C Dividends from a mutual insurer. This is a personal use of life insurance known as. Chapter 7 Life Flashcards by Benjamin Palmer | Brainscape Rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. What is the minimum required age for an insurance producer in this state? She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? A 40 year old man buys a whole life policy and names his wife as his only beneficiary. Minimum number of credits required for partially insured status for Social Security disability benefits is. A producer or broker who makes oral or written statements intended to injure another producer or insurer is guilty of the unfair trade practice of defamation. D An offer of employment. These are all considered to be Unfair Trade Practices, which are major violations that can lead to heavy penalties. B Nonresident B Community service What statement about a suicide clause in a life insurance policy is true? Therefore, in the other types of level policies, the first-year premium would not be different from any other year. What is the advantage of reinstating a policy instead of applying for a new one? Which of the following documents must be provided to the policyowner or applicant during policy replacement? The policyowner should have her husband named as the.. A couple owns a life insurance policy with a Children's Term rider. All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. Variable life insurance is based on what kind of premium? All the following are business uses of life insurance: If I retirement plan or annuity is "qualified," this means Who is the owner and who is the beneficiary on a key person life insurance policy? 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. It is illegal to participate in any boycott, coercion, or intimidation that is intended to restrict fair trade or create a monopoly. The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the.. Life income joint and survivor settlement option guarantees. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. The policyowner of an adjustable life policy wants to increase the death benefit. What happens when a policy is surrendered for its cash value? A$500 A corporation is the owner and beneficiary of the key person life policy. Person entitled to exercise the rights and priveleges in the policy, Amount paid upon the death of the insured in a life insurance policy. 45 What does this mean? When would a misrepresentation on the insurance application be considered fraud? Group life insurance is a single policy written to provide coverage to members of a group. In which of the following situations is it legal to limit coverage based on marital status? An insured receives an annual life insurance dividend check. all of the following would be considered rebating except Within what time period after completing prelicensing education must an applicant file a certificate of education completion with the Commissioner? An insured had a $10,000 term life policy. An insured pays $1,200 annually for her life insurance premium. False financial statements are made when insurance companies attempt to hide their financial troubles from the public and government officials. Charge a level annual premium throughout the insured's lifetime and provide a level, guaranteed death benefit. C Consists of completing 24 hours of CE each biennium. A candidate for life insurance producer's license must complete how many hours of prelicensing education? What describes the tax advantage of a qualified retirement plan? C Misrepresentation When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of Good Health, A presentation of non-guaranteed elements of a policy, One-sided: only one party makes an enforceable promise. Telling a client that his first premium will be waived if he purchases the insurance policy today. Chinese Granite; Imported Granite; Chinese Marble; Imported Marble; China Slate & Sandstone; Quartz stone B Discriminating in benefits and coverages based on the insured's habits and lifestyle What is true concerning a buy-sell agreement? A Natural Group C. the employee of a disabled licensed a producer Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? An annuity owner is funding an annuity that will supplement her retirement. Life insurance cost indexes are our only useful when comparing a minimum of how many similar policies? all of the following would be considered rebating except ResponsibilitymarginContributionmarginPerformancemarginTransferpriceCost-plustransferpriceProductcostsCommonfixedcostsTraceablefixedcostsCommittedfixedcosts. Juan is the person employees go to when knowledge of a topic was needed. An insured owns a life insurance policy. This rider usually expires at the insured's age of 40. In classifying a risk, the Home Office underwriting department will look at all of the following.. A generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process. D 2 years. An employee quits his job on May 15 and doesn't convert his group life policy to an individual policy for 2 weeks. Like a fixed annuity, EIA's have guaranteed minimum interest rates, also less risky than variable annuities, the insurance company also keeps a percentage of the returns. In order to enforce the insurance code the commissioner has the power to conduct which of the following? A temporary license in this state is valid for a maximum of Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. An insured misstates her age at the time the life insurance application is taken. All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT 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. When may an insurance company use suicide as a defense against paying a death claim? Any person found guilty of a violation of the Insurance Code of this state may be subject to a civil fine of up to $1,000 for each violation, or up to $5,000 for willful violations (not to exceed $50,000). Indicate the effects of the given transaction on assets, liabilities, and equity, including identifying the individual accounts affected. An agent offers to share his commission with a policyholder. Under a variable annuity, the issuing insurance company does not guarantee a minimum interest rate or the benefit payment amounts. How much would the beneficiary receive from the policy? The premiums paid by the employer in a business life insurance policy are All of the following are true of a key person insurance.. All of the following actions are considered rebating except D Cancelling individual coverage based on the insured's marital status. If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant What policy component decreases in decreasing term insurance? A. the spouse or legal representative of a deceased insurance producer f. The subtotal in a responsibility income statement that comes closest to indicating the change in income from operations that would result from closing a particular part of the business. Once the policyholder opts for cash surrender, the policy is immediately inactive. D An offer of employment. In order to qualify for conversion from a group life policy to an individual policy of the same coverage, a person must have been insured under the group plan for how many years? D A$500 B Suspension of authority D Misrepresentation, How much is an agent's appointment fee? How could she obtain an individual policy? An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. This is considered to be an unfair claim settlement practice A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. Licensees who are currently licensed, and have recently become residents of the state of Michigan may not have to complete any prelicensing education. The regulation of the insurance industry primarily rest with. The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. Concerning the taxation of premiums in a key- person life insurance policy is: Internal revenue code provision that specifically provides for an individual retirement plan for public school teachers is a(n), Example of liquidity in a life insurance contract. The cash value of a variable life policy is not guaranteed and fluctuates with the_________________ in which the premiums have been invested by the insurer. D A Defamation What relationship is not an example of insurable interest? June 14, 2022; jeep renegade 4x4 usata francoforte sul meno; astrological predictions for trump 2022 . What type of policy does the insured most likely have? All the following are true regarding rebates except? The agent is guilty of What can they do? 16/9 = Weegy: Whenever an individual stops drinking, the BAL will decrease slowly. Up to 12 excess credit hours of CE may be carried over to the next review period. 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? Home; About Us. Under what circumstances could the daughter collect the death benefit? In this situation, the Commissioner must be notified within 30 days. In which of the following situations is it legal to limit coverage based on marital status? What is true? If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? All of the following actions are considered rebating EXCEPT sharing commissions with other licensed and appointed agents refunding part of the premium as an inducement for purchase offering special dividends offering anything of value not specified in the policy A sharing commissions with other licensed and appointed agents 18 Q MI Insurance Regulation Flashcards | Quizlet Horse racing is one of the oldest and most popular racing sports in the world, but how long is a horse race? Expert answered|GaelM|Points 4547| Log in for more information. D Felony. D False advertising. Chapter 11 part 2 Flashcards | Quizlet C A reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel. What is this called? What are the two components of a universal policy? A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. She has decided that she would rather use the dividends to help pay for her next premium. What is the required percentage of participants in a contributory group plan? A temporary producer license could be issued without examination to all the following EXCEPT? When twin brothers applied for life insurance from company a, the company found that while neither of them smoke and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. D A license to practice law. The policy endows when the insured turns 100. If a licensee fails to earn 24 hours of CE by the required review date, the license will be suspended for up to 90 days. C Replace the underlined word with the correct form, How do you play Roblox on a Chromebook without downloading it. The insured had his wife named as the beneficiary of his life insurance policy. A A producer's license is suspended or revoked by the Department of Insurance. Question is All of the following species are considered coliforms except, Options are (A) Enterobacter aerogenes , (B) Klebsiella pneumoniae , (C) Salmonella typhi , (D) Escherichia coli , (E) , Leave your comments or Download question paper. A A good business reputation and good moral character. When would a 20-pay whole life policy endow? C An agent who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called. A Giving an applicant a $5 pen with the insurer's logo during the insurance application process B Criminal offense He never remarried and dies at age 61, leaving 2 grown-up children. Licensed, however, not in the state the indivisible resides. Upon receipt of notice of appointment, the commissioner must verify the insurance producer is eligible for appointment within how many days? 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? What best describes what will happen? Which of the following is a true statement regarding taxation of the accelerated benefits? B What usually includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years? C A producer's license expires and is not renewed. The advantage of qualified plans to employers is. B Illegal If an agent fails to obtain an applicant's signature on the application, the agent must An insurance contract that requires both the insured and the insurer meet certain conditions in order for the contract to be enforceable is (Example) When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. C Mutual Company Convertible without proof of insurability up to the full term death benefit. What type of policy is this? An insured had a continuous premium whole life policy. Which of the following activities is not performed by an insurance producer? D$5. B Undercutting In this situation, a licensee would have to apply for a resident's license within 90 days. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 index. Before the Director will issue a license, a person must meet all of the following qualifications EXCEPT a. c) An offer of employment. What is true regarding a non-qualified retirement plan? All of the following would be considered rebating except Life Insurance Exam Quiz pt. 5 Flashcards - Cram.com Pass an examination for each lie for which a license is sought c. Be appointed to represent at least one authorized insurance company d. Be at least 18 years old An insurer, agent, solicitor, or other person that violates the Insurance Code section on rebating is guilty of a misdemeanor. Log in for more information. A participating insurance policy will pay _________ to the owner based upon actual mortality cost, interest earned and costs. 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. Which of the following is an example of a producer being involved in an unfair trade practices of rebating?
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