all of the following are true of insurance except

There is a minimum guaranteed interest rate on all sub-accounts. 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? An aleatory contract is a contract where the monetary values of the parties performances are________________. (a) capital retention approach Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. Life insurance prodceeds Reinsurance has 2 types of policys, what are they? Round Tree has 100 Type I rooms and 120 Type II rooms. An applicant is denied insurance because of information found on a consumer report. Which of the following best illustrates a Estate conservation Which of the following is usually true of a participating life insurance policy? A. Jul3125,500\begin{aligned} b) Universal Life It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. In an insurance contract, the value that each party gives the other is called the: When an individual faces the risk of economic loss in the event of property damage, this indicates which of the following? Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. The insurer that is transferring the risk to another company is called the ____________ __________. Receipt Prepare a pie chart of on-time delivery performance for last month. B. Nonadmitted An insurer that is incorporated in the same state that they are doing business in is a_____________.? A. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer ~~~\text{Utilities expense}&12,000\\ -guaranteed/fixed/level payment, -Immediate "annuitization phase" -ages 25,28,34,37,40 a) Aleatory &\begin{array}{lr|rr} C. Risk Increasing term B. Insureds current and future income (b) level-premium method Jul3117,000\begin{aligned} The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. A persons assets & liabilities at their time of death. Annually renewable term policies provide a level death benefit for a premium that B) Money collected with respect to an insurance transaction must be held in a position of trust by the producer. When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? When applicant is not the insured ______________ must exist. -pays an additional death benefit if the insured dies from an accident a) Small employers What happens when there is a Misstatement of age or sex? 1. 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 ~~~\text{Advertising expense}&90,000\\ Acceptance A Contract that binds only one party to future performance, is a (n): A. \hline By William Lb Qtjetjx, Author of . A. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} ~~~\text{Direct labor cost}&190,000\\ Agent Sam is using the human life value approach to assess Mary's life insurance needs. A peril \end{array} II. (a) present value of future benefits and the present value of future premiums. &&\\ D. group credit insurance must have a suicide clause . B) The plan is funded by permanent insurance only. Beneficiary's age is not a suitability factor. B. 2)collateral assignment-some or only one right assigned. C. Tax Status D. The policy is a bilateral contract D. Workers compensation. B. (Choose from the following options) B. Life insurance proceeds Which of the following is TRUE regarding assignment rights for . A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? C. A husband or wife has an insurable interest in their spouse Adverse selection is well controlled. Cash values are available in whole life policies. What are some of the questions asked on the application to determine the premium and risk classification of the insured? D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". \\ -receiving dividends(when declared) 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. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. C. Department of State Which of the following statements about limited-payment life insurance is true? Accelerated Living Benefit/Death Benefit is what type of rider? has reached its final destination and can be paid out in full. Benefits received are considered income taxable Department of Defense B) bonds 3. b) Hazard This form of life insurance has fixed premiums and the cash value is not guaranteed. C. Whole life -it pays the double indemnity, 1)accident occurs, person must die within 90 days Premiums are not tax deductible as a business expense d) Paid-up option. (must exist at the time of application). \end{aligned} AccountsreceivableJul1Jul3121,000???? Policyholders 3. 1) premium schedule differ from whole life What are the 3 characteristics of a Mutual Insurance Company? b) The elderly D. Claim History 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. Most policies can be renewed for additional periods without evidence of insurability. -The insurance dept. \textbf{EMPIRE COMPANY}\\ The money in a savings account For example, a claim will be paid only is there has been a covered loss. (d) free look provision. Renew policy holder has an option- THE INSURER DOES NOT. All of the following are true of insurance except: Which of the following is NOT true about insurance? B. All of the following are true of negligence, except: a. A. 2. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? d. falsely believing that a spouse has been b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. Prepare the following details: Mobile number, serial number, or IMEI. It is used to pay off the balance on the mortgage. a. mentally counting backward from 1,0001,0001,000 A life insurance license. $ cant exceed indebtness. I. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, ICEN6003: IC Engines Operation and Constructi. B) Fiduciary refers to a position of trust. 1) preferred risk -Take it or leave it contract II. Various life insurance programs for people who served in the military are called ______________? Errors and Omissions Coverage (E&O) is a name used to describe a type of professional liability insurance. What is a statement in the application guaranteed true in all respects? A debtor has insurable interest in the life of a lender c) Denying coverage after a reasonable investigation has been conducted The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. 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. c) Variable Premium If the initial premium is not paid with the application, the agent will be required to collect the premium at the time of policy delivery. Steven prints a pamphlet to advertise his life insurance business. (b) Cash value accumulation is slow to moderate. Correct: C. Consideration. d) Accumulations are tax deferred. B. Which of the following information about the applicant is NOT included on Part 1 of the application for life insurance. Costs of training a replacement 4) Joint-Life policy(business part) Insurance policy of 2 or more All of the following are true of key person insurance EXCEPT ) The key employee is the insured. If the insurance carried is less than required, the insurance may not cover the whole loss. 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. 3)premium is collected b. 1)temporary The US is the only developed nation without a system of universal healthcare, with a large proportion of its population not carrying health insurance, a . d) An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer. When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? It does not include breach of contract. The applicant's medical background is addressed in Part 2 - Medical Information. c) Needs approach 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". (Hint: Take a look at the Theory of Reasoned Action.). They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} All of the following statement regarding credit life insurance are true, except: A. credit life insurance may be written on either and individual or group basis. -the applicant must always initial the change \end{aligned} The correct answer is: Premiums are typically paid by the lender. d) 50% tax on the amount not distributed as required. B. The gross premium charged must reflect, at least for competitive reasons, the actual cost of providing the insurance. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Cash value is invested in the stock market. (c) both I and II The face amount decreases as the amount owed on the mortgage decreases. A person who negotiates insurance contracts on behalf of an insured. Executive office 3)Increasing term adds face value. 1) Avoiding the risk b) Promptly forwarding premiums to the insurance company Costs of training a replacement Who might receive dividends from a mutual insurer? 3)Alien Insurer. b. B. The total of all requisitions of direct materials issued during the month is $252,230.00. 3) Increasing Term. Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. a) Because the insured is currently not a drug user, his policy will not be affected. Reinsurer Assuming company. -usually mutual fund security The cash value of availability to the policyowner c. Using the payback period, which project should Bill choose? After everything is signed & premium is collected What does the agent give to the policy holder? All of the following are business uses of life insurance EXCEPT 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? B. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. (d) annual premium and the annual policy dividend. B) Passing examination with 75% or higher score. B. IRS has no jurisdiction Modification to a policy is a _______________? Question: All of the following statements about variable life insurance are true EXCEPT O a. An insured becomes disabled at age 22 and can no longer work. -Can't lose value C. Medical Background 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. A company formed in a different country doing business in any state of American who owners are stockholders that receive dividends and have voting rights. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. -receiving dividends(when declared) Insurance is an important tool to manage risks, but often unavailable to poorer households. Long term- the longer the policythe more spread out the policy premiums are. B. (a) renewal provision Which of the following types of insurance policies would perform the function of cash accumulation? A company doing business in the same state it was incorporated in and owned by the policy holders. The 4 characteristics of a universal life policy are? The correct answer is: Maggie's Piano Studio with 1 employee. Yes, all T-mobile insurance plans cover water damage. A ____ contract requires that both parties perform certain duties. Who gets $$money when the policy holder dies? D. An individual has an insurable interest in her or her own life. It is a type of tort. . What type of policy does the insured most likely have? Nonparticipating policy. b) Copies of illustrations and application 1) Competent Parties d) The Medical Information Bureau. Signed waiver of premium 90-180 days. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. c) Premium accountability. 4. Which risk management type is shifting the risk of loss to a larger homogeneous group? compulsion? -Not invested in stock market d) Military personnel. c) 10 years. B. Avoidance Retention, Avoidance, and Transfer are all _________________. - Limited Pay Life 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} a) Types of mutual companies 2)the face amount d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. ~~~\text{Indirect labor cost}&28,000\\ d. The total of all cost sheets completed during the month is $628,880.00. The correct answer is: The premium decreases to zero by the end of the policy period. A. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. Which of the following methods of calculating the amount of life insurance needed takes into account the insured's wages, years until retirement, and inflation? C. Funding business continuation agreements B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. Estimated direct labor costs for next year are$440,000.00. c) Helping insureds to file claims Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. Rating codes are assigned to show financial strength or weakness of each company rated good health D) Obtaining a bachelor's degree. a) No penalties, since the owner is older than 59 Carl would like to purchase life insurance. Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. still matures at age 100, -premium is paid off at one time What happens when a policy is surrendered for its cash value? 1)Whole Life Insurance is considered a transfer of risk. 2)Explain and collect any ratings Which of the following documents must be provided to the policyowner or applicant during policy replacement? Which of the following is an example of liquidity in a life insurance contract? Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. A. a) Agent's report -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? ~~~\text{Rent on factory facilities}&60,000\\ Compensating executives ? 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. -guarantee a stream of income to the person purchasing it known as the annuitant. 3)according to the source of annuity income 2)Variable annuity cash value increases while face value remains the same. C) purchasing family term insurance. A. 2)no cash-value 3) policy builds cash-value and is NOT a party to the contract. 25,500, AccountspayableJul114,500???? -paying for certain time and stop. O b. D) When immediate annuities are used to pay IRA benefits, distributions must begin no later than age 70 in order for the annuitant to avoid penalties. Correct: B. and what two kinds? The policy's cash value grows as the investments grow. All of the following statements about term insurance are true EXCEPT. -provides income for retirement c) Accelerated benefit rider. B. Misrepresentation b) An agent offers to share his commission with a policyholder. 3)Rider expires 60,65,75. 3)Explain any riders or exclusion \textbf{For the Month Ended October 31, 2017}\\ You cannot sell a variable policy without what? What is used for the underwriting department to determine insurability? B) the applicant. A mutual insurance company is owned by who? 10 year level term 3)certified public accountants, Is insurance that is provided by the Federal or State government C. Unilateral contract When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health 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. All of the following statements are true regarding mortgage protection insurance EXCEPT. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. 2)Decreasing term(premium is low) declining face value a) A retail clerk. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? \hline \text { Jul 31 } & 25,500 3. a) Premium amounts and surrender values D. The face amount remains the same throughout the life of the policy. 4)settlement options, 1)stand alone policy Use the indirect method. (c) both I & II (d) neither I or II. 1) insured gets higher amount 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. 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? &\text { Accounts receivable }\\ b) A producer who handles insurer funds in a trust capacity. 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. B. 3)2 Death benefits-(level/increasing) A. 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. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant. Terms that apply to the insurer not the applicant. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). 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. 17,000, InventoryJul122,000???? One sided contract is a ______________ contract. (d) endowment insurance, Rachel needs permanent life insurance. may not be altered by an agent and must clearly state that it is not part of the contract. A conditional or binding receipt is given when an applicant does what? A key person insurance policy can pay for which of the following? All of the following would be exempt from the producer licensing requirements EXCEPT: A) A customer service representative who discusses policies. 1)Level Which term describes the probability of a loss? C. Solicit applications on the insurer's behalf All renewable term policies are accepted without__________ and only with_____ collected. Pro rata liability applies. (a) Interest is credited monthly to a policy's cash value. Insurance producers must ensure that contracts they recommend are in the best interest of the insured. Cash value is the same as ___________ when the policy matures. The __________ branch of the state government influences public policy regarding insurance laws. & \text{ ???? } 2)APS=medical records b. A. D) They must be signed by both the Producer and the applicant. Estate Creation B. The corporation also helps detect and prevent insurer impairments. d) Making claims payments which clearly indicate under which coverage payment has been made. (D The employer is the owner, payor and beneficiary of the policy. Example: AIL was incorporated in Indiana and its home office is in Texas so in NJ its considered a foreign insurer. A monthly deduction is made from a policy's cash value for the cost of insurance protection. ? 1. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. B. a. whole life paid at 65 Rates (b) Any withdrawal of cash value reduces the death benefit. 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} S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. *Both not taxable. 2) form of interest sensitive life insurance(current market conditions influence the cash value) 3. Health insurance decreases your healthcare costs. 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. 1) coverage is permanent a) Accepted accounting principal. Agents and producers must place business through an insurer with the lowest rated 4. A contract between insurer and policy holder. D. Unilateral Contract Misappropriation or illegal withholding of the policyholder's money. _________ is a determination that a statement made as a warranty, or true. Their premiums are lower -tax free accumulation of borrowing. _____________ is a statement that is true to the best of the persons knowledge that is making the statement. 2) standard risk Who are considered to be restricted persons concerning the formulation of an insurance contract. 3 of them? c) Comparisons with similar policies B. The preferred risk classification indicates that an insured is in excellent physical condition and employs healthy lifestyles and habits. \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ Any gain in the policy's cash value is . database of previously life and health insurance applications. Compute DVDs net cash provided by (used for) operating activities during July. Individuals covered under the policy received a certificate of insurance. She has limited income and significant life insurance needs. B. 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.

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