B) A fiduciary is a producer who handles insurer funds in a trust capacity. When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. C. group credit life insurance does not build cash values. 4. (Choose from the following options) ______________ is defined as restoring the insured to the same financial condition as before the loss. Benefits received are considered income taxable 2)when benefits begin The benefit is subject to the exclusionary rule The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. 3)Minors. Joe, Larry, and Curly own a small business. B. Aleatory contract Funding against financial loss caused by the death of a key employee a) Small employers \end{aligned} Life insurance is unique from other types of insurance in that it could perform the function of cash accumulation. 2)Straight Life Only one party is giving a legally enforceable promise- A one-sided contract is what? See Page 1. -7 pay test is used to determine If a policy is a MEC. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. If there Is a risk of financial loss then there is a what? The policy is issued for one year and may be renewed annually with evidence of insurability. (d) endowment insurance, Rachel needs permanent life insurance. (a) I only (b) II only (c) PV of the family's share of a deceased breadwinner's future earnings. Correct: D. Department of Treasury, The Terrorism Act, which protects consumers by addressing market disruptions and ensuring the continued widespread availability and affordability of property and casualty insurance for a terrorism risk, is a administered by the Department of Treasury. ch2 Flashcards | Quizlet Life expectancy has increased in the U.S. over the last century. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. a) Offering additional coverage to clients PracticeTest Flashcards by Gabriel Martinez | Brainscape B. AccountsreceivableJul1Jul3121,000???? Which risk management type is shifting the risk of loss to a larger homogeneous group? Term-Life policy has what 3 characteristics? B. Misrepresentation (economy). D. Term life. This type of life insurance is called a) Material change The policy does not go into effect until the premium has been collected. D. Concealment The following information is taken from the records of Hammond on November 30 of the current year. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. 3)Alien Insurer. D. Solicit applications on insurer's behalf C. Waiver of Estoppel Pro rata liability applies. 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. C. Risk D. Represent the insured's interest 4)decrease premium paying period. 1) cash value earns interest b) Universal Life The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} All of the following are true about health insurance except: It is a type of tort. Due to climate change, premiums are going up for certain types of insurance, such as flood insurance. C. Certain Risk &\text { Inventory }\\ (a) Interest is credited monthly to a policy's cash value. C. Funding business continuation agreements (c) expired. \end{array} c) Conditional -its a rider A company that does business in another state than incorporated who is owned by policyholders who received dividends when declared and voting rights. ____________ insurer is not a type of insurer. Jul3119,500\begin{aligned} \hline && \text { Jul 1 } & 65,000 \\ a) Accepted accounting principal. All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. (c) face amount of the policy and the legal reserve. &\text { Accounts receivable }\\ Appoint a solicitor as his or her representative All of the following statements about term insurance are true EXCEPT. An agent and an applicant for a life insurance policy fill out and sign the application. Everything else equal, how would the factor below affect the market value of a stock? Agent Sam is using the human life value approach to assess Mary's life insurance needs. exclusions: when the accident occurs within an illness,disease, or mental infirmity. Accidental Death Benefit The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? Liquidity in life insurance refers to availability of cash to the insured through cash values. Executive office It is the specific cause of loss. Total personal income in the United States (in billions of dollars) for selected years from 1960 to 2009 is given in the following table. The accounting records of DVD Sales, Inc., include the following accounts: CashJul15,500???? Life Insurance Basics Flashcards | Quizlet Individuals covered under the policy received a certificate of insurance. b. 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". Breach of warranty 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. 1)physical exam S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. 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. The person who receives the benefit when insured dies. D. group credit insurance must have a suicide clause . A __________ represents the insured. Insurance companies can charge an interest rate based on the policyowner's credit report. A. What is the primary source of info for the underwriting department to determine insurability? A. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. D. The flexible premium. Is claim still paid if there is a misstatement of age or sex? -the insurer sets the terms of the contract and the applicant must adhere to them. InventoryJul1Jul3122,000???? If company pays dividends, then they are a? Which model is the better fit for the data? Taxes, Retirement, and Other Insurance Concep, State Laws, Rules, and Regulations Quizzes, Life Insurance Policy Provisions, Options and, Fundamentals of Financial Management, Concise Edition. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. \text{Sales revenue}&&\$780,000\\ 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. Predicted needs of the family after the insured's death Correct: C. Condition contract, enforceable only under certain conditions. (d) free look provision. Free Standardized Tests Flashcards about Health&Life - StudyStack saalt menstrual disc how to use - evcc-estheticstraining.com Which type of risk involves the possibility of loss or gain? All of the following information about a customer must be used in determining annuity suitability EXCEPT a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . (D The employer is the owner, payor and beneficiary of the policy. b. it frequently includes coverage for losses due to casualty and theft. D. Gender. Which method makes the most sense for her to employ? ~~~\text{Advertising expense}&90,000\\ 2)premium gets lower. d. falsely believing that a spouse has been It requires evidence of insurability for renewal. Which of the following is a physical hazard? A. Foregin If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room? 1. 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? C. Whole life 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. 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. D. Funding against general company financial loss If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. A. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ 2) Binding Reciept. Health insurance decreases your healthcare costs. 2)not payable in conjunction. Which of the following statements about a life insurance policy is (are) true? Cash value is invested in the stock market. Involuntary Risk 5)Survivorship Life Policy (policy holder pays themselves). The debtor does not have an insurable interest in the life of the lender. Universal Life is also known as two things what are they? What is the difference between renewable policy holder & Insurer? 4)annual, Everytime you have a payment due. \hline \text { Jul 31 } & 17,000 1)policy owner can increase/decrease/ or skip premium payments Which of the following best illustrates a 3. D) adding cost of living coverage. B. this insurance is often written in connection with automobile loans. This form of life insurance has fixed premiums and the cash value is not guaranteed. -cash value can lose value. 5)an agreement is set, 1)Level term(cheapest insurance) face value stays the same Carl would like to purchase life insurance. Value-added tax - Wikipedia 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. Unilateral contract. The correct answer is: Maggie's Piano Studio with 1 employee. How much life insurance should Sam advise . b) Copies of illustrations and application The Waiver of Cost of Insurance rider is found in what type of insurance? Prepare a pie chart of on-time delivery performance for last month. b) A producer who handles insurer funds in a trust capacity. when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. D. Claim History -and the right to vote. The cash value of availability to the policyowner b. 1. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? _______ pays dividends to the stock holder. If the insurance carried is less than required, the insurance may not cover the whole loss. Something of value is a __________________. What is the term for a cause of loss, such as the theft of a car? Misrepresentation, Concealment and Deceit are all examples of what? (b) II only D. Accident B. (b) single-parent family. After insurer makes an offer, what must the applicant do? c) 10 years. ~~~\text{Depreciation on sales equipment}&45,000\\ 2)explain any ratings 1) Conditional Reciept and is NOT a party to the contract. 4. C. Application If the corporation collects the policy benefit, then However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. C. Concealment Various life insurance programs for people who served in the military are called ______________? d) Producer. Study with Quizlet and memorize flashcards containing terms like Which of the following would not appear in the asset section of an insurance company's balance sheet? (d) indeterminate-premium whole life. B) They illustrate the nonguaranteed elements of the policy. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. d. It does not require a duty to be owed. B) bonds 3. Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? \text{Accounts Payable} & 104 & 95 & 95 & 97 \\ The total of all requisitions of indirect materials issued during the month is$20,170.00. 2)FCRA(fair credit reporting act) checks MIB report. Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. Free Chapter 1 - Tests.com Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. A persons assets & liabilities at their time of death. Certificate holders may convert coverage to an individual policy without evidence of insurability. Its controller resigned in October 2017. 1) All requirements are met II. a) Lump-sum approach (Medic Information Bureau)? 1)absolute assignment-all rights are assigned B. B. An insured is driving her automobile and strikes a large pothole that . (a) matured. The policy's cash value grows as the investments grow. 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 . They keep a high percentage of any interest earned on their policies 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? Agents and producers must place business through an insurer with the lowest rated An insured becomes disabled at age 22 and can no longer work. b. 1) coverage is permanent A life insurance policy is exchanged for an annuity. -Can't lose value \text { Type I } & \$ 30 & \$ 35 & - \\ \textbf{For the Month Ended October 31, 2017}\\ Is interest always gained in Universal Life Policy? b) Reduced paid-up The following are all true regarding risk management, except: A. 1)Statement of continued good health After examining other manufacturing cost data, you have acquired additional information as follows. Statements in the application that are guaranteed true but later found to be false may result in what? &\text { Cash }\\ All of the following statements about the settlement of a claim are true EXCEPT. What contract characteristic does this describe? -provides income for retirement He would also like to invest in a mutual fund. What characteristic must an annuity have if it is used to accumulate funds in an IRA? Hammond Corporation manufactures televisions. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Correct: B. B. Are insurance company underwriters allowed to discriminate? C. The insured may retain part of a risk through deductibles. -insured can stop paying premiums at certain age or after a period of time By William Lb Qtjetjx, Author of . New York City | Robert Klein | Robert Klein At Yale (1982) | baseball c) Increases annually. What insurance concept is associated with the names Weiss and Fitch? 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. (c) variable life insurance.