A buy-sell agreement is simply a contract that establishes what will be done with a business in the event that an owner dies. a. -Not a true insurance company Who assumes control over an insurance company's funds and management if it becomes insolvent? Quarterly working capital levels for your firm for the next year are included in the following table. -immediately considered fully paid up C. Consideration Which of the following statements concerning buy-sell agreements is true? 4)settlement options, 1)stand alone policy RentalClassRoomTypeITypeIISuperSaver$30$20Deluxe$35$30Business$40. Insurance that is provided by the Federal or State Government and sex doesn't determine eligibility? (d) annual premium and the annual policy dividend. -cash value can lose value. Its controller resigned in October 2017. Whats the "take it or leave it contract"? Which of the following is usually true of a participating life insurance policy? 4. As her friend, you have been asked to review the income statement and make necessary corrections. 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. 2)quarterly The safety margin is narrower, because the cost of the insurance to the policyholder cannot be adjusted at a later time. An Applicant inaccurately representing information on the application is guilty of: A. D. The policy is a bilateral contract 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. Who is responsible for making sure the application is completed properly and all necessary info is obtained? When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT: Provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant. Concerning insurance, the definition of a fiduciary is The 3 categories of private insurers site of incorporation? It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer. Therefore, it is responsible for 1/3 of the $24,000 loss, or $8,000. 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 D. Alien IRS classification of a policy that is overfunded? B) Fiduciary refers to a position of trust. ~~~\text{Selling and administrative salaries}&75,000\\ C. Medical Background -sex doesn't determine eligibility. Insurers use this law in order to predict certain types of losses and set appropriate premiums. -marriage An agent has authority to do all of the following, except: A. Countersign insurance contracts (b) Prepare a correct income statement for October 2017. Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of$2,200, $2,500,$2,500, $2,000, and$1,800 over the next 5 years. 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 _______ ________. c) The policy will be voided. To sell variable insurance what must you have? What is the primary source of info for the underwriting department to determine insurability? don't pick binding receipt at all on test. 1 / 25. Traditional insurance policies contain a list or description of excluded "perils" (that which causes a loss). Joe, Larry, and Curly own a small business. A ____ contract requires that both parties perform certain duties. Acceptance b) 10% for early withdrawal &\begin{array}{lr|rr} (b) reduced. 3)Minors. All of the following are true regarding life insurance illustrations EXCEPT. 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 4)Explain the policy and its provisions D. The benefit is received tax free. After everything is signed & premium is collected What does the agent give to the policy holder? \text{Inventory} & 201 & 505 & 905 & 52 \\ d. The total of all cost sheets completed during the month is $628,880.00. A. There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. a) Accepted accounting principal. DepreciationExpense-FactoryEquipmentDepreciationExpense-BuildingHeat,Light,andPowerExpenseInsuranceExpense-Factory$5,770.242,822.409,055.201,505.28MiscellaneousExpense-FactoryPayrollTaxesExpense-FactoryPropertyTaxExpense-FactorySuppliesExpense-Factory$13,780.4843,736.006,088.3218,063.36. 2)people under the influence of drugs or alcohol . C. Risk c) To protect the policyowner \text{Sales revenue}&&\$780,000\\ What is a statement in the application guaranteed true in all respects? 2)Foreign Insurer What type of insurer has no capital stock? A company doing business in the same state it was incorporated in and owned by the policy holders. a) Indeterminate Premium 2)Decreasing term(premium is low) declining face value An Insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer? All of the following statements about universal life insurance are true EXCEPT Any withdrawal of a policy's cash value reduces the amount of the death benefit. ~~~\text{Rent on factory facilities}&60,000\\ -it pays the double indemnity, 1)accident occurs, person must die within 90 days Instructions d) Tax-deductible. a) A medical examination b) Fixed income Universal Life is also known as two things what are they? ____________ insurer is not a type of insurer. Close Skip to Content High Contrast Increase Text Size Clear All 515-705-0233. The NAAR for a life insurance policy is the difference between the d. 2)face amount is set \hline \text{Cash} & \$ 100 & \$ 100 & \$ 100 & \$ 100 \\ An agent tells an insured that if he replaces his current insurance policy with a newer one, his dividends will be higher and his premium will be slightly lower. 4. 1) preferred-low Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Correct: A. B. B. What does it mean when a policy is limited pay life? B. Past-due interest on a policy loan is added to the total debt. a. whole life paid at 65 A mutual insurer has no stock, and is owned by the policyholders. B. Buy-Sell Agreements pay in the event of a medical emergency 1) Conditional Reciept Daycare is considered to be among these expenses. An aleatory contract is a contract where the monetary values of the parties performances are________________. C. Payment of premium An IRA uses immediate annuities to pay out benefits; the IRA owner is nearly 75 years old when he decides to collect distributions. c) Conditional B) Once the cash surrender value option is selected, the coverage is terminated and the policy cannot be reinstated. 3)MIB=records of all previous insurances they had. 4)annual, Everytime you have a payment due. 1) All requirements are met Can a misrepresentation render the contract void if the misrepresentation is material to the risk? O c. The policyowner has the option of investing the cash value in several investment accounts. All of the following are types of insurers except: The ________ Branch of the state government influences public policy regarding insurance laws. B. Are insurance company underwriters allowed to discriminate? Cash values can be borrowed at any time States regulate the procurement of business from nonadmitted carriers by regulating the brokers who place business with these carriers. 4)defined contribution plans. a) An agent offers the use of his lake house to person as an inducement to buy. 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? A. 2)Variable annuity \textbf{EMPIRE COMPANY}\\ a) Types of mutual companies In this case, the applicant will most likely need to fill out a Statement of Good Health. Which type of life insurance makes sense for someone in this situation? If contract is up after 20 years & policy holder wishes 2 renew what occurs every year? Where does group-life insurance come from? Various life insurance programs for people who served in the military are called ______________? When the company earns a profit and elects to share there profits, they pay a ____________to the policyholders or shareholders. What happens when there is a Misstatement of age or sex? d) Decreases annually. What else must he include? 2)Increase the face value d) Blackout approach. 3. Which method makes the most sense for her to employ? The remaining amounts should be charged to selling and administrative activities. 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. D. Breach of warranty What contract characteristic does this describe? (c) They decrease at a constant rate. b) Unilateral Being young and healthy means you can skip out on health insurance. The insurance contract is a _________ because the court will usually interpret in favor of the insured when an insurance policy is not clear. when the applicant/owner is not the insured-3rd party 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. C. Application 2)attorneys b. b) Promptly forwarding premiums to the insurance company Who represents the insured when dealing with insurance companies? A conditional or binding receipt is given when an applicant does what? c) Term life d) Joint and Survivor, B) The Waiver of Cost of Insurance rider is found in Universal Life policies. C. The death benefit paid to the beneficiary B. a) Universal life -The insurer would pay the face amount of the policy minus the past due premium. The applicant's medical background is addressed in Part 2 - Medical Information. c) Accelerated benefit rider. They have made a legal arrangement which states that if one of them dies or becomes disabled, the other two wull be able to buy the partner's shares, Which term best describes this arrangement? . \text{ ???? } (d) yearly renewable term, Which statement is true concerning premature death and life expectancy? These individuals qualify for lower premiums than those in the other categories. A) The insurance policy usually has a provision specifying how a notice of loss is to be made to the insurance company. A __________ represents the insured. Example: company that is incorporated in NJ and sells in NJ. (b) The face amount of the policy is paid if the insured lives to age 65. 2) form of interest sensitive life insurance(current market conditions influence the cash value) Company A carries 1/3 of the total coverage ($20,000 + $40,000 = $60,000). -A Mec will receive unfavorable tax treatment B. The policy does not go into effect until the premium has been collected. C. A husband or wife has an insurable interest in their spouse Compute DVDs net cash provided by (used for) operating activities during July. If the corporation collects the policy benefit, then Correct: A. I. Which of the following documents must be provided to the policyowner or applicant during policy replacement? EMPIRECOMPANYIncomeStatementFortheMonthEndedOctober31,2017\begin{array}{c} 1)Whole Life 2) Binding Reciept. Which of the following is TRUE regarding assignment rights for . b. D) Members of the uniformed forces can obtain term group life insurance through Servicemembers' Group Life Insurance (SGLI). A. In a car accident dealing with ADB who covers the passenger? c) Variable Premium \hline & \text { Jul 1 } & 55,000 \\ The terrorism risk insurance program reauthorization act provides for a terrorism insurance program administered by which federal entity? What are two reasons that people deposit money in banks? If a change in the application is necessary what is required? Type of insurance contract that pays its death benefit only during a specified period of time and nothing after that stipulated period. (b) Cash value accumulation is slow to moderate. D. The ratings are available to the public Correct: D. Concealment. ______________ is defined as restoring the insured to the same financial condition as before the loss. _______ pays dividends to the stock holder. D) The Fair Credit Reporting Act governs what information can be collected and how the information can be used. What are the permanent working capital needs of your company? a. mentally counting backward from 1,0001,0001,000 The interest rate credited to the cash value at the time of issuance remains fixed over the life of the policy. The employer is the owner . C. Domestic \hline \text { Jul 1 } & 5,500 &&\\ c) Disclosure rule C. It's a decreasing term insurance. This form of life insurance has fixed premiums and the cash value is not guaranteed. \\ What is the difference between renewable policy holder & Insurer? 1)policy owner can increase/decrease/ or skip premium payments -Can't lose value To sell variable life insurance policies, an agent must receive all of the following EXCEPT a) Offering additional coverage to clients Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person. What is the MIB? Round Trees management makes a forecast of the demand by rental class for each night in the future. (c) two-income earner family. (d) sandwiched family. d) Performing reviews of insured's coverage. considers Lloyds of London an Alien insurer B. IRS has no jurisdiction An individual applies for a life policy. The cash value of availability to the policyowner -its a rider c) Guides describing company financial integrity All of the following statements about the characteristics of Social Security are true EXCEPT A. Appoint a solicitor as his or her representative Compensating executives A key person insurance policy can pay for which of the following? A. Foregin (a) limited-payment whole life insurance There are 2 parties of the contract- what are they? WorkinProcess$229,040.00EmployeeIncomeTaxPayable$33,880.00FactoryOverhead78,960.00SocialSecurityTaxPayable19,096.00Cash250,558.00MedicareTaxPayable4,466.00\begin{array}{lrlr}\text { Work in Process } & \$ 229,040.00 & \text { Employee Income Tax Payable } & \$ 33,880.00 \\ \text { Factory Overhead } & 78,960.00 & \text { Social Security Tax Payable } & 19,096.00 \\ \text { Cash } & 250,558.00 & \text { Medicare Tax Payable } & 4,466.00\end{array} &\text { Accounts receivable }\\ cash value increases while face value remains the same. 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.