained? Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. C) purchasing family term insurance. Pure Risk. c) Accelerated benefit rider. A FINRA registration. \hline \text { Jul 31 } & 17,000 \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ 2)Legal Purpose
b. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. A SEC registration. 3)low premiums. All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. If a change in the application is necessary what is required? Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. What is the difference between renewable policy holder & Insurer? d) Policy dividends. D) An agent's report and inspection report provides personal information. -Not a true insurance company
If applicant is not the insured- then insureds signature is required
4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution
1) Avoiding the risk
What kind of penalty would the IRA owner pay? C. Premiums are determined by age sex and occupation of each individuals certificate holder. a) Indeterminate Premium B. Insureds current and future income An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. To sell variable insurance what must you have? A. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health 3)certified public accountants, Is insurance that is provided by the Federal or State government
A persons assets & liabilities at their time of death. c. Using the payback period, which project should Bill choose? -below market interest rates on borrowing
C. Payment of premium It is used to pay off the balance on the mortgage. Alex, age 26, purchased a 20- payment whole life insurance policy. (d) sandwiched family. What insurance concept is associated with the names Weiss and Fitch? B. (6). 3. -ages 25,28,34,37,40
(c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. -assignor=assignee
Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. c. continuous premium whole life D. Represent the insured's interest What constitutes the acceptance of an offer? Investors become more risk averse. The purpose of an estate clearance fund is to pay all of the following EXCEPT. They keep a high percentage of any interest earned on their policies Pure risk WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. 4. 4) 3 components to the premium, The owner and the insured are different people. C. Social Security works exactly same as private insurance. 2)no cash-value
Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. D. Speculative Risk may not be altered by an agent and must clearly state that it is not part of the contract. See Answer. An annuity whose based on the stock market index? D) the minor in a juvenile policy. (c) term insurance 4)explain policy & provisions
2)Foreign Insurer
4)settlement options, 1)stand alone policy
(b) level-premium method 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. Prepare a pie chart of on-time delivery performance for last month. All of the following statements about ordinary life insurance are true EXCEPT. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. All of the following are business uses of life insurance EXCEPT C. Buy-Sell agreements are normally funded with a life insurance policy Beneficiary's age has reached its final destination and can be paid out in full. What are some of the questions asked on the application to determine the premium and risk classification of the insured? The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} An individual applies for a life policy. Correct: C. Condition contract, enforceable only under certain conditions. Buy-sell agreements are normally funded with a life insurance policy. (c) variable life insurance. A. 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. 1) Conditional Reciept
C. Countersign insurance contracts Rates \end{array} 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. cheating. \text{ ???? } 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? Which method makes the most sense for her to employ? B) They illustrate the nonguaranteed elements of the policy. D. Gender. Which of the following statements about endowment policies is true? Exclusion Categories Funding against financial loss caused by the death of a key employee -marriage
(economy). A. Foregin Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. Any profit realized in the operation will be used to provide dividends to stockholders as well as surplus funds that may be used as a buffer for future adverse experience. 2)people under the influence of drugs or alcohol
d) Tax-deductible. D. The benefit is received tax free Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Insurers use this law in order to predict certain types of losses and set appropriate premiums. A) Any distributions from MECs are taxable, including withdrawals and policy loans. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. Numerical identifiers: Each candidate list entry covers both anhydrous and hydrated forms of a substance. The County is administered by a five-member Board of Supervisors who are elected for four-year terms 3)2 death benefit option
Premiums are not tax deductible as a business expense. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. What is an exchange of a whole entire life policy for another? Conditional Contract Which of the following documents must be provided to the policyowner or applicant during policy replacement? 4. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. Daycare is considered to be among these expenses. Insurance is not designed to cover _____________ losses. What type of policy does the insured most likely have? B. Policyholders B. (2), 1)HIPPA
Which of the following is TRUE regarding assignment rights for . The cost of insurance protection is referred to as what? Correct: B. Which of the following is NOT a fraudulent and intentional deception of the truth? All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. M327. D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers D. Accident Which of the following is true regarding the beneficiary designation of the former spouse. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. We participate at both the national and state levels as a leading advocate in the judicial, legislative, and regulatory environment to ensure that Members' concerns are heard by lawmakers on issues that impact medical professional liability. Hazard Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. The following are all true regarding risk management, except: A. D. They can decide when to pay their monthly premiums. All of the following statements about the characteristics of Social Security are true EXCEPT A. A mutual insurance company does not have what? 3)according to the source of annuity income
B. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? The designation will be void/. The policyowner has a variety of options for investment of the cash value. Beneficiary's age is not a suitability factor. C. Domestic Steven prints a pamphlet to advertise his life insurance business. 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. Their premiums are lower \hline (b) Most policies can be renewed without evidence of insurability. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. 6)free-look period-$ back guaranteed. a) Year only. Receipt
The failure to disclose known facts is what? Now Tamara can afford whole life insurance. 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. Where does group-life insurance come from? Chapter 11 - Life Insurance. The insurance provides protection for a specified period of time. Be prepared to justify your answer. b) Promptly forwarding premiums to the insurance company It is the specific cause of loss. Tax-qualified annuities are subject to IRA maximum contribution limits. c. thoughts of harming a neighbor \end{aligned} Which of the following about decreasing term insurance is true? a) Agent's report C. group credit life insurance does not build cash values. Rating codes are assigned to show financial strength or weakness of each company rated Does T-Mobile Insurance Cover Water Damage? 2)Decreasing term(premium is low) declining face value
Past-due interest on a policy loan is added to the total debt. ~~~\text{Advertising expense}&90,000\\ There are 2 parties of the contract- what are they? D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. 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 _________. The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. A __________ represents the insured. &\text { Accumulated depr.-equipment }\\ Which of the following best describes a surplus lines broker? c. It is the failure to use ordinary care.