Exclusions always exist, and there is a reason for each one. (c) variable life insurance. Address of his principal office B. The correct answer is: Maggie's Piano Studio with 1 employee. Exclusion Categories -Prepays portion of face amount if diagnosed with terminal illness. Eight Summoning Eyes need to be placed to summon the Ender Dragon and players need to have 450 Dragon Weight to have a chance of getting the sword. Which of the following statements regarding the taxation of Modified Endowment Contracts is FALSE? 4)underwriting is complete (c) two-income earner family. &\text { Retained Earnings }\\ True or False: Under the Financial Responsibility Law, you are required to have insurance on any motor vehicle you own or drive, except motorcycles Policyholders Adverse selection is well controlled. -cash value options Which of the following about a VUL insurance policy is (are) true? Correct: Misrepresentation, False statement contained in the application, An intentional deception of the truth in order to induce another to part with something of value or to surrender a legal right. A) loss reserves 2. Does T-Mobile Insurance Cover Water Damage? Beneficiary's age is not a suitability factor. b) Conditional receipt D. Term life. -the applicant must always initial the change \text { Room } & \text { Super Saver } & \text { Deluxe } & \text { Business } \\ The face amount decreases as the amount owed on the mortgage decreases. What contract characteristic does this describe? Explanation: (Life Insurance Policy Provisions, Options and Riders) A family term rider will provide term life insurance on a spouse and children. In a conditional receipt if the policy holder dies before delivery of the policy what has to happen for the benefits to be paid? Height Weight and Health conditions. All of the following are characteristics of group life insurance EXCEPT. Term. Funding against financial loss caused by the death of a key employee B. Aleatory contract What is NOT invested in the stock market but pays you interest? 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 Which type of life insurance makes sense for someone in this situation? B) Fiduciary refers to a position of trust. D. Solicit applications on insurer's behalf -7 pay test is used to determine If a policy is a MEC. a) Lump-sum approach Participating policy. Applicant pays premium to make agreement. Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . In terms of social security, what is the name for the time period after the youngest child of a family turns 16 and before the surviving spouse may start receving retirement benefits? All of the following statements about term insurance are true EXCEPT. d) Paid-up option. 3)Explain any riders or exclusion \hline \text { Jul 31 } & 25,500 The following information is taken from the records of Hammond on November 30 of the current year. A whole life insurance policy is exchanged for a term insurance policy. Who would be eligible to obtain SGLI? 1)tax qualified plans 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. It's a decreasing term insurance. 2)the face amount A. \\ When a insurance company(insurer) has too many risks exposed to loss it seek another company(reinsurers) to insure them. \textbf{Income Statement}\\ All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. database of previously life and health insurance applications. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of: A. I. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. \end{array} \\ C. Whole life 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? What type of policy does the insured most likely have? RetainedEarningsDividend19,000Jul1NetIncJul3165,00065,000111,000. Whats the cheapest type of permanent insurance? 3)Alien Insurer. ~~~\text{Advertising expense}&90,000\\ Which nonforfeiture option provides coverage for the longest period of time? A policy summary usually includes all the listed information, and must be delivered along with a new policy. C. Concealment also known as acceptance. Renew policy holder has an option- THE INSURER DOES NOT. Why do most states have a waiting period for couples applying for marriage licenses? The issuance of a binder is the result of the ___________________ of an offer. Mutual life policy. 1) mentally incompetent persons Benefits received are considered income taxable The cost of a living rider is calculated by what? What are (4) ways annuities are classified? 10 year level term The issuance of a _________ is the result of the acceptance of an offer. Conditional Contract All of the following groups may purchase group health insurance coverage, EXCEPT: Groups must have at least two employees to be eligible for group insurance coverage. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. 2) premiums do not change Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. 2)APS=medical records d) 15 years. \text{Accounts Receivable} & 199 & 96 & 99 & 604 \\ b. b. Whole life policy. 1. Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? Terms that apply to the insurer not the applicant. 2)Straight Life B. Avoidance The 7 paytest is used to determine if a policy is a _______? An individual applies for a life policy. A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. \hline & \text { Jul 31 } & 19,500 d) Military personnel. Correct: A. C) the proposed insured. *Both not taxable. A SEC registration. Rates. (a) I only (b) II only A surplus lines broker deals with direct writing companies only What is the primary source of info used to determine insurability by the underwriting department? D. The face amount remains the same throughout the life of the policy. (3), WHat is the difference between universal and whole life policies? Domestic Insurer 1) Competent Parties What happens when a policy is surrendered for its cash value? A state administered health insurance for the needy? 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) both I & II (d) neither I or II. All of the following would be considered to be rebating EXCEPT Statement of good health It does not include breach of contract. The following are all true regarding risk management, except: A. What type of interest does universal life have? a. mentally counting backward from 1,0001,0001,000 All of the following are true of negligence, except: a. b. (c) Interest credited to a policy's cash value is taxable to the policyowner in the year credited. D) adding cost of living coverage. c) 10 years. Tamara purchased a term insurance policy when she had high life insurance needs and limited income. The storage of flammables in a fireproof container. ~~~\text{Indirect labor cost}&28,000\\ To sell variable life insurance policies, an agent must receive all of the following EXCEPT The policyowner has a variety of options for investment of the cash value. a) Small employers a) Material change d) Decreases annually. The total of all requisitions of indirect materials issued during the month is$20,170.00. (d) indeterminate-premium whole life. Round Trees management makes a forecast of the demand by rental class for each night in the future. C. Department of State a) Agent's report Estimated direct labor costs for next year are$440,000.00. \underline{\hspace{40pt}}. (c) PV of the family's share of a deceased breadwinner's future earnings. An agent told Carl about a form of life insurance in which Carl could select where the savings component is invested. What is the term for a cause of loss, such as the theft of a car? Accidental Death Benefit In addition, they provide financial support for Tom's aged father and Nancy's aged mother. and is NOT a party to the contract. 2) form of interest sensitive life insurance(current market conditions influence the cash value) 5)coverage begins insured is always the borrower & the beneficiary=lender It is a type of tort. What are the two options in death benefit options? Jul3125,500\begin{aligned} Jul313,000\begin{aligned} Tax-qualified annuities are subject to IRA maximum contribution limits. (d) free look provision. C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. a) The policyholders or stockowners of the company a) Accepted accounting principal. C. Domestic CPI (consumer price index) without evidence. 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. D. Viatical settlement. &\text { Cash }\\ In the pamphlet, he includes the full name of his insurance agency and the type of insurance that he offers. All of the following statements about term insurance are trueEXCEPTa. Pro rata liability applies. C) They must contain a warning that actual results may vary. 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. C. The policy is an aleatory contract A policy that does not pay dividends to policyowners is a B. AccountspayableJul1Jul3114,500??? Rates When applicant is not the insured ______________ must exist. A) the agent. B. A producer wishing to appeal the final order of the commissioner would appeal to???? b) Unilateral 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. The Aspect of the Dragons is obtained by defeating any Ender Dragon in the Dragon's Nest (except Superior) located at the bottom of The End. An insurer that is incorporated in the same state that they are doing business in is a_____________.? d. falsely believing that a spouse has been Agents and producers must place business through an insurer with the lowest rated a) A retail clerk. The NAAR for a life insurance policy is the difference between the D. The ratings are available to the public -Follows all conditions of contract & pays premium, -insurer says how policy works C. Countersign insurance contracts A. B. IRS has no jurisdiction Most agents try to collect the initial premium for submission with the application. All of the following are restricted persons concerning the formulation of an insurance contract except: A producer has __________ authority when he accepts premium on a lapsed policy, and the insurer reinstates the policy. What limitations might this model have for predicting consumer's attitudes and purchase behavior towards Cream Silk? M327. The person who receives the benefit when insured dies. ?19,500, Accumulateddepr.-equipmentJul155,000Depr3,000Jul3158,000\begin{aligned} C. Waiver of Estoppel All of the following characterize term life insurance, EXCEPT: Select one: a. With a little work, an unused office area could be converted to a rental room. A __________ represents the insured. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. (b) They increase at a decreasing rate. Contract of adhesion C. A husband or wife has an insurable interest in their spouse What constitutes the acceptance of an offer? B. B) bonds 3. (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? CashJul1Jul315,500???? & &&\textbf{ Quarter } \\ 1) cash value earns interest (2), The current market will influence the cash value Are insurance company underwriters allowed to discriminate? Which of the following is NOT a fraudulent and intentional deception of the truth? Daycare is considered to be among these expenses. A. contract of adhesion When parties to a contract exchange unequal amounts of money, this is said to be what type of contract? Certificate holders may convert coverage to an individual policy without evidence of insurability. -But pays you interest, 1)Fixed annuity Arrest History. The debtor does not have an insurable interest in the life of the lender. A person who negotiates insurance contracts on behalf of an insured. How does having children affect the decisions that couples must make when considering a divorce? &\text { Inventory }\\ e. The total of costs recorded on all sales invoices for the month is$654,052.00. 2)face amount is set (d) paid-up. (b) Prepare a correct income statement for October 2017. (b) tax-free exchange provision "Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. 3)riders & exclusions A policy summary D. Speculative Risk IRS classification of a policy that is overfunded? (c) They decrease at a constant rate. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. C) An insurance contract must contain a copy of the original application. C. Funding business continuation agreements Correct: B. The agent a) Premium amounts and surrender values C. Unilateral contract Which of the following is TRUE regarding assignment rights for . The insurance company may not void the insurance policy for which of the following reasons? When will coverage begin? A color-coded map illustrating the current legal status of elective-specific abortion procedures in each of the individual 50 states of the United States of America; plus U.S. territories and federal district [a] As of January 31, 2023 Illegal Legally unclear or legal but no providers Legal before cardiac-cell activity [b] Legal through 15th week LMP (1st trimester) Legal through 18th week LMP . What is the primary source of info for the underwriting department to determine insurability? Retention, Avoidance, and Transfer are all _________________. 3)Increasing term adds face value. (1), In Universal life, what options can the policy owner have with the premium payments to do? -receiving dividends(when declared) All of the following statements are true of liability insurance, EXCEPT: Answer: liability coverage indemnifies the insured. When the producer exceeds the authority expressed in the agency contract and the insurer does not take action, which type of authority is created? d) The Guaranty Corporation. (a) The insurance provides protection for a temporary period of time. B. Marital Status II. The purpose of an estate clearance fund is to pay all of the following EXCEPT. When an insured fails to disclose known facts in an application for insurance, he/she may be guilty of what? Signed waiver of premium Jul3117,000\begin{aligned} B. Which term describes the probability of a loss? Each policy pays a percentage of the loss based on the percentage of coverage that policy provides. d. The total of all cost sheets completed during the month is $628,880.00. -guaranteed/fixed/level payment, -Immediate "annuitization phase" Whoso. Correct: C. Unilateral contract. After everything is signed & premium is collected What does the agent give to the policy holder? Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). If you don't have health insurance, you pay all costs for healthcare and medical emergencies. Whats the "take it or leave it contract"? Correct: C. Consideration. 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. a) Because the insured is currently not a drug user, his policy will not be affected. C. Independent rating services evaluate and rate the financial ability of insurance companies 1)policy owner can increase/decrease/ or skip premium payments -A Mec will receive unfavorable tax treatment -ages 25,28,34,37,40 3)MIB=records of all previous insurances they had. Correct: A. A. The remaining amounts should be charged to selling and administrative activities. The failure to disclose known facts is what? - 20 pay life-premiums paid for 20 years and paid up at 65 Which is generally true regarding insureds who have been classified as preferred risks? 4. What are the temporary needs? 4)Explain the policy and its provisions 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. 2)administered charge The death benefit varies according to investment experience. Round Tree has 100 Type I rooms and 120 Type II rooms. The employer is the owner . \hline & \text { Jul 1 } & \begin{array}{r} -its a rider d) Primary and secondary beneficiary designations. b) Hazard ? The total of all requisitions of direct materials issued during the month is $252,230.00. Its controller resigned in October 2017. \hline \text { Jul 31 } & 3,000 D. Funding against general company financial loss. Pure risk c) Policy loans are taxable distributions. Appoint a solicitor as his or her representative Life insurance prodceeds Steven prints a pamphlet to advertise his life insurance business. cheating. -it is a type of Rider 1 / 25. Insurance is not designed to cover _____________ losses. -pay for certain time and stop Which of the following is a financial rating service? James purchased yearly renewable term insurance. A contract between insurer and policy holder. There is a limit for a withdrawal and the insurer charges a fee. A. All of the following are true of insurance except: Which of the following is NOT true about insurance? It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. D) The Life and Health Insurance Guaranty Corporation protects Maryland residents who are policyholders, insureds, beneficiaries, annuitants, and assignees of life and health insurance policies, annuities, and supplemental contracts, if the insurer issuing the policies fails to perform its contractual obligations because it becomes impaired. Yes, all T-mobile insurance plans cover water damage. What must exist at the time of the application? 3)Rider expires 60,65,75. An aleatory contract is a contract where the monetary values of the parties performances are________________. b) The agent's report B) Passing examination with 75% or higher score. All of the following statements regarding contracts of indemnity are true EXCEPT a. 4. Which of the following is an example of liquidity in a life insurance contract? c) The inspection report a) Withdrawals are not taxable. For the reported losses of an insured group to become more likely to equal the statistical probability of loss for that particular class, the insured group must become \hline (b) variable life insurance 3)Consideration O b. The penalty is 50% of the shortfall from the required annual amount. Liquidity in life insurance refers to availability of cash to the insured through cash values. Past-due interest on a policy loan is added to the total debt. An__________ represents the insurer. Costs of training a replacement Pure Risk. c. continuous premium whole life (c) The number of times the coverage can be renewed is limited. Costs of training a replacement D) Claims result from losses by a peril insured against in an insurance policy. 4)Consumer report=credit, -shorter time span for paying premiums Insurers use this law in order to predict certain types of losses and set appropriate premiums. 3)they provide insurance to members. D. The policy is a bilateral contract As her friend, you have been asked to review the income statement and make necessary corrections. C. Application 14,500 \\ D. An individual has an insurable interest in her or her own life. d) Loss. The designation will be void/. cash value increases while face value remains the same. D. Alien 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? Which of the following is usually true of a participating life insurance policy? This method of estimating . An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. ($000)CashAccountsReceivableInventoryAccountsPayable1$1001992011042$1009650595Quarter3$10099905954$1006045297, Describe Cream Silk's promotion within the context of the multi-attribute model: Which attribute(s) were central to the promotion and how does the model explain what the company was trying to accomplish with the "Human Hair Quartet?" All of the following statements about ordinary life insurance are true EXCEPT. To sell variable insurance what must you have? d) Limited pay. Correct: B. b) Promptly forwarding premiums to the insurance company 3. 1) All requirements are met The minimum FREE LOOK period is how many days? (a) present value of future benefits and the present value of future premiums. Which of the following documents must be provided to the policyowner or applicant during policy replacement? Concerning insurance, the definition of a fiduciary is A ______ will receive unfavorable tax treatment. B. Insureds current and future income D. group credit insurance must have a suicide clause . Life expectancy has increased in the U.S. over the last century. It is used to help adequacy and equity in rates. Buy-sell agreements are normally funded with a life insurance policy. Each withdrawal, however, is usually charged, and the amount and frequency of withdrawals are usually limited. Correct: D. Concealment. Which of the families below is likely to have the least need for a large life insurance policy? These individuals qualify for lower premiums than those in the other categories. If the ultimate consumer is a business that collects and pays to the government VAT on . D) They must be signed by both the Producer and the applicant. (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. Age, Sex, Occupation, Hobbies, Habits, Smoking or Non-Drug user or Non. The profit per night for each type of room and rental class is as follows: RentalClassRoomSuperSaverDeluxeBusinessTypeI$30$35TypeII$20$30$40\begin{aligned} When does the grace period begin and how long is it? c) Counselor 2)FCRA(fair credit reporting act) checks MIB report. good health Level-increasing face value. Which $50,000 life insurance contract if purchased when the insured was 32, would have the highest cash value when the insured is 50? B) After a claim has been adjusted and is found to be covered under the policy, the insurer must pay the claim upon receipt of a signed proof of loss. b. persistent fear of germs O c. The policyowner has the option of investing the cash value in several investment accounts. This is true whether a property or liability form; and regardless whether the insured is a commercial or personal lines client. The applicants(policy owner) -Voting. 2)interest sensitive A. \textbf{For the Month Ended October 31, 2017}\\ d) All of the above. 2)can be sold as a rider to a whole-life policy. InventoryJul1Jul3122,000???? -then picks a contract. Which of the following statements about limited-payment life insurance is true? D. Represent the insured's interest Hazard A. Foregin 1)temporary -Both parties must follow certain conditions set forth in contract, -IRS classification of a policy that is overfunded B) Human life value approach is determined by the loss of income that would result with the death of the insured, after making adjustments for expenses, inflation, etc. The following are all true regarding risk management, except: A. All of the following statements about term insurance are true EXCEPT. Predicted needs of the family after the insured's death are used in the needs approach. -kids till 21 The applicant's medical background is addressed in Part 2 - Medical Information. Something of value is a __________________. ~~~\text{Selling and administrative salaries}&75,000\\ d) Living need rider. A. 1) preferred risk A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called Most insurance policies contain a specific limit that an insurer will pay for a single claim. Quarterly working capital levels for your firm for the next year are included in the following table. Instructions All of the other statements are true. 1. Reinsurer Assuming company. 1)Level d) Fair Credit Reporting Act. If a change in the application is necessary what is required? b) State attorney general Conditional contract means the policy holder does what? Executive office 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. 1)premium payment b) Failure to promptly settle a claim when liability has been clearly established Which of the following best describes a surplus lines broker? The CAS number shown in an entry is typically .