all of the following are true of insurance except

An aleatory contract is a contract where the monetary values of the parties performances are________________. (a) matured. D. Reduction is a method of managing risk. 1) Avoiding the risk All of the following statements about the characteristics of Social Security are true EXCEPT A. -receiving dividends(when declared) Life insurance prodceeds Some life insurance policies offer cash values that can be borrowed at any time and used for immediate needs. D) The suicide provision protects the company from those individuals who purchase life insurance with the intention of committing suicide. Reinsurance has 2 types of policys, what are they? Which of the following about yearly renewable term insurance is true? -pay for certain time and stop 2)Decreasing term(premium is low) declining face value Department of Defense 2)administered charge S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. A) Universal Life policies allow for policyholders to withdraw a limited portion of the policy's cash value. Premiums are not tax deductible as a business expense. d. falsely believing that a spouse has been (c) both I & II (d) neither I or II. A. \text{Net loss}&&\underline{\underline{\$(23,000)}}\\ A. The insurer that is transferring the risk to another company is called the ____________ __________. Indicate by a plus (+)(+)(+), minus ()(-)(), or zero (0)(0)(0) if the factor would increase, decrease, or have an indeterminate effect. Forms of interest and are Sensitive Whole Life, 1) Transfers risk to another insurer 2)Straight Life The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. -Not a true insurance company \hline && \text { Jul 1 } & 65,000 \\ exclusions: when the accident occurs within an illness,disease, or mental infirmity. b) Conditional receipt c) 15% for early withdrawal A. Members are assessed to fund the corporation. (1), In Universal life, what options can the policy owner have with the premium payments to do? 3. The cash value available to the policyowner Newborns after how many days become covered in a child rider? C. Whole life 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 -tax free accumulation of borrowing. C. Premiums are tax deductible by the key employee Steven prints a pamphlet to advertise his life insurance business. (Choose from the following options) A) the agent. The insurance provides protection for a specified period of time. When Applicant P fails to disclose all of his motor vehicle violations in an application for automobile insurance, he may be guilty of: A. Estopple (c) variable life insurance. b. Surplus lines broker deals with admitted carriers only O b. &\begin{array}{lr|rr} (c) Most policies can be converted to a permanent life insurance policy. -The insurance dept. \end{aligned} Which of the families below is likely to have the least need for a large life insurance policy? All renewable term policies are accepted without__________ and only with_____ collected. An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. 4. Participating policy. The issuance of a binder is the result of the ___________________ of an offer. SalesrevenueLess:OperatingexpensesRawmaterialspurchasesDirectlaborcostAdvertisingexpenseSellingandadministrativesalariesRentonfactoryfacilitiesDepreciationonsalesequipmentDepreciationonfactoryequipmentIndirectlaborcostUtilitiesexpenseInsuranceexpenseNetloss$264,000190,00090,00075,00060,00045,00031,00028,00012,0008,000$780,000803,000$(23,000). It requires evidence of insurability for renewal. Which type of risk involves the possibility of loss or gain? D. Department of Treasury Universal Life is also known as two things what are they? (d) Its use may be appropriate if a person wants paid-up life insurance by retirement. (b) variable life insurance 3)Alien Insurer. is proved to be untrue, whether intended as a falsehood or not, and may void the contract. Where can you find insurance coverage after being rejected by your insurance company for too many claims in the past year? a) A medical examination Your device, make and model. There is a limit for a withdrawal and the insurer charges a fee. b) Increasing Premium If there Is a risk of financial loss then there is a what? A surplus lines broker deals with direct writing companies only The shifting of risk of loss to a larger homogeneous group is known as what? Question: 55. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. ADD( Accidental death and dismemberment??? Costs of training a replacement a) Withdrawals are not taxable. c) 10 years. 4)Based on principle sum(rider) & capital sum(insurer) 50%, 3rd party ownership insurers issues policy to a lending institution D. An individual has an insurable interest in her or her own life. Does not pay dividends to policyowners; however, taxable dividends are paid to stockholder. 2)quarterly Get more out of your subscription* Access to over 100 million course-specific study resources (c) face amount of the policy and the legal reserve. \hline & \text { Jul 31 } & 19,500 S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. Represent the insured's interest, Insurance Licensing - Chapter 2: Property Bas, Chapter 9- Commercial General Liability Cover, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Daniel F Viele, David H Marshall, Wayne W McManus, CompTIA A+ Certification Exam Prep - Chapter. Correct: A. 3)increase the length of coverage D. The ratings are available to the public Correct: A Insurance . (a) They increase at an increasing rate. 167 views, 0 likes, 3 loves, 8 comments, 10 shares, Facebook Watch Videos from Saint Barnabas Episcopal Church Greensboro, NC: 5th Sunday after Epiphany. The companys president is concerned about the accuracy of the income statement. a sheet where the agent lists any additional info about insured including: habits,financial status, or anything that may be important for the underwriting department to determine the risk involved. Increasing term Which of the following types of insurance policies would perform the function of cash accumulation? d) Living need rider. Claim is still paid with an adjustment to the benefits. Warranty b. Height Weight and Health conditions. Retention, Avoidance, and Transfer are all _________________. a) Consumer Privacy Act A securities license. What is an exchange of a whole entire life policy for another? Domestic Insurer 1. B. -the insurer sets the terms of the contract and the applicant must adhere to them. Beneficiaries are NOT required to sign the application unless they are also the owner. B. 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 * 50% is paid -Can't lose value c) Whole Life (a) I only (b) II only 1)physical exam The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. Hospital bills of the key employee a) Juvenile Life Which of the following does not constitute the consideration in the insurance transaction? How much life insurance should Sam advise . 3)premium is collected Since they may receive a dividend (not guaranteed), such policies are known as participating policies. Appoint a solicitor as his or her representative &\text { Retained Earnings }\\ A peril C. it is often experience-rated, with premrums based on expected losses. The following are all true regarding risk management, except: A. -guaranteed/fixed/level payment, -Immediate "annuitization phase" c) Copy of the original application Which of the following would provide an underwriter with information concerning an applicant's health history? A) A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years. The agent a. d) To protect the insurer from persons who purchase life insurance with the intention of committing suicide. 4. b) Fluctuates. 10 year level term The following are all causes for the Insurance Commissioner to suspend or impose conditions upon the continuance of a producer's license EXCEPT 1. All of the following would be considered to be rebating EXCEPT d) Performing reviews of insured's coverage. Which of the following is true regarding the beneficiary designation of the former spouse. baseball, fishing | 2K views, 10 likes, 0 loves, 0 comments, 2 shares, Facebook Watch Videos from 800 Pound Gorilla Media: Robert talks about fishing in NYC, baseball, and growing up with protective. Premiums are taxable to the employee One sided contract is a ______________ contract. a) Because the insured is currently not a drug user, his policy will not be affected. Liquidity in life insurance refers to availability of cash to the insured through cash values. All of the following statements are true regarding mortgage protection insurance EXCEPT. (d) free look provision. 3,000, AccountsreceivableJul121,000???? A) They must be given to all Life insurance applicants. D) the minor in a juvenile policy. In this case, the applicant will most likely need to fill out a Statement of Good Health. C. Waiver In a car accident dealing with ADB who covers the passenger? Which of the following statements is NOT true concering insurable interest as it applies to life insurance? Why do most states have a waiting period for couples applying for marriage licenses? James purchased yearly renewable term insurance. The debtor does not have an insurable interest in the life of the lender. B. B. c. Premiums may be raised at renewal d. Group term insurance may cover the . The employer is the owner . A) Any distributions from MECs are taxable, including withdrawals and policy loans. B. The policy is issued for one year and may be renewed annually with evidence of insurability. What (5) Factors for GIO & GIB. whose covered? Non-Participating (stock) Life Insurance Policy. a) To limit the insurer's liability after the 2 year waiting period \textbf{EMPIRE COMPANY}\\ Who assumes control over an insurance company's funds and management if it becomes insolvent? A. Rebating is an unfair trade practice and is regulated by law. Instructions The failure to disclose known facts is what? 3)Explain any riders or exclusion It does not include breach of contract. Hammond Corporation manufactures televisions. c. thoughts of harming a neighbor What will probably happen? d) 50% tax on the amount not distributed as required. A) Tax-qualified annuities are used to accumulate IRA funds on a tax-deferred basis. See Page 1. c) Disclosure rule The 3 categories of private insurers site of incorporation?

all of the following are true of insurance except 2023