all of the following are true of insurance except

Predicted needs of the family after the insured's death 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? A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. A. Originating policy The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. Universal Life is also known as two things what are they? She meets the definition of total disability under Social Security. Accelerated Living Benefit/Accelerated Death Benefit? D. Department of Treasury Free Standardized Tests Flashcards about Health&Life - StudyStack Use the indirect method. and is NOT a party to the contract. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. 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. Is claim still paid if there is a misstatement of age or sex? B. All of the following are true of key person insurance EXCEPT What are the 3 characteristics of a Mutual Insurance Company? All of the following statements about term insurance are true EXCEPT. a) A medical examination If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? c) Helping insureds to file claims The benefit is subject to the exclusionary rule 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? All of the following statements are TRUE concerning Debtor Groups EXCEPT (d) They remain level. D. The face amount remains the same throughout the life of the policy. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 1) Conditional Reciept B. The purpose of an estate clearance fund is to pay all of the following EXCEPT. Correct: C. Unilateral contract. 2)Foreign Insurer C. Domestic Liquidity in life insurance refers to availability of cash to the insured through cash values. A. contract of adhesion Jul313,000\begin{aligned} Company doing business in the state it was incorporated and owned by the stockholders(people who own stock) who received dividends and the right to vote???? M327. B. Which of the following would provide an underwriter with information concerning an applicant's health history? 3)Consideration D. Aleatory contract The shifting of risk of loss to a larger homogeneous group is known as what? d) The policy can be reinstated by paying back all policy loans and premiums. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights c) The inspection report (b) tax-free exchange provision B) They illustrate the nonguaranteed elements of the policy. &\begin{array}{lr|rr} Signed waiver of premium 1. When a policy is contributory how much is paid? b) Outline of coverage 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. InventoryJul1Jul3122,000???? (2), 1)HIPPA \hline \text { Jul 31 } & 17,000 Which of the following statements is not correct regarding rates and premiums? What is an exchange of a whole entire life policy for another? Round Trees management makes a forecast of the demand by rental class for each night in the future. D. They can decide when to pay their monthly premiums. b. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. 2. c) Fixed premium (b) Cash value accumulation is slow to moderate. Whole life policy. Correct: A Insurance . Premiums are not tax deductible as a business expense -marriage Statement of good health 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. (a) universal life insurance. Reinsurance has 2 types of policys, what are they? A SEC registration. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. d. falsely believing that a spouse has been b) Conditional receipt Life insurance proceeds Permanent Insurance have 3 words in common, what are they? C. It's a decreasing term insurance. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Group Life Insurance Flashcards | Chegg.com Upon policy delivery, the producer may be required to obtain any of the following EXCEPT -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. Waiver c) The policy will be voided. AKA-payout phase. 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? 2. Which kind of agent enters into agreements with more than one insurer? Business partners have an insurable interest in each other The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. the underwriting process is approved for: An insurer that was incorporated in a DIFFERENT STATE that it is doing business in is a _____________??? Only one party is giving a legally enforceable promise- A one-sided contract is what? A FINRA registration. 2)FCRA(fair credit reporting act) checks MIB report. \text { Type I } & \$ 30 & \$ 35 & - \\ A) Any distributions from MECs are taxable, including withdrawals and policy loans. 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. and what two kinds? D. An individual has an insurable interest in her or her own life. (Choose from the following options) Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? A policy summary 2)Straight Life The death benefit varies according to investment experience. B. D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". D) Obtaining a bachelor's degree. Jason Mackenzie Alexander argues morality is a form of social technology - it is context specific and it can go out-of-date 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. All of the other statements are true. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become C. A husband or wife has an insurable interest in their spouse 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? ~~~\text{Raw materials purchases}&\$264,000\\ A. 2)no cash-value \end{array} \\ \text{Sales revenue}&&\$780,000\\ B. Estate Creation B. 1) premium schedule differ from whole life 1)premium payment \textbf{EMPIRE COMPANY}\\ 90-180 days. These individuals qualify for lower premiums than those in the other categories. All renewable term policies are accepted without__________ and only with_____ collected. Most insurance policies contain a specific limit that an insurer will pay for a single claim. (c) human life value method 4)defined contribution plans. a) Using arbitration when the insured and insurer cannot reach agreement c) Variable Premium Increasing term c) Denying coverage after a reasonable investigation has been conducted Insurance companies can charge an interest rate based on the policyowner's credit report. B) A fiduciary is a producer who handles insurer funds in a trust capacity. Address of his principal office Its controller resigned in October 2017. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Who might receive dividends from a mutual insurer? C) They must contain a warning that actual results may vary. ch2 Flashcards | Quizlet Insurance transfers risk but it does not__________ risk. The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. Waiver of Premium- What happens to the insurer? Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. B. 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? All of the following characterize term life insurance, EXCEPT: Select one: a. Which model is the better fit for the data? The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. An applicant is denied insurance because of information found on a consumer report. If company pays dividends, then they are a? Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. All of the following are required signatures on a life insurance application EXCEPT. If the corporation collects the policy benefit, then 4. 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? Whoso. Health insurance decreases your healthcare costs. What type of insurer has no capital stock? Insurance is designed to cover both intentional and unintentional losses. d) Paid-up option. d) Policy dividends. D. Speculative Risk A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. B. Marital Status A whole life insurance policy is exchanged for a term insurance policy. 1) Family Maintenance(breadwinner) 4) Joint-Life policy(business part) Insurance policy of 2 or more Which of the following is a physical hazard? Which of the following statements about endowment policies is true? Because the insurance company must pay claims and the insured must comply with the policy terms, the insurance contract is considered which of the following types of contracts? Their premiums are lower Question: All of the following statements about variable life insurance are true EXCEPT O a. A debtor has insurable interest in the life of a lender The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? What type of policy does the insured most likely have? Rates are considered inadequate when they do not cover projected losses and expenses. A peril d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. don't pick binding receipt at all on test. A) They must be given to all Life insurance applicants. Life insurance prodceeds The companys president is concerned about the accuracy of the income statement. Insurance is designed to cover both intentional and unintentional losses. b) The agent's report In this case, the applicant will most likely need to fill out a Statement of Good Health. D. Gender. A. Terms that apply to the insurer not the applicant. Misrepresentation, Concealment and Deceit are all examples of what? How do premiums for yearly renewable term insurance change as an insured gets older? 1) All requirements are met When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. (a) I only The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. B. Which of the following is true regarding the beneficiary designation of the former spouse. (d) annual premium and the annual policy dividend. Correct: C. Condition contract, enforceable only under certain conditions. 1 / 25. \end{array} d) Primary and secondary beneficiary designations. Value-added tax - Wikipedia There are 2 parties of the contract- what are they? II. 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. -it is a type of Rider Which is generally true regarding insureds who have been classified as preferred risks? -Not invested in stock market Contract of adhesion Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? Final practice questions Flashcards | Chegg.com The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. b) Fixed income C. The death benefit paid to the beneficiary Correct: C. Consideration. B. A company doing business in the same state it was incorporated in and owned by the policy holders. The issuance of a _________ is the result of the acceptance of an offer. A. Term-Life policy has what 3 characteristics? -A Mec will receive unfavorable tax treatment 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. -the premiums are paid for a limited time only. d) Producer. 25,500, AccountspayableJul114,500???? Steven prints a pamphlet to advertise his life insurance business. D. Reduction is a method of managing risk. a) Payor rider. Chapter 3 part 1 Flashcards | Quizlet B. Benefits received are considered income taxable 3)Minors. \end{array} Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. c) Counselor The face amount decreases as the amount owed on the mortgage decreases. (b) II only All of the following are common characteristics of this coverage EXCEPT &\begin{array}{cr|} 3)MIB=records of all previous insurances they had. (b) face amount of the policy and the total premiums that have been paid. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health C. Medical Background By William Lb Qtjetjx, Author of . In this particular instance the applicant did not commit intentional fraud. Who would be eligible to obtain SGLI? B. If there Is a risk of financial loss then there is a what? \end{aligned} All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 2)face amount is set Appoint a solicitor as his or her representative The penalty is 50% of the shortfall from the required annual amount. A policy that does not pay dividends to policyowners is a &\begin{array}{lr|lr} Which of the following is usually true of a participating life insurance policy? a) The policy can be converted to term coverage. Joe, Larry, and Curly own a small business. The correct answer is: The premium decreases to zero by the end of the policy period. 1) preferred-low b) Coverage ends and the policy cannot be reinstated. \hline \text { Jul 31 } & 3,000 Premiums are taxable to the employee C) A licensee cannot knowingly employ an individual who has been convicted of a felony or crime of moral turpitude within the past 10 years to act in a fiduciary capacity. 21,000 \\ S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. The ___________ controls all rights of the contract. 3)Explain any riders or exclusion Cash value is the same as ___________ when the policy matures.