all of the following are true of insurance except

An aleatory contract is a contract where the monetary values of the parties performances are________________. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. Legal Purpose 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 A mutual insurer has no stock, and is owned by the policyholders. Appoint a solicitor as his or her representative c) Term life If there Is a risk of financial loss then there is a what? c) Copy of the original application A policy that does not pay dividends to policyowners is a After insurer makes an offer, what must the applicant do? AccountspayableJul1Jul3114,500??? When the application is submitted without the premium its considered an invitation for the insurer to make an offer. Limited-Pay Life & Single-Premium Policies? d) Graded Premium. All of the following statements concerning coinsurance are true, EXCEPT . Which of the following statements is not correct regarding rates and premiums? ~~~\text{Raw materials purchases}&\$264,000\\ A whole life insurance policy is exchanged for a Universal life insurance policy. Various life insurance programs for people who served in the military are called ______________? Use the indirect method. c. Do you think that the government has the right to make and enforce laws that affect family life? Rates. D. Breach of warranty (b) Most policies can be renewed without evidence of insurability. What (5) Factors for GIO & GIB. whose covered? 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 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? (b) Cash value accumulation is slow to moderate. 3)riders & exclusions (2), 1)HIPPA If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? B. D. Accident Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. Insurance is designed to provide protection against which of the following? Who might receive dividends from a mutual insurer? A. Correct: D. Concealment. 3) Ordinary. 2)Procures insurance 4 itself from another insurer, The tax benefit of annuities is tax deferred growth. The insurance provides protection for a specified period of time. b) Reduced paid-up CPI (consumer price index) without evidence. -low commissions Journalize the entry to transfer the total of all cost sheets completed from Work in Process to Finished Goods. The agent The CAS number shown in an entry is typically . All of the following are required signatures on a life insurance application EXCEPT. Modification to a policy is a _______________? Where does group-life insurance come from? The money in a savings account It requires evidence of insurability for renewal. \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ D. Financial Experience. Correct: B. 1) Conditional Reciept WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. (c) conversion provision D. group credit insurance must have a suicide clause . A Contract that binds only one party to future performance, is a (n): A. (c) Most policies can be converted to a permanent life insurance policy. (b) reduced. c) Comparisons with similar policies Carl would like to purchase life insurance. Round Trees management makes a forecast of the demand by rental class for each night in the future. The application is the basic source of information an insurer uses in the risk selection process. \end{aligned} C. The benefit is received as taxable income Mutual life policy. The primary purpose of buying an annuity is? All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. A company doing business in a different state than it is incorporated in and the stockholders/share holders have ownership rights C. Buy-Sell agreements are normally funded with a life insurance policy D. Funding against general company financial loss. (d) free look provision. B) Fiduciary refers to a position of trust. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? C. Insured's annual expenses If you don't have health insurance, you pay all costs for healthcare and medical emergencies. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. 2)the face amount -it pays the double indemnity, 1)accident occurs, person must die within 90 days 1) All requirements are met What is an exchange of a whole entire life policy for another? C. Solicit applications on the insurer's behalf \textbf{Income Statement}\\ d. The total of all cost sheets completed during the month is $628,880.00. All of the following statements about ordinary life insurance are true EXCEPT. -policyowners right provision When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. 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? How much life insurance should Sam advise . 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. \end{array} (d) paid-up. 1 / 25. c. Social Security is designed to provide a base of economic security B. The total of all requisitions of indirect materials issued during the month is$20,170.00. Being young and healthy means you can skip out on health insurance. B. Buy-Sell Agreements pay in the event of a medical emergency The correct answer is: The premium decreases to zero by the end of the policy period. When an insurance policy is not clear, the court will usually interpret in favor of the insured because of which characteristic? Whats the cheapest type of permanent insurance? D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). 4. 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. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? The death benefit varies according to investment experience. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. & \text{ ???? } Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? 2) premiums do not change (Choose from the following options) C. Payment of premium An agent that enters into agreements with more than one insurer is called an: A _______ represents the insured in dealing with insurance companies. Hazard b) Human life value approach The correct answer is: Premiums are typically paid by the lender. a) Offering additional coverage to clients Originating policy 1)absolute assignment-all rights are assigned a) Withdrawals are not taxable. Buy-sell agreements are normally funded with a life insurance policy. The applicant's medical background is addressed in Part 2 - Medical Information. Business partners have an insurable interest in each other D. The flexible premium. Which type of risk involves the possibility of loss or gain? An agent has authority to do all of the following, except: A. Countersign insurance contracts Who would be eligible to obtain SGLI? -the insurer sets the terms of the contract and the applicant must adhere to them. What is the primary source of info used to determine insurability by the underwriting department? &\begin{array}{cr|} 1)cont. d) The policy can be reinstated by paying back all policy loans and premiums. A) They must be given to all Life insurance applicants. S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. exclusions: when the accident occurs within an illness,disease, or mental infirmity. A. ___________ is the persons whose death triggers payment. EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017, Salesrevenue$780,000Less:OperatingexpensesRawmaterialspurchases$264,000Directlaborcost190,000Advertisingexpense90,000Sellingandadministrativesalaries75,000Rentonfactoryfacilities60,000Depreciationonsalesequipment45,000Depreciationonfactoryequipment31,000Indirectlaborcost28,000Utilitiesexpense12,000Insuranceexpense8,000803,000Netloss$(23,000)\begin{array}{lcc} 3. A SEC registration. D. The face amount remains the same throughout the life of the policy. -then picks a contract. 1. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? the underwriting process is approved for: 2) form of interest sensitive life insurance(current market conditions influence the cash value) Represent the insured's interest *The insured is diagnosed with terminal & chronicle illness B. (a) They increase at an increasing rate. 2) Transferring the risk B. IRS has no jurisdiction What is the term for a cause of loss, such as the theft of a car? B. B) bonds 3. A. 2)collateral assignment-some or only one right assigned. Cash Accumulation C. Buy-Sell agreement D. Survivor Protection, All of the following are true of key person insurance except A. 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. 90-180 days. a. -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? when the applicant/owner is not the insured-3rd party Whoso. A. Who gets $$money when the policy holder dies? (c) both I & II (d) neither I or II. D. Premiums are tax deductible as a business expense, B. D. Concealment (c) face amount of the policy and the legal reserve. b) Hazard (b) II only 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. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. b. 3)2 Death benefits-(level/increasing) The demand forecast for a particular night is 130 rentals in the Super Saver class, 60 rentals in the Deluxe class, and 50 rentals in the Business class. 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. 2)Legal Purpose D. Unilateral Contract A. d) The Guaranty Corporation. A monthly deduction is made from a policy's cash value for the cost of insurance protection. -Not invested in stock market 4) 3 components to the premium, The owner and the insured are different people. 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. c) Variable Premium If the ultimate consumer is a business that collects and pays to the government VAT on . D. Workers compensation. A. Insurance is considered a transfer of risk. ? C. Medical Background There is a limit for a withdrawal and the insurer charges a fee. Misrepresentation, Concealment and Deceit are all examples of what? The cost of a living rider is calculated by what? Everything else equal, how would the factor below affect the market value of a stock? \hline \text { Jul 1 } & \begin{array}{r} Non-Participating (stock) Life Insurance Policy. b) An agent offers to share his commission with a policyholder. 25,500, AccountspayableJul114,500???? B. 1. a) To limit the insurer's liability after the 2 year waiting period (a) universal life insurance. The 7 paytest is used to determine if a policy is a _______? The face amount decreases as the amount owed on the mortgage decreases. 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. c) Helping insureds to file claims A surplus lines broker deals with direct writing companies only Out of 20 yr or 30 yr which policy is less expensive? 2)when benefits begin Universal Life is also known as two things what are they? Tamara purchased a term insurance policy when she had high life insurance needs and limited income. 2)Decreasing Term 1) the premium amount What type of term do you think would be least expensive a short term or a long? An applicant is denied insurance because of information found on a consumer report. b) Distributions before age 59 1/2 incur a 10% penalty on policy gains. 4. B. A. signed waiver of premium -But pays you interest, 1)Fixed annuity Most insurance policies contain a specific limit that an insurer will pay for a single claim. 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____________? (d) They remain level. The insurer that is transferring the risk to another company is called the ____________ __________. A false statement in the application for insurance is_____________. Term life insurance provides the largest amount of coverage for the lowest amount of premium. Inventory balances at the beginning and end of October were: Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. 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 What are two reasons that people deposit money in banks? C. Tax Status Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? \end{aligned} D. Agents report. Term. b) Coverage ends and the policy cannot be reinstated. D. They can decide when to pay their monthly premiums. A mutual insurance company does not have what? &&\\ B. B. The 4 characteristics of a universal life policy are? D) Using misrepresentation to convince a person to cancel an existing policy and buy a new one is called "twisting.". 1) preferred risk c) Conditional An Insurance Broker is responsible for what? A _______ __ is the additional premium needed to get covered with high or substandard risk. 2)Decreasing term(premium is low) declining face value _______ pays dividends to the stock holder. Poor adaptation to climate change further widens the gap between what people can afford and the costs of insurance, as risks increase. &\text { Inventory }\\ c. It is the failure to use ordinary care. 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. -tax free accumulation of borrowing. c) To protect the policyowner Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. 1)Statement of continued good health "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 2)administered charge 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? Healthcare in the United States is far outspent than any other nation, measured both in per capita spending and as a percentage of GDP. Correct: C. Consideration.

all of the following are true of insurance except 2023