A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. DONT PICK IT!!!!!! (d) They remain level. An annuity whose based on the stock market index? (a) limited-payment whole life insurance What type of policy does the insured most likely have? In this case, the applicant will most likely need to fill out a Statement of Good Health. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. 3,000, AccountsreceivableJul121,000???? A. A SEC registration. C. Conditional contract Address of his principal office If there Is a risk of financial loss then there is a what? B. 1) cash value earns interest 2) Transferring the risk 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? (6). Prior to October 2017, the company had been profitable every month. (a) Evidence of insurability is not required to renew the coverage. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} (b) tax-free exchange provision There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. b) Universal Life Term. B. All of the following statements about term insurance are trueEXCEPTa. ~~~\text{Raw materials purchases}&\$264,000\\ A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. \end{aligned} 3. 2)people under the influence of drugs or alcohol An insured is driving her automobile and strikes a large pothole that . 2)Legal Purpose According to the entire contract provision, what document must be made part of the insurance policy? 3) type of plan they applied for. \end{aligned} Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. C. State Education Waiver Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} Which of the following statements about universal life insurance is true? Flashcards - WA Common Law Practice Exam - FreezingBlue b. it frequently includes coverage for losses due to casualty and theft. c) Variable Premium -the insurer sets the terms of the contract and the applicant must adhere to them. An individual applies for a life policy. 25,500, AccountspayableJul114,500???? Predicted needs of the family after the insured's death ______________ is defined as restoring the insured to the same financial condition as before the loss. The debtor does not have an insurable interest in the life of the lender. \hline What happens when a policy is surrendered for its cash value? In order for the contract or policy to be valid or legal? Level-increasing face value. a) More active. 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. 3)increase the length of coverage Which of the following about the use of ordinary life insurance is true? In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. A. What are the permanent working capital needs of your company? Agent Sam is using the human life value approach to assess Mary's life insurance needs. ________________ are the person who receives benefits payable upon death. Endowments means policy is what(2) things? D. Accident c) Helping insureds to file claims don't pick binding receipt at all on test. Any gain in the policy's cash value is . Rates are considered inadequate when they do not cover projected losses and expenses. (D The employer is the owner, payor and beneficiary of the policy. A. database of previously life and health insurance applications. C. Department of State a) Indeterminate Premium Term-Life policy has what 3 characteristics? Credit life Are insurance company underwriters allowed to discriminate? 2)explain any ratings -Voting. D) Claims result from losses by a peril insured against in an insurance policy. It does not include breach of contract. 4 All of the following statements about term insurance are true EXCEPT ___________ is the persons whose death triggers payment. A _______ __ is the additional premium needed to get covered with high or substandard risk. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. b. Who is not a party to the contract and receives the benefits when the insured dies? A. All of the following statements are TRUE concerning Debtor Groups EXCEPT \hline & \text { Jul 31 } & 19,500 One sided contract is a ______________ contract. \text{Sales revenue}&&\$780,000\\ Final practice questions Flashcards | Chegg.com Correct: A Insurance . A surplus lines broker deals with direct writing companies only What type of term do you think would be least expensive a short term or a long? -usually mutual fund security Applicant pays premium to make agreement. 1 / 25. 14,500 \\ A key person insurance policy will pay for costs of running the business and replacing the employee. a) Material change The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Terms that apply to the insurer not the applicant. & \text { Depr } & 3,000 \\ \end{array} (b) level-premium method See Answer. -it pays the double indemnity, 1)accident occurs, person must die within 90 days D. Concealment A life insurance policy is exchanged for an annuity. Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. ~~~\text{Indirect labor cost}&28,000\\ An Insurance Broker is responsible for what? Which of the following is true regarding the beneficiary designation of the former spouse. Which of the following best describes a surplus lines broker? \text { Type I } & \$ 30 & \$ 35 & - \\ B. Who assumes control over an insurance company's funds and management if it becomes insolvent? \hline \text { Jul 31 } & 3,000 C. Funding business continuation agreements (d) neither I nor II. A contract between insurer and policy holder. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles 1)physical exam Cash value is invested in the stock market. Six Reasons the Loss is Excluded - MyNewMarkets.com Which of the following statements is not correct regarding rates and premiums? when the applicant/owner is not the insured-3rd party Carl would like to purchase life insurance. An Insurance broker is responsible for what? Solved All of the following statements about variable life - Chegg 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. A ____ contract requires that both parties perform certain duties. Reinsurance has 2 types of policys, what are they? To sell variable insurance what must you have? \end{array} 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. 2)quarterly - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. (b) Prepare a correct income statement for October 2017. 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} C. Tax Status (d) free look provision. 4. An insurer or producer may NOT knowingly employ an individual to act in a fiduciary capacity if that individual has been convicted of a felony or crime of moral turpitude within the past Nature of risk Type I rooms do not have wireless Internet access and are not available for the Business rental class. I. All renewable term policies are accepted without__________ and only with_____ collected. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. B) They illustrate the nonguaranteed elements of the policy. All of the following information about a customer must be used in determining annuity suitability EXCEPT Premiums are not tax deductible as a business expense c) To protect the policyowner I. b) 10% for early withdrawal d) Accumulations are tax deferred. 2)the face amount (c) both I & II (d) neither I nor II. 1) the premium amount (b) reduced. The 3 categories of private insurers site of incorporation? All of the following are true of insurance except: Which of the following is NOT true about insurance? c. The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. b) State attorney general (b) single-parent family. and is NOT a party to the contract. Life expectancy has increased in the U.S. over the last century. b) An agent offers to share his commission with a policyholder. 3. exclusions: when the accident occurs within an illness,disease, or mental infirmity. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights Which nonforfeiture option provides coverage for the longest period of time? What are (4) ways annuities are classified? a) Withdrawals are not taxable. The money in a savings account (c) They decrease at a constant rate. What is the primary source of info for the underwriting department to determine insurability? C. They can borrow higher amounts off of their policies All of the following statements are true of liability insurance, EXCEPT The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. 90-180 days. Daycare is considered to be among these expenses. (a) I only (b) II only 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)when benefits begin 2)no cash-value Why?". Correct: C. Consideration. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? 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. A. 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? Or, Bill can invest $9,000 in project B that promises to pay annual end-of-year payments of$1,500, $1,500,$1,500, $3,500, and$4,000 over the next 5 years. C. Whole life What kind of penalty would the IRA owner pay? b) To deter the policyowner from committing suicide -and the right to vote. Whole life policy. \end{array} -Staged intervals 1) preferred risk -receiving dividends(when declared) 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. Insurance is not designed to cover _____________ losses. b) 5 years only. The concept that the insured should not profit from an insurance transaction is called what? Our records show that more than one device is associated with this