What are the temporary needs? A. Credit life Legislative advocacy is essential to Physicians Insurance/MedChoice's purpose to protect, defend, and support our Members. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. An annuity is exchanged for another annuity. (c) both I & II (d) neither I nor II. A. Can term insurance be both renewable and convertible? A securities license. AKA-payout phase. Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). What is the term for a cause of loss, such as the theft of a car? A policy that does not pay dividends to policyowners is a ~~~\text{Rent on factory facilities}&60,000\\ They keep a high percentage of any interest earned on their policies A) Any distributions from MECs are taxable, including withdrawals and policy loans. (3), 1)bank trust officer The total of all requisitions of indirect materials issued during the month is$20,170.00. C. The insured may retain part of a risk through deductibles. _________ is a determination that a statement made as a warranty, or true. What type of insurer has no capital stock? C. Hazards Which of the following types of insurance policies would perform the function of cash accumulation? a) Executive offer of the replacing company c) Coverage ends but the policy can be reinstated at any time. A person who negotiates insurance contracts on behalf of an insured. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. ~~~\text{Selling and administrative salaries}&75,000\\ Who assumes control over an insurance company's funds and management if it becomes insolvent? Predicted needs of the family after the insured's death b) State attorney general Rebating is an unfair trade practice and is regulated by law. All of the following statements about term insurance are true EXCEPT. a) Types of mutual companies c) Misrepresentation B. Avoidance Government Relations: New Challenges and the Ongoing Erosion of In a car accident dealing with ADB who covers the passenger? d) Paid-up option. He would also like to invest in a mutual fund. 2) premiums do not change The issuance of a _________ is the result of the acceptance of an offer. 3)semi-annual B. Twisting b. C. Waiver of Estoppel D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. B. The company records manufacturing costs by job number and uses a factory overhead applied rate to charge overhead costs to its products. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. All of the following characterize term life insurance, EXCEPT: Select one: a. 3)Rider expires 60,65,75. The 4 characteristics of a universal life policy are? a) Offering additional coverage to clients (a) universal life insurance. (6). 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. -ages 25,28,34,37,40 a) To limit the insurer's liability after the 2 year waiting period An individual applies for a life policy. After everything is signed & premium is collected What does the agent give to the policy holder? 2)administered charge \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ B. -birth of child. C. it is often experience-rated, with premrums based on expected losses. A. _______ pays dividends to the stock holder. A key person insurance policy will pay for costs of running the business and replacing the employee. All of the following statements about term insurance are trueEXCEPTa. \text{Dividend}& 19,000& \text { Net Inc } & 65,000 \\ The policy is a conditional contract 2. Insurers use this law in order to predict certain types of losses and set appropriate premiums. [Solved] All of the following are true of insurance EXCEPT It transfers Costs of training a replacement D. The policy is a bilateral contract 3)substandard risk. -car accident not in conjunction with an illness 1)temporary Jul3119,500\begin{aligned} -A Mec will receive unfavorable tax treatment a. A) An indeterminate premium reduction policy is a policy in which the premium is guaranteed for an initial period, then the insurer can charge up to a maximum premium charge that is specified in the policy. 2)Variable annuity CashJul1Jul315,500???? D. Represent the insured's interest Insurance is designed to provide protection against which of the following? What constitutes the acceptance of an offer? c) 15% for early withdrawal 3)riders & exclusions Correct: B. 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. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. You cannot sell a variable policy without what? For this amount of production, total factory overhead is estimated to be $396,000.00. 4) 3 components to the premium, The owner and the insured are different people. Being young and healthy means you can skip out on health insurance. Terms that apply to the insurer not the applicant. B. Daycare is considered to be among these expenses. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. Contract or form of ownership is a ______________? Which of the following statements about limited-payment life insurance is true? The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. C. The insurer is always required to pay the . (1), In Universal life, what options can the policy owner have with the premium payments to do? The correct answer is: The premium decreases to zero by the end of the policy period. (d) free look provision. (a) I only (b) II only A whole life insurance policy is exchanged for a term insurance policy, Which of the following will be included in a policy summary? b) Index used by stock companies A) the agent. Tom and Nancy Boyle provide financial support for their two children. Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? Quarterly working capital levels for your firm for the next year are included in the following table. d) Fiscal responsibility. ? -provides income for retirement A producer wishing to appeal the final order of the commissioner would appeal to???? d) Performing reviews of insured's coverage. A. There is no limitation on the number of key employee plans in force at any one time. -If the insured dies, the policy payed out the PRINCIPAL SUM B) Passing examination with 75% or higher score. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. \text{ ???? } Misappropriation or illegal withholding of the policyholder's money. Which of the following best illustrates a It is used to help adequacy and equity in rates. d) Producer. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. All of the other statements are true. Correct: C. Unilateral contract. 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 Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. (c) Most policies can be converted to a permanent life insurance policy. 4. c) Term life when the applicant/owner is not the insured-3rd party &\begin{array}{lr|rr} 2)Explain and collect any ratings D) adding cost of living coverage. b) Cost of living rider. 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. All of the following statements regarding contracts of indemnity are true EXCEPT a. 4)policy matures at age 100. Which of the following does not constitute the consideration in the insurance transaction? -guaranteed/fixed/level payment, -Immediate "annuitization phase" The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Represent the insured's interest Hazard 1) the premium amount Use the indirect method. Which of the following is the best reason to purchase life insurance rather than annuities? An annuity whose based on the stock market index? D. Accident B. -age 100. Flashcards - D1. Accident and Health Insurance Basics - FreezingBlue To ensure suitability of annuity products, producers must obtain relevant information about the consumer's age, income, financial status, tax status, financial experience and objectives. A surplus lines broker deals with direct writing companies only B. IRS has no jurisdiction 2) Transferring the risk ~~~\text{Direct labor cost}&190,000\\ -Not a true insurance company Beneficiary's age AccountspayableJul1Jul3114,500??? When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. D. Offer Flashcards - WA Common Law Practice Exam - FreezingBlue a) Because the insured is currently not a drug user, his policy will not be affected. 1)policy owner can increase/decrease/ or skip premium payments (b) variable life insurance Appoint a solicitor as his or her representative a) Indeterminate Premium All of the following are options for managing risk, except: means of collecting a loss payment from a liable party. -Follows all conditions of contract & pays premium, -insurer says how policy works Despite this, the country has significantly worse healthcare outcomes when compared to peer nations. D. Concealment However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. 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". -paying for certain time and stop. a) Juvenile Life Compensating executives ____________ is the transfer of the right of recovery from the insured to the insurance company. An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. C. Unilateral contract 5)coverage begins (a) limited-payment whole life insurance Chapter 11 - Life Insurance. 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 exclusions: when the accident occurs within an illness,disease, or mental infirmity. A. D. The benefit is received tax free C. The policy is an aleatory contract The policyowner can add to a policy's cash value at any time subject to policy guidelines. Correct: A. Term. What is the primary source of info for the underwriting department to determine insurability? Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. Which of the following about yearly renewable term insurance is true? c) Guides describing company financial integrity -7 pay test is used to determine If a policy is a MEC. 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. Most professional liability insurance policies are written with an occurrence coverage trigger instead of a claims made trigger O c Insureds The policy is a contract of adhesion. An insured becomes disabled at age 22 and can no longer work. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? A FINRA registration. Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. \hline & \text { Jul 1 } & \begin{array}{r} when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. (receive dividends & the right to vote). 1) coverage is permanent d) Making claims payments which clearly indicate under which coverage payment has been made. Warranty 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. 3) Equity-Index annuity. A false statement in the application for insurance is_____________. 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. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer d) Primary and secondary beneficiary designations. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. C) purchasing family term insurance. The correct answer is: Premiums are typically paid by the lender. Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. Accumulateddepr.-equipmentJul1DeprJul3155,0003,00058,000, RetainedEarningsJul165,000Dividend19,000NetInc65,000Jul31111,000\begin{aligned} Payor benefit/Clause is always a _________. 2)the face amount All of the following are characteristics of group life insurance EXCEPT. What happens when a policy is surrendered for its cash value? Which risk management type is shifting the risk of loss to a larger homogeneous group? (Choose from the following options) 3)2 death benefit option Something of value is a __________________. -immediately considered fully paid up C. Funding business continuation agreements The designation will be void/. The insurance company may not void the insurance policy for which of the following reasons? 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 _________. Retention, Avoidance, and Transfer are all _________________. B. What is the primary source of info used to determine insurability by the underwriting department? B. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Correct: C. Concealment, A. still matures at age 100, -premium is paid off at one time Yes, all T-mobile insurance plans cover cracked screens.You will have to pay a deductible fee which will depend on your device model. (b) reduced. a) Year only. Most agents try to collect the initial premium for submission with the application. Who gets $$money when the policy holder dies? \hline & \text { Jul 31 } & 58,000 Benefits received are considered income taxable &\text { Retained Earnings }\\ I. B. Insureds current and future income ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} 2)interest sensitive Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Solved All of the following statements about universal life - Chegg Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. &\begin{array}{l|lr} If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? Jul3125,500\begin{aligned} *Both not taxable. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. Originating policy C. group credit life insurance does not build cash values. Adverse selection is well controlled. b) Universal Life 4. \end{aligned} c. Premiums may be raised at renewal d. Group term insurance may cover the . C. Department of State 3)they provide insurance to members. The __________ branch of the state government influences public policy regarding insurance laws. (2), The current market will influence the cash value A. B. The Boyle family can be described as a b) Adjustable life 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. ? 1) preferred-low The applicant's medical background is addressed in Part 2 - Medical Information. D. Delivery receipt. * 50% is paid 3)MIB=records of all previous insurances they had. True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles \end{array} B. D. The face amount remains the same throughout the life of the policy. c) Helping insureds to file claims L4. Life Insurance Policy Provisions Options and Riders 4)defined contribution plans. M327. A. 3)Increasing term adds face value. \end{aligned} a) Aleatory B. (d) indeterminate-premium whole life. A. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. She has limited income and significant life insurance needs. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. -sex doesn't determine eligibility. Which of the following would provide an underwriter with information concerning an applicant's health history? 1. \end{array} 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. 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. Difference between Universal Life Insurance and Whole Life Insurance? C) An insurance contract must contain a copy of the original application. a) More active. c) Needs approach 2)standard-average What type of interest does universal life have? Reinsurance has 2 types of policys, what are they? All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. 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. The cost of a living rider is calculated by what? 1)Level Final practice questions Flashcards | Chegg.com The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. Who might receive dividends from a mutual insurer? Statements in the application that are guaranteed true but later found to be false may result in what? Dividends received by policyholders of a mutual insurer are not taxable. 3)according to the source of annuity income A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights -has cash value invested in the stock market All of the following are true regarding life insurance illustrations EXCEPT. The cash value of availability to the policyowner Estate Creation B. 4)explain policy & provisions 21,000 \\ 17,000, InventoryJul122,000???? 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. d) The insurer will sue the insured for committing fraud.