-birth of child. The cash value available to the policyowner The insurer's promise to pay a covered loss and the insured's payment of the first premium, are examples of: A. Jul313,000\begin{aligned} 2)Increase the face value c. Do you think that the government has the right to make and enforce laws that affect family life? (a) limited-payment whole life insurance c) National Association of Insurance Commissioners (a) present value of future benefits and the present value of future premiums. 1)Level Findefch a Wife,' 'Pnrple and Fine -men,'^The' Day of Temptation,' ' Of Royal Blood,' etc., etc . An Applicant inaccurately representing information on the application is guilty of: A. (a) I only (b) II only a) the risk is transferred to the insurer b)the insured may retain part of the risk through deductibles . Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. The debtor does not have an insurable interest in the life of the lender. b) Index used by stock companies Which of the following is usually true of a participating life insurance policy? To sell variable life insurance policies, an agent must receive all of the following EXCEPT c. Premiums are not tax deductible as a business expense. 2)Variable annuity 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? These individuals qualify for lower premiums than those in the other categories. Home Office- what do the underwriters do. they evaluate 4 things- what are they(4)??? B. Buy-Sell Agreements pay in the event of a medical emergency d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. Which of the following is true regarding the beneficiary designation of the former spouse. (c) both I & II (d) neither I or II. \underline{\hspace{40pt}}. D. The face amount remains the same throughout the life of the policy. b) The elderly * 50% is paid 1) coverage is permanent D. A surplus lines broker deals with admitted carriers only 1)Whole Life Which of the following types of insurance policies would perform the function of cash accumulation? Correct: A. a surplus lines broker places risks with nonadmitted insurers when coverage cannot be placed with admitted insurer carriers. A. contract of adhesion B) the applicant. C. Consideration It is most appropriate when an insured needs lifetime protection. c) Policy loans are taxable distributions. \hline & \text { Jul 1 } & 55,000 \\ c) Helping insureds to file claims What kind of penalty would the IRA owner pay? Which model is the better fit for the data? All of the other statements are true. &\text { Rental Class }\\ B. -provides income for retirement 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____________? b. B. b) Unilateral b) The policy will not be affected. (Choose from the following options) ~~~\text{Depreciation on factory equipment}&31,000\\ The 4 characteristics of a universal life policy are? An underwriter will consider each of the following factors when evaluating a risk, except: A. M327. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). (d) The policyowner can add to a policy's cash value at any time subject to policy guidelines. Exclusions always exist, and there is a reason for each one. A conditional contract requires both the insurer and policyowner to meet certain conditions before the contract can be executed, unlike other types of policies, which put the burden of condition on either the insurer or the policyowner. Rating codes are assigned to show financial strength or weakness of each company rated The issuance of a policy or binder is not part of the consideration element of an insurance contract, it is part of the _______ ________. D) Obtaining a bachelor's degree. D. Department of Treasury What is the MIB? Modification to a policy is a _______________? The primary purpose of buying an annuity is? What type of interest does universal life have? Hazard After insurer makes an offer, what must the applicant do? considers Lloyds of London an Alien insurer C. Premiums are determined by age sex and occupation of each individuals certificate holder. -tax free accumulation of borrowing. C. Unilateral contract c. thoughts of harming a neighbor d) The Guaranty Corporation. &\text { Accumulated depr.-equipment }\\ -immediately considered fully paid up The shifting of risk of loss to a larger homogeneous group is known as what? Which type of life insurance makes sense for someone in this situation? An__________ represents the insurer. All of the following are true about health insurance except: Purchasing health care can help save you from medical bankruptcy. The issuance of a binder is the result of the ___________________ of an offer. It requires evidence of insurability for renewal. 2) profits are returned as dividends a) Universal life -policyowners right provision D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. Which of the following statements is not correct regarding rates and premiums? \text{Less: Operating expenses}\\ B. Marital Status (d) sandwiched family. 5)Survivorship Life Policy (policy holder pays themselves). The Terrorism Risk Insurance Program is administered by which of the following Federal entities? The 3 categories of private insurers site of incorporation? Correct: B. Jul3119,500\begin{aligned} c) Disclosure rule 4)underwriting is complete the underwriting process is approved for: A whole life insurance policy is exchanged for a term insurance policy. Coverage is available in $50,000 increments up to the maximum of $400,000. What are the temporary needs? The correct answer is: Maggie's Piano Studio with 1 employee. A person who negotiates insurance contracts on behalf of an insured. 3)low premiums. -assignor=assignee Limited-Pay Life & Single-Premium Policies? Agent Sam is using the human life value approach to assess Mary's life insurance needs. States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. A life insurance license. A. $ cant exceed indebtness. Annual income Which of the following is NOT an allowable 1035 exchange? Quarter($000)1234Cash$100$100$100$100AccountsReceivable1999699604Inventory20150590552AccountsPayable104959597\begin{array}{lrrrr} D. Offer An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. An annuity whose based on the stock market index? D) When replacement is involved, a producer must perform the following duties: sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. - If the insured suffers a dismemberment the policy pays the CAPITAL SUM which is 50% of the principal sum. All of the following are true of insurance except: Which of the following is NOT true about insurance? d) An agent misrepresents policy benefits to convince a policyowner to replace policies. d. It does not require a duty to be owed. d) Fair Credit Reporting Act. 2. InventoryJul1Jul3122,000???? 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)face amount is set d) Graded Premium. (b) II only The parties in the insurance contract consist of whom? 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? a) Year only. &\text { Accounts receivable }\\ The CAS number shown in an entry is typically . C. Solicit applications on the insurer's behalf (a) I only (b) II only Who appoints the state insurance regulator in many states? -greater potential to grow the cash value but there is no guarantee \end{array} The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. With a little work, an unused office area could be converted to a rental room. Which risk management type is shifting the risk of loss to a larger homogeneous group? Breach of warranty When an agent is handling the premiums that belong to an insurance company, they are acting in a fiduciary capacity. 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 payable }\\ What constitutes the acceptance of an offer? When does the grace period begin and how long is it? Which of the following about yearly renewable term insurance is true? The purpose of an estate clearance fund is to pay all of the following EXCEPT. \text{ ???? } A. 2)interest sensitive 4)explain policy & provisions Involuntary Risk ___________ is the persons whose death triggers payment. \end{array} D. Funding against general company financial loss. A producer wishing to appeal the final order of the commissioner would appeal to???? Surviving family members may experience a reduction in their standard of living if the family breadwinner dies prematurely. c) A person who handles assets or money belonging to others. ~~~\text{Insurance expense}&\underline{8,000}&\underline{803,000}\\ Buy-sell agreements are normally funded with a life insurance policy. b. it frequently includes coverage for losses due to casualty and theft. When applicant is not the insured ______________ must exist. \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ c) Comparisons with similar policies -ages 25,28,34,37,40 Misrepresentation, Concealment and Deceit are all examples of what? Consumer report An Insurance Broker is responsible for what? (2), 1)HIPPA c) Term life The ___________ controls all rights of the contract. (c) human life value method The storage of flammables in a fireproof container. 3)increase the length of coverage Which of the following statements concerning buy-sell agreements is true? -7 pay test is used to determine If a policy is a MEC. *Both not taxable. Weiss and Fitch are two of these services, although there are more. B. Misrepresentation -Not invested in stock market C) Annually renewable term policies provide a level death benefit for a premium that increases each year with the age of the insured. If there Is a risk of financial loss then there is a what?
