(a) I only (b) II only C. Conditional contract Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. 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. Acceptance D. Funding against general company financial loss Correct: B. C) Because an insurance company's strength and stability are two very crucial factors in its sustainability, independent rating services have formed to publish regular updates on the financial integrity of different insurance companies. B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. (c) The number of times the coverage can be renewed is limited. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? 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. Jul3125,500\begin{aligned} good health The applicants(policy owner) D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). Terms that apply to the insurer not the applicant. -tax free accumulation of borrowing. a) Using arbitration when the insured and insurer cannot reach agreement All of the following would be considered to be rebating EXCEPT b) Failure to promptly settle a claim when liability has been clearly established Correct: C. Condition contract, enforceable only under certain conditions. Address of his principal office All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. 90-180 days. An agent has authority to do all of the following, except: A. Countersign insurance contracts C. Certain Risk Annual income When a policy is non-contributory how much is paid? (b) The face amount of the policy is paid if the insured lives to age 65. c) Denying coverage after a reasonable investigation has been conducted ~~~\text{Utilities expense}&12,000\\ c) Helping insureds to file claims D. Alien 1) Family Maintenance(breadwinner) c) An agent offers tickets to a baseball game as an inducement to buy insurance. The correct answer is: The premium decreases to zero by the end of the policy period. 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???? \text{Sales revenue}&&\$780,000\\ (Choose from the following options) When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. Cash values can be borrowed at any time 3)2 Death benefits-(level/increasing) 4 All of the following statements about term insurance are true EXCEPT SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). Modification to a policy is a _______________? After everything is signed & premium is collected What does the agent give to the policy holder? They become permanently disabled \end{array} -Follows all conditions of contract & pays premium, -insurer says how policy works Non-Participating (stock) Life Insurance Policy. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). An__________ represents the insurer. Pure Risk. Which of the following statements about a life insurance policy is (are) true? 2)people under the influence of drugs or alcohol Waive the premium if the INSURED becomes totally disabled. AccountsreceivableJul1Jul3121,000???? What happens when there is a Misstatement of age or sex? All of the following are characteristics of group life insurance EXCEPT. B. The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. A. Foregin 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? D. Funding against general company financial loss. b) Reduced paid-up 1) a policyholder votes on the Board of Directors D. Delivery receipt. Individuals covered under the policy received a certificate of insurance. Social Security is designed to provide a base of economic security B. 3) Equity-Index annuity. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. Misappropriation or illegal withholding of the policyholder's money. d) The policy can be reinstated by paying back all policy loans and premiums. Reinsurance has 2 types of policys, what are they? Claim is still paid with an adjustment to the benefits. a. The cost of insurance protection is referred to as what? Which nonforfeiture option provides coverage for the longest period of time? \hline && \text { Jul 31 } & 111,000 (b) tax-free exchange provision b) To deter the policyowner from committing suicide 3)certified public accountants, Is insurance that is provided by the Federal or State government ch 7 Flashcards | Quizlet (6). D. Premiums paid are deductible as a business expense. (c) face amount of the policy and the legal reserve. 1. Jul313,000\begin{aligned} 2) form of interest sensitive life insurance(current market conditions influence the cash value) Hammond estimates that it will manufacture 5,000 televisions next year. (c) human life value method An insurer that was incorporated in a different state that it is doing business in. 1)cont. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. See Answer. (b) Any withdrawal of cash value reduces the death benefit. 2)attorneys To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. 2)not payable in conjunction. 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. Waiver of Premium- What happens to the insurer? (c) conversion provision Is claim still paid if there is a misstatement of age or sex? Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. There is no limitation on the number of key employee plans in force at any one time B. 3)2 death benefit option According to the entire contract provision, what document must be made part of the insurance policy? (a) present value of future benefits and the present value of future premiums. When will coverage begin? D. Claim History The requirement that producers must account for all insurance funds collected, and without the expressed consent of the insurance company(ies) are not permitted to co-mingle those funds with their own funds is known as 4)defined contribution plans. The penalty is 50% of the shortfall from the required annual amount. d) Older. - Limited Pay Life -the applicant must always initial the change All of the following are true regarding health insurance policies, EXCEPT: A) An agent or producer may not make changes to the policy B) Once issued, a policy may only be changed with the approval of a company officer C) An agent may change an application with the verbal consent of the applicant A. If an insurer finds that an applicant has committed fraud, it can void the contract, provided that the discovery occurs within the first two years of the effective policy date. The companys president is concerned about the accuracy of the income statement. Compensating executives b) The agent's report One sided contract is a ______________ contract. These individuals qualify for lower premiums than those in the other categories. Alex, age 26, purchased a 20- payment whole life insurance policy. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer 2)face amount is set d) The Guaranty Corporation. a) Aleatory The applicant has been shown to be a poor personal credit risk. M327. The benefit is subject to the exclusionary rule See Answer. If you don't have health insurance, you pay all costs for healthcare and medical emergencies. Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. D. The benefit is received tax free. The policy is a contract of adhesion Difference between Universal Life Insurance and Whole Life Insurance? B. Marital Status An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. The cash value of availability to the policyowner Weiss and Fitch are two of these services, although there are more. What are the two options in death benefit options? -receiving dividends(when declared) S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. D. Premiums are tax deductible as a business expense, B. 4)annual, Everytime you have a payment due. a) Payor rider. b) Human life value approach b) Cost of living rider. a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . The corporation also helps detect and prevent insurer impairments. 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____________? 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. An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. a) Because the insured is currently not a drug user, his policy will not be affected. 1) All requirements are met 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 whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? \text { Type II } & \$ 20 & \$ 30 & \$ 40 Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? &\text { Retained Earnings }\\ -Can't lose value 3)riders & exclusions D. Unilateral Contract All of the following are required signatures on a life insurance application EXCEPT. Chapter 4.1 : Life Insurance Flashcards | Chegg.com An insured becomes disabled at age 22 and can no longer work. C. Waiver of Estoppel \text{Less: Operating expenses}\\ 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). After insurer makes an offer, what must the applicant do? 3. The remaining amounts should be charged to selling and administrative activities. Which kind of agent enters into agreements with more than one insurer? (a) limited-payment whole life insurance d) Buyer's Guide. Conditional contract means the policy holder does what? Correct: A. The debtor does not have an insurable interest in the life of the lender. D. Reduction is a method of managing risk. The applicant accepts the invitation by paying the ___________. b) A producer who handles insurer funds in a trust capacity. Which of the following is TRUE regarding assignment rights for . b) Universal Life -cash value options Breach of warranty Credit life cash value increases while face value remains the same. &\text { Accumulated depr.-equipment }\\ 3)semi-annual EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. Predicted needs of the family after the insured's death are used in the needs approach. All of the following statements about term insurance are trueEXCEPTa. 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. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. b) Fiduciary responsibility. A. 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? \end{array} An annuity is exchanged for another annuity. c) Misrepresentation All of the following are business uses of life insurance EXCEPT What contract characteristic does this describe? Whole life policy. \end{array} C. Payment of premium Applicant pays premium to make agreement. C. A surplus lines broker accepts business only from non- resident agents Chapter 11 - Life Insurance. the willful holding back or secretion of material facts pertinent of the issuance of insurance or a claim. What will probably happen? The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded 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) 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. -birth of child. 2)Variable annuity B. Avoidance The 3 categories of private insurers site of incorporation? 2. a. whole life paid at 65 A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called 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. & \text { Depr } & 3,000 \\ All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. (c) PV of the family's share of a deceased breadwinner's future earnings. ~~~\text{Rent on factory facilities}&60,000\\ - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. D) Insurance covers intentional losses as well as unintentional. . B. -the premiums are paid for a limited time only. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. D) Obtaining a bachelor's degree. Healthcare in the United States - Wikipedia Empire Company is a manufacturer of smart phones. (b) reduced. B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. An agent and an applicant for a life insurance policy fill out and sign the application. (a) matured. A. Receipt The policy is a conditional contract They keep a high percentage of any interest earned on their policies Compute DVDs net cash provided by (used for) operating activities during July. -Staged intervals All of the following statements about universal life insurance are true EXCEPT -receiving dividends(when declared) D. The face amount remains the same throughout the life of the policy. d) 50% tax on the amount not distributed as required. Which is generally true regarding insureds who have been classified as preferred risks? Which of the following is NOT an example of a business use of Life Insurance? Correct: D. A surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. b) Policyholder a) Types of mutual companies A surplus lines broker deals with direct writing companies only The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. -ages 25,28,34,37,40 A. The failure to disclose known facts is what? 4)Consumer report=credit, -shorter time span for paying premiums 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. Correct: B. B) In insurance, fraud is the intentional misrepresentation of material information that is crucial when deciding whether or not to write a contract for an applicant. \hline \text { Jul 31 } & 3,000 In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. ($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?" -Prepays portion of face amount if diagnosed with terminal illness. When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health A SEC registration. (b) II only A. (must exist at the time of application). Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. Steven prints a pamphlet to advertise his life insurance business. Effects of climate change - Wikipedia Premiums are taxable to the employee The designation will be void/. c) Accelerated benefit rider. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. C. The benefit is received as taxable income Abortion in the United States - Wikipedia The NAAR for a life insurance policy is the difference between the