all of the following are true of insurance except
D. The face amount remains the same throughout the life of the policy. 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. All of the following are business uses of life insurance EXCEPT A policy summary usually includes all the listed information, and must be delivered along with a new policy. 4. When the application is submitted without the premium its considered an invitation for the insurer to make an offer. There is a limit for a withdrawal and the insurer charges a fee. B. (must exist at the time of application). It is legal to list nonguaranteed values in the contract, but they must be specifically labeled as projected, not guaranteed values. Copyright 2009-2022 Tests.com LLC - All Rights Reserved. &&\\ II. 6/1 Quiz: Group Life Insurance Flashcards | Quizlet The storage of flammables in a fireproof container. Correct: D. Concealment. Beneficiary's age D. Viatical settlement. 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. See Answer. It is used to help adequacy and equity in rates. All of the following are true of negligence, except: - AZanswer d) Primary and secondary beneficiary designations. -But pays you interest, 1)Fixed annuity Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? b) Outline of coverage Any gain in the policy's cash value is . The correct answer is: The premium decreases to zero by the end of the policy period. 3)Family Policy(Limited but all fam members paid) c) To protect the policyowner 4)Offer and Acceptance, -direct and identifiable interest in that persons life/as well as financial interest. Height Weight and Health conditions. -The insurance dept. 3,000, AccountsreceivableJul121,000???? Study with Quizlet and memorize flashcards containing terms like All of the following are personal uses of life insurance EXCEPT A. The applicant's medical background is addressed in Part 2 - Medical Information. All of the following are true for indemnity insurance except that: a. premiums are based on separate risk pools often organized by employers. Address of his principal office D. Unilateral Contract (c) PV of the family's share of a deceased breadwinner's future earnings. 4. d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. B) Underwriters. 2. All of the following statements concerning coinsurance are true, EXCEPT . 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 Term. -If the insured dies, the policy payed out the PRINCIPAL SUM (a) renewal provision An Insurance broker is responsible for what? Life Insurance Flashcards - Cram.com In order for the contract or policy to be valid or legal? c) Fixed premium Warranty Waive the premium if the INSURED becomes totally disabled. All of the following are characteristics of group life insurance EXCEPT. 2) form of interest sensitive life insurance(current market conditions influence the cash value) b) State attorney general ______________ is defined as restoring the insured to the same financial condition as before the loss. 1)physical exam What type of insurer has no capital stock? All of the following statements about term insurance are true EXCEPT. The insured agrees to maintain insurance equal to some specified percentage of the value of the property. The 4 characteristics of a universal life policy are? A monthly deduction is made from a policy's cash value for the cost of insurance protection. -receiving dividends(when declared) 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. D) Obtaining a bachelor's degree. With a little work, an unused office area could be converted to a rental room. A whole life insurance policy is exchanged for a term insurance policy. 1. 2)collateral assignment-some or only one right assigned. (a) limited-payment whole life insurance -then picks a contract. b. 1)Level d. The total of all cost sheets completed during the month is $628,880.00. WorkinProcessFactoryOverheadCash$229,040.0078,960.00250,558.00EmployeeIncomeTaxPayableSocialSecurityTaxPayableMedicareTaxPayable$33,880.0019,096.004,466.00. Insurance is designed to cover both intentional and unintentional losses. ch2 Flashcards | Quizlet B) One step in the investigation of a claim is to determine whether the policy was in force when the loss occurred. A FINRA registration. She has limited income and significant life insurance needs. the underwriting process is approved for: Question: All of the following statements about professional liability insurance are true, EXCEPT: Select one: O a. B. this insurance is often written in connection with automobile loans. Credit life B. The __________ branch of the state government influences public policy regarding insurance laws. \end{aligned} \end{array} b) Adjustable life C. Concealment when the company earns a profit and elects to share these profits, they pay a dividend to the policyholders or shareholders. Universal Life is also known as two things what are they? D. The policy is a bilateral contract 2)premium gets lower. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? 1.1K 64K views 1 year ago In this video I show you how to one shot Liquidity in life insurance refers to availability of cash to the insured through cash values. C. Certain Risk What (5) Factors for GIO & GIB. whose covered? c) Variable Premium \end{aligned} D. Accident Their premiums are lower C. The insurer is always required to pay the . When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. D. An individual has an insurable interest in her or her own life. (a) capital retention approach b) Coverage ends and the policy cannot be reinstated. a) The policy can be converted to term coverage. C. Unilateral contract D. They can decide when to pay their monthly premiums. _____________ is an employer paid disability and health insurance coverage that covers job related illnesses or injuries. Estimated direct labor costs for next year are$440,000.00. I. Alex, age 26, purchased a 20- payment whole life insurance policy. All of the following statements are true of liability insurance, EXCEPT Mutual life policy. There is a minimum guaranteed interest rate on all sub-accounts. 1) cash value earns interest a) To limit the insurer's liability after the 2 year waiting period C. Application 4. \text { Type II } & \$ 20 & \$ 30 & \$ 40 An applicant is denied insurance because of information found on a consumer report. D) Insurance covers intentional losses as well as unintentional. Which risk management type is shifting the risk of loss to a larger homogeneous group? C. Whole life A) They must be given to all Life insurance applicants. 1) Avoiding the risk 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 D) Obtaining a bachelor's degree. Domestic Insurer D) Claims result from losses by a peril insured against in an insurance policy. Which of the following is a physical hazard? An insured becomes disabled at age 22 and can no longer work. Predicted needs of the family after the insured's death d) Accumulations are tax deferred. Participating policy. Which of the following is an example of liquidity in a life insurance contract? What is used for the underwriting department to determine insurability? D) real estate, Under one method of estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. C. The insured may retain part of a risk through deductibles. D. Solicit applications on insurer's behalf There are 2 parties of the contract- what are they? The face amount decreases as the amount owed on the mortgage decreases. Which of the following documents must be provided to the policyowner or applicant during policy replacement? c) Smaller. c) Comparisons with similar policies 2)interest sensitive when the applicant/owner is not the insured-3rd party Involuntary Risk 3) Equity-Index annuity. Rating codes are assigned to show financial strength or weakness of each company rated D. The benefit is received tax free. b) Policyholder The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. Solved All of the following are true for indemnity insurance | Chegg.com \hline && \text { Jul 1 } & 65,000 \\ 4)underwriting is complete A. (2), 1)HIPPA The total factory payroll for the month according to the payroll register is $308,000.00, distributed as follows. A. 2)the face amount Renew policy holder has an option- THE INSURER DOES NOT. Agents and producers must place business through an insurer with the lowest rated Social Security is designed to provide a base of economic security B. C. Social Security works exactly same as private insurance. 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? A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. Chapter 3 part 1 Flashcards | Quizlet Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? Statements in the application that are guaranteed true but later found to be false may result in what? An Applicant inaccurately representing information on the application is guilty of: A. -its a rider &\text { Accumulated depr.-equipment }\\ (Choose from the following options) a. mentally counting backward from 1,0001,0001,000 2)face amount is set C. A surplus lines broker accepts business only from non- resident agents Life expectancy has increased in the U.S. over the last century. B) According to the law of large numbers, the larger a group becomes, the easier it is to predict losses. Correct: D. Represent the insured's interest, All of the following statements regarding financial rating services are correct, except. c. Premiums may be raised at renewal d. Group term insurance may cover the . 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. \end{array} 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. -assignor=assignee An annuity whose based on the stock market index? 2)people under the influence of drugs or alcohol Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values, and death benefits for specific years? 1. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50?