He has instructed the company to apply the policy dividends to increase the death benefit. They could be sold for an amount greater than the current cash value, they involve insurance policies with large face amounts, they could be use for a key person coverage. ________________ are owned and controlled by their policyholders. In order for an insurer to legally transact insurance, it must obtain what? Chapter 7 Life Flashcards by Benjamin Palmer | Brainscape A Defamation A domestic insurer issuing variable contracts must establish one or more.. Home; About Us. A corporation is the owner and beneficiary of the key person life policy. Correct Answer: A. B False advertising. Because of this, the company charged him a higher rate for his insurance. An insured misstates her age at the time the life insurance application is taken. Horse racing is one of the oldest and most popular racing sports in the world, but how long is a horse race? Texas All Lines Adjuster Test - Questions And Answers-Accumulated Depreciation - The total decrease in an item's value over a period of time. Within what time period after completing prelicensing education must an applicant file a certificate of education completion with the Commissioner? C$2,000 To qualify for this exemption, they must apply to become resident licensees within a few days of establishing a legal residence within how many days? During replacement of life insurance, or replacing ensure musky which of the following? D Requirements for life insurance illustrations: If a (consumer) requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. MI Insurance Regulation Flashcards | Quizlet If you insurance company makes a statement that it's policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered? What is the maximum fine for submitting a false or fraudulent claim to the insurer? all of the following would be considered rebating except Chinese Granite; Imported Granite; Chinese Marble; Imported Marble; China Slate & Sandstone; Quartz stone If an insurance company has published a brochure that in accurately portrays the advantages of a particular insurance policy. What is this an example of? Regarding the free-look provision, the insurance company.. What happens when a children's rider is added to an insured's permanent life insurance policy? Which of the following would be considered an illegal inducement to purchase insurance? 10 czerwca 2022 . Which of the following best describes this act? = 45/20 B Nothing, unless the remarks were in writing You should now have gotten the answer to your question Rebating is an unfair trade practice and is regulated by law. D Unfair Discrimination. D An offer of employment. All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. What are the two components of a universal policy? Which of the following is not a standard mounting dimension for an electric motor? An agent misrepresents policy benefits to convince a policyowner to replace policies. Juan is the person employees go to when knowledge of a topic was needed. What type of license should the producer obtain? The can be changed only with the written consent of that beneficiary. Which of the following is NOT a pathway in the oxidation of glucose. C Mutual Company When is the earliest a policy may go into effect? Employer contributions made to a qualified plan.. A$500 B Advertise & solicit business as an insurance counselor or consultant Which of the following is an example of a producer being involved in an unfair trade practices of rebating? An insurer, agent, solicitor, or other person that violates the Insurance Code section on rebating is guilty of a misdemeanor. Which of the following terms best describes the advertisement? Log in for more information. Which policy component decreases in decreasing term insurance? When producers give or promise anything of value that is not specified in the policy, they are guilty of rebating. Which of the following, upon conviction, carries a fine of up to $2,000 for each violation? A 15 60 days. all of the following would be considered rebating except Follow us. Rating. Which of the following is an example of a producer being involved in an unfair trade practice of rebating? all of the following would be considered rebating except The policyowner pays for her life insurance annually. A. How many credit hours of excess continuing education or producers allowed to carryover to the next renewal cycle? What information will be stated in the consideration clause of a life insurance policy? An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to. Insureds who have been classified as preferred risk will On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are. All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy? What term best describes this arrangement? Variable life insurance is based on what kind of premium? A father owns a life insurance policy on his 15-year-old daughter. An insured purchases a policy in 2008 and died in 2013. Which of the following would be required to be licensed as an insurance producer? If a live insurance applicant is shown future premiums are to be paid out of non-guaranteed values, the illustration used in the sales presentation MUST. B Unfair claim practice. D C Cease and desist order Upon policy delivery, the producer may be required to obtain? The automatic premium loan provision is activated at the end of the What premium payment mode will incur the lowest overall payment? C Defamation C$1,500 All of the following events will terminate a producer's certificate of appointment EXCEPT Which of the following has not been taken to court for further interpretation? Coercion, for example, is when the bank won't give you an auto loan unless you agree to buy auto insurance from them. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. If an insurer wishes to appoint a producer, it must file a notice of appointment within how many days of the date that the contract is executed? What statement is correct? B$1 Insurers are also not allowed to cancel individual coverage due to a change in marital status. C 30 days In order to to do that, what may happen? An individual has been making periodic payments on an annuity. C Dividends from a mutual insurer. If you like the fitness and motion activity tracking feature on the iPhone, you should have this setting left on. If a policy had an automatic premium loan provision, what happens if the insured dies before the loan is paid back? A All the following would be considered an unfair and deceptive practice. Within how many days of this notification must the producer be sent a copy? Articles of merchandise with an invoice value of $5 or less for life insurance agents and $10 or less for property and casualty agents $10 or less are not considered rebates, and are allowed as gifts to insurance applicants or insured. Ultimately, the commissioner determined that there were a total of 25 separate violations. In this situation, the Commissioner must be notified within 30 days. A policy will pay the death benefit if the insured dies during the 30-year premium-paying period, and nothing if death occurs after the 20-year period. Which of the following is true? What is this called? D Misrepresentation. Circulating deceptive sales material to the public is what type of Unfair Trade Practice? Unless revoked or suspended how long does a producers license remain in effect in Tennessee? All of the following actions are considered rebating except All of the following concerning a non-contributory group plan is true: What is an IRS qualified retirement program for the self-employed? C Rebating. If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a? Required by state law to be included in the policy, and cannot be altered by the policyowner. If she terminates her group coverage, what is true? All of the following would be considered rebating except A person does not require an insurance producer license if he or she only advertises without intent to solicit insurance. B. Defamation. C Dividends from a mutual insurer. Which of the following is possible? D Coercion. Define electric potential and electric potential energy. = 2 1/4. If an injured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is? User: She worked really hard on the project. What would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount? In a life settlement contract, whom does the life settlement broker represent? D$5,000. When a whole life policy lapses or is surrendered prior to maturity, the cash value can be use to.. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. The following areas are regulated by the Insurance Department EXCEPT What determines the length of time that benefits will be received under the fixed-amount settlement option? Any surplus money is returned to the policyholders as dividends. Life Insurance 3 Flashcards | Chegg.com An agent's license may also be suspended or revoked. C Dividends from a mutual insurer. Which of the following would be considered false advertising? B Mailing an agency brochure to a prospective client Rebates include money, sharing of commissions, promises, inducements and personal services. MI Life Insurance Policy Provisions, Options, Federal Tax Considerations for Health Insuran, Qualified Plans, and Federal Tax Consideratio, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. Charge a level annual premium throughout the insured's lifetime and provide a level, guaranteed death benefit. If an insurer terminates a producer, the Commissioner will receive a notification. (Example) your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. If an insured continually uses the automatic premium loan option to pay the policy premium.. An insured purchased an insurance policy 5 years ago. Defamation is making statements that are false as to the financial condition of any insurer and which are calculated to injure any person engaged in the business of insurance. The policyowner may assign a part of the policy or the entire policy. c) An offer of employment. What is this called? What will she need to provide for proof of insurability? Licensed in the state where the individual resides. Result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors? A What best describes what will happen? C 12 months The policy contains the optional Payor Benefit rider. All of the following would be considered rebating except During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. The minimum age at which a person can sign a life insurance application is. What is the primary purpose of a 401(k) plan? How are contributions to a tax-sheltered annuity treated with regards to taxation? Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? It is intended to provide coverage on a date earlier than the age of the issuance of the policy, Pay the policy proceeds only if it would have issued the policy. 0. Which two terms are associated directly with the premium? B Discrimination All the following could be considered rebates if offered to an insured in the sale of insurance except? And any controversy between the insured or the insured's beneficiary and the insured that arises from the application for insurance of any policy issued a connection with the application, the producer is considered to be the agent and which of the following? Correlation and Causation What are correlation and causation and how are they different? This practice is considered? Search for an answer or ask Weegy. The protocol for replacement does not apply to which of the following situations? B Stock Company The integer 4 is considered all of the following except a variable. A$500 A. The insurer's surrender the policy at its current cash value. D Imprisonment. Brand managers can use Twitter strategically to accomplish all of the following, except: A local coffee shop conducts a survey of area residents who enter each one of the coffee shops in the area and learns that 85% desire an organic, fair-trade option. This is a personal use of life insurance known as. Required fields are marked *, Rebating is an unfair trade practice and is regulated by law. File an application with the Director b. B Applies to life, annuity, and accident and health licensees only. all of the following would be considered rebating except C Charging applicants with similar health histories different premiums based on their ethnicity Which of the following is a true statement regarding taxation of the accelerated benefits? Death benefits payable to a beneficiary under a life insurance policy are generally. Who is the main purpose of the seven-pay test? C Policyowner rights and disclosures. In this state, a temporary license may be issued for any of the following reasons EXCEPT. Which policy provision allows this? When may an insurance company use suicide as a defense against paying a death claim? For an individual who is not covered by an employer sponsored plan, IRA contributions are What is correct concerning a non contributory group plan: To attain currently insured status under Social Security, a worker must have earned at least how many credits during the last 13 quarters? 45 This annuity plan is What is true regarding taxation of accelerated benefits under a life insurance policy? Which of the following statements about the reinstatement provision is true? The policy contained an accidental death rider, offering a double indemnity benefit. An agent offers to share his commission with a policyholder. Which insurance arrangement will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? What is true of the cash surrender nonforfeiture option? Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. In this state, what type of violation is rebating? B A Certificate of Completion from the required pre-licensing study course Employer contributions are not included in the employee's gross income, SEP's allow the employer to make annual tax-deductible contributions of the 25% of an employee's earned income, SEP's have a higher tax deductible contribution limit than an IRA. B Michigan's continuing education requirement has each of the following characteristics EXCEPT Term used to name the no taxes return of unused premiums? It is never legal to limit coverage based on marital status. What is the minimum required age for an insurance producer in this state? C A reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel. Part 2 of the application for life insurance provides questions regarding all of the following.. What are the three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term: Best description of what an annuity period is: Policy which allows the partial withdrawal, or surrender, of the policy cash value. Company Information; FAQ; Stone Materials. Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance? Rebating is the practice of returning a percentage of the payment or the agent's/fee broker's on the charge to the covered, as well as additional motivators to do company with a certain insurer. In the best interests of the client, rebates are allowed. = 15 ? If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select? In return, the insurer promised to pay benefits in accordance with the terms of the contract. any person acting as an insurance producer without a valid license may be fined up to. B - In order to collect premiums and explain coverages, a person would need to be licensed. Search for an answer or ask Weegy. To appoint a producer as it's agent, the appointing insurer must file a notice of appointment with the commissioner within how many days from the date the agency contract is executed? All of the following would be considered to be rebating EXCEPT, which was part of Insurance MCQs & Answers. An insured had a continuous premium whole life policy. Which provision of a life insurance policy states that the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? A Payment of restitution Person entitled to exercise the rights and priveleges in the policy, Amount paid upon the death of the insured in a life insurance policy. What is the purpose of establishing the target premium for a universal life policy? What option could the insured utilize? If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who had the ownership rights? The regulation of the insurance industry primarily rest with. What characteristic makes whole life permanent protection? A Provide opinions concerning benefits, coverage, terms, and advantages and disadvantages of a policy or annuity What required provision protects against unintentional lapse of the policy? Licensed counselors may perform the following duties: audit or abstract insurance policies or annuities; provide advice, counsel, or opinions concerning benefits, coverage, terms, and advantages and disadvantages of a policy or annuity; and advertise and solicit business as an insurance counselor or consultant. 90 days. What is the term for how frequently a policyowner is required to pay the policy premium? In level term and increasing term policies, the premium also remains level for the term of the policy. An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. An appointment by an insurer is based upon the person maintaining a valid insurance license. B Coercion. Synonym for a substandard risk classification. A A good business reputation and good moral character. If a life insurance policy develops cash no you faster than a seven-pay whole life contract, it is? A banker is ready to close on a customer's loan. A Cannot be extended or waived under any circumstances. B Criminal offense An employee quits her job where she has a balance of $10,000 in her qualified plan. This is a personal use of life insurance known as.. A) An agent offers to share his commission with a policyholder, B) An agent offers tickets to a baseball game as an inducement to buy insurance, C) An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him, D) An agent offers the use of his lake house to person as an inducement to buy, Answer:C) An agent uses misrepresentation to convince a person to cancel an existing policy and take a new policy from him. Requires the entire premium to be paid in one limp sum at the policy's inception. A rebate is a type of purchasing discount that is paid as a reduction. Which of the following best describes the unfair trade practices of defamation? Cradle. He wants to withdraw some money in order to pay medical bills. When an employee terminates coverage under group insurance policy, coverage continues in force for how long? Who is personally liable for all contracts of insurance unlawfully made with in Tennessee on behalf of an unauthorized insurer? This rider usually expires at the insured's age of 40. Group life insurance is a single policy written to provide coverage to members of a group. All of the following are true regarding rebates EXCEPT. This practice is considered In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Beneficiaries do not have to have an insurable interest in the policyholder. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. A temporary license in this state is valid for a maximum of Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. How do you get to Motion settings on iPhone? All of the following would be considered rebating except A 60 days Any type of fraud or misrepresentation is a violation that may cause a license to be denied, suspended, or revoked. False advertising is the illegal practice of advertising or circulating materials that are untrue, deceptive, or misleading. There is no limitation on the number of key employee plans in force at any one time, the employer is the owner, Payor and beneficiary of the policy, the key employee is the insured. What is true about beneficiary designations? Which of the following documents must be provided to the policyowner or applicant during policy replacement? a constant a term a variable an expression. A Rebating. For the purpose of making an investigation, the commissioner does have the power to do all the following: And in sure publishes intimidating brochures at portray the insurer's competition as financially and professionally unstable. Which road apply for the agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? What statement is true concerning buy-sell agreements? May be used to customize a permanent life insurance policy to meet the needs of the policyowner, Mandatory free look in a life insurance policy. B An offer to share in commissions generated by the sale. An insurer devises in a determination strategy in order to quarter a large portion of the insurance market. Last year, she received a dividend check from the insurance company that was not taxable. Heterotrophs (like humans) ingest 19) Juan is the person employees go to when knowledge of a topic was needed.Juanholds ________ power.A) legitimateB) rewardC) referentD) expert. Annuities are characterized by how they can be paid for which is: While equity indexed annuities earn higher interest rates than fixed annuities, both types of annuities guarantee a specific minimum interest rate. C 7 All of the following would be considered rebating except What must be acceptable in order for the ride to be able to waive the payment of premium? How can she obtain an individual policy? All Of The Following Are True Regarding Rebates Except Individuals covered under the policy receive a certificate of insurance, certificate holders may convert coverage to an individual policy without evidence of insurability, and amount of coverage is determined according to non discriminatory rules. Example: the insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. What is the advantage of reinstating a policy instead of applying for a new one? What statement about a suicide clause in a life insurance policy is true? Brokers and financial advisors are prohibited from accepting rebates since they may create conflicts of interest. A policyowner who is also yeh insured wants to name her husband as the beneficiary of her life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What must be presented before an applicant submits a premium? There is a limit for a withdrawal and the insurer charges a fee. The policyowner is entitled to policy loans. C A producer's license expires and is not renewed. B A new Commissioner or Director is put into office. Added 30 days ago|10/30/2021 2:46:29 PM. Annuities are most commonly used to fund a persons retirement, but they can technically be used to accumulate cash for any reason. D 10 days. B. B Nonresident All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. As it turns out, the answer to this question depends upon a variety of factors. D False advertising. When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. What is true concerning a buy-sell agreement? Is a mandatory provision that allows the insured to examine a policy, and if dissatisfied for any reason, return the policy for a full refund of any premiums paid. C Controlled business. A. the spouse or legal representative of a deceased insurance producer B D This answer has been confirmed as correct and helpful. Considered to be the average risk; representative of the majority of people in their age and with similar lifestyles, Insurers (this is so the insurers can compare the info that have collected on the individual). How many days does the insurer have to deliver this notice? There are just too many details and specifications which you must be certain of when looking for one. A 30 days Department of Education. In most states, if death results from suicide within a certain period, the insurer is not obligated to pay the death benefit therefore..
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