What best describes this practice? 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? B An offer to share in commissions generated by the sale. A participating life insurance policy may pay a portion of its net earnings to a policyholder, but dividends cannot be guaranteed. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. And employee has group life insurance through her employer. C Controlled business. This practice is considered In this case, what will the policy beneficiary receive? B Nonresident Which nonforfeiture option has the highest amount of insurance protection? Rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. What is this called? Question. Which of the following is NOT a pathway in the oxidation of glucose. Commissioner. D Unfair Discrimination. Which of the following best describes this act? 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. All of the following could own a group life insurance EXCEPT A group needing low-cost life insurance An applicant for a producer's license has successfully completed all of the steps to obtain the license. The protocol for replacement does not apply to which of the following situations? If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? C In the last 5 years. B Sending a $20 gift certificate to the insured's employee after the insurance has been effected as a thank you for the referral A 40 year old man buys a whole life policy and names his wife as his only beneficiary. The following areas are regulated by the Insurance Department EXCEPT A Giving an applicant a $5 pen with the insurer's logo during the insurance application process All of the following events will terminate a producer's certificate of appointment EXCEPT Which of the following is true regarding pre-licensing education requirements for insurance producers in the state? B An offer to share in commissions generated by the sale. Upon receipt of notice of appointment, the commissioner must verify the insurance producer is eligible for appointment within how many days? How do you get to Motion settings on iPhone? C. Address The separate account under many annuities provides the annuitant with a dozen or more investment options ranging from "money market funds" to "growth stock funds" to "precious metal funds". He's insured under a life insurance policy with the accelerated benefits rider. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms. How many credit hours of excess continuing education or producers allowed to carryover to the next renewal cycle? What characteristic makes whole life permanent protection? 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? Rebates include money, sharing of commissions, promises, inducements and personal services. C Rebating. An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. The insurer has 15 days to file a notice of producer appointment. What relationship is not an example of insurable interest? B Twisting B$1,000 What is the maximum fine for submitting a false or fraudulent claim to the insurer? This year, she did not receive a check fin from the insurer. Asked 11/28/2019 3:15:17 PM. 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. D Misrepresentation. ResponsibilitymarginContributionmarginPerformancemarginTransferpriceCost-plustransferpriceProductcostsCommonfixedcostsTraceablefixedcostsCommittedfixedcosts. User: She worked really hard on the project. A It allows for up to 15 excess credit hours to be carried forward to the next reporting period. 6 2/3 When is the earliest a policy may go into effect? An insured owns a life insurance policy. In which of the following situations is it legal to limit coverage based on marital status? A Rebating. False financial statements are made when insurance companies attempt to hide their financial troubles from the public and government officials. What is not an example of a business use of life insurance? B$1,000 Term used to name the no taxes return of unused premiums? The integer 4 is considered all of the following except _____. Gender The owner, however, does not have to be the one who receives the benefits; it could be the annuitant or the beneficiary. What employee insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated? -is what's meant by the phrase "The domesticated generations fell Weegy: A suffix is added to the end of a word to alter its meaning. C It requires satisfactory completion of at least 24 hours of approved training every biennium. Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. When an employee terminates coverage under group insurance policy, coverage continues in force for how long? Earnings grow tax-deferred, contributions are not currently taxable, it can discriminate in benefits and selecting participants, For a retirement plan to be qualified, it must be designed for the benefit of. D Even though my life fits into a backpack, I still find that theres never enough closet space for my clothes. Which of the following would be required to complete pre-licensing education? Whether an insurable interest exists between the individuals, An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering a(n). the spouse of a retiring insurance producer Charge a level annual premium throughout the insured's lifetime and provide a level, guaranteed death benefit. When may an insurance company use suicide as a defense against paying a death claim? SUGGESTIONS FOR PREPARING SPEAKING NOTES While several of these reminders might strike you as obvious, speakers often ignore them when preparing to speak. A Twisting. The insured had his wife named as the beneficiary of his life insurance policy. All of the following would be considered rebating except. A Payment of restitution C 90 days A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. What option does this describe? D Collecting a lower premium than what's specified in a policy as a token of client appreciation. When does the policy coverage become effective? A producer in tensional he violated insurance statues. Which of the following provisions would NOT be found in Term Life Insurance? A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. In order to to do that, what may happen? When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. What reports include written and/or oral information regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources? In Connecticut, continuing education courses must be approved by the. A Unfair claims 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. An appointment by an insurer is based upon the person maintaining a valid insurance license. The policyowner may assign a part of the policy or the entire policy. What is the minimum required age for an insurance producer in this state? The applicant must file a certificate of completion of the prelicensing courses taken to prove that the courses were not taken more than 12 months before the Commissioner received the application. A 60 year old participate in a 401(k) plan takes a distribution in rolled it over to it I already within 60 days. What type of annuity is it? What type of policy is this? D D False advertising. She would likely purchase a(n)? What is the total, monetary penalty this producer can expect to receive? Indicate the effects of the given transaction on assets, liabilities, and equity, including identifying the individual accounts affected. Correct Answer: A. The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the? C. Rebating. D$5,000. Which two terms are associated directly with the premium? A 30 days How are contributions to a tax-sheltered annuity treated with regards to taxation? The insured knows that his financial state will worsen even more with upcoming medical expenses. As a condition for renewal of their licenses, how many hours of continuing education required for all resident and nonresident insurance producers? An insured misstates her age at the time the life insurance application is taken. All paid by the time the insured reaches age 65. Which of the following best describes this practice? D 30 days. all of the following would be considered rebating except Follow us. D Other than the 3 hours of ethics, licensees may take courses in any line. D Y was killed in an automobile accident on August 22, before the policy was issued. Formula: (Ann . Until now, she has collected a nontaxable dividend check each year. Juan is the person employees go to when knowledge of a topic was needed. Are you having trouble answering the question Rebating is an unfair trade practice and is regulated by law. B A Defamation 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. Within how many days of requesting an an investigative consumer report must an (insurer) notify the consumer in writing that the report will be obtained? A Illegal until endorsed by the Guaranty Association Corporation is the owner and beneficiary of the key person life policy. 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. (Example) A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. Part 2 of the application for life insurance provides questions regarding all of the following.. D Cash surrender, extended term, reduced paid-up. The main difference between immediate and deferred annuities is What does "level" refer to in level term insurance? And employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his All of the following would be different between qualified and nonqualified retirement plans: An employee has group life insurance through her employer. Which nonforfeiture option provides coverage for the longest period of time? An individual had just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. C Rebating In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. His wife dies 10 years later. Person entitled to exercise the rights and priveleges in the policy, Amount paid upon the death of the insured in a life insurance policy. Who is personally liable for all contracts of insurance unlawfully made with in Tennessee on behalf of an unauthorized insurer? Company Information; FAQ; Stone Materials. D Adverse selection. B False advertising. What term means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors? Any type of fraud or misrepresentation is a violation that may cause a license to be denied, suspended, or revoked. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as. A licensee must inform the Commissioner of a change of legal name or address within 30 days of the change. What information will be stated in the consideration clause of a life insurance policy? In comparison to consumer reports, what best describes a unique characteristic of investigate consumer reports? 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. D Slandering. In Michigan the state's continuing education requirement In a direct rollover, how is the money transferred from one plan to the new one? C 7 This pays 2 or 3 times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident. A salaried full-time employee who furnishes information for group insurance A person required to be licensed under the laws of the state to sell, solicit, or negotiate insurance is known as. The ownership provision entitles the policyowner to What is correct concerning the taxation of premiums in a key-person life insurance policy? If a licensee does not earn 24 hours of Continuing Education by the license review date, the license will be suspended for up to how many days? What is the primary purpose of a 401(k) plan? The insured applies this year's $300 worth of accumulated dividends to the next year's' premium, thus reducing it to $900. A Which of the following, upon conviction, carries a fine of up to $2,000 for each violation? 90 days. 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 In this state, what type of violation is rebating? The premiums paid by the employer in a business life insurance policy are All of the following are true of a key person insurance.. C Mutual Company In a life settlement contract, whom does the life settlement broker represent? B - In order to collect premiums and explain coverages, a person would need to be licensed. How many days does the insurer have to deliver this notice? What statement concerning group life is true? A Misdemeanor Variable life insurance is based on what kind of premium? What is the result of this? Which of the following best describes the unfair trade practices of defamation? C Twisting Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? 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. unit 3: personal and business finance grade boundaries. A Assigning different risk classifications to applicants based on gender identity Which of the following persons is required to hold a producer license? If a resident insurance producer moves from Tennessee to another state, he/she must file a change of address and provide certification from the new resident state within how many days of the change of legal resident? A candidate for life insurance producer's license must complete how many hours of prelicensing education? What does this mean to the beneficiaries? A Applicant must be 18 years old D Coercion. When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? A participating insurance policy will pay _________ to the owner based upon actual mortality cost, interest earned and costs. All the following could be considered rebates if offered to an insured in the sale of insurance except? B 60 days A Defamation Time during which accumulated money is converted into an income stream. A 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. all of the following would be considered rebating except. C Law of large numbers A. A Restriction of authority An insurer devises in a determination strategy in order to quarter a large portion of the insurance market. Log in for more information. Discrimination. What option would allow her to do this? Unintentional misspellings are not a misrepresentation. D An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. Required by state law to be included in the policy, and cannot be altered by the policyowner. Which is NOT required of an applicant for an insurance license in Michigan? Because of this, the company charged him a higher rate for his insurance. Which of the following would be required to be licensed as an insurance producer? Rebates are allowed if it's in the best interest of the client. What is the minimum civil fine per violation of the Insurance Code of this state? What protects the insured from an unintentional policy lapse due to a nonpayment of premium? B Mailing an agency brochure to a prospective client D Rebating. An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. Within what time period after completing prelicensing education must an applicant file a certificate of education completion with the Commissioner? 1 to 75. 3. A. If the corporation collect the policy benefit, then. Upon conviction, a person who has submitted a false or fraudulent claim or report to the insurer may be fined, imprisoned, or both, and required to pay restitution. If an insured receives accelerated death benefits, what is the least amount of the original death benefit that the beneficiary would receive after the insured's death? If a policy had an automatic premium loan provision, what happens if the insured dies before the loan is paid back? The policy contained an accidental death rider, offering a double indemnity benefit. When a whole life policy lapses or is surrendered prior to maturity, the cash value can be use to.. What describes the tax advantage of a qualified retirement plan? What is the purpose of a free-look period in insurance policies? Rebates are allowed if it's in the best interest of the client. C Two letters of recommendation attesting to trustworthiness, reliability, and good reputation An insured committed suicide 6 months after his life insurance policy was issued. An insured has a life insurance policy from a participating company and receives quarterly dividends. An insured receives an annual life insurance dividend check. Purest form of term insurance; death benefit remains level, but the premium increases each year with the insured's attained age. The Commissioner may waive prelicensing requirements or examinations for someone who has been a licensed insurance producer Insurers are also not allowed to cancel individual coverage due to a change in marital status. 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. Rating. An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. The annual premium of $200 was due on February 1; however; the insured failed to pay the premium. To combat the Where is heavy cream in Walmart? The death protection component of Universal Life Insurance is always.. A return of Premium term life policy is written as what type of term coverage? The policyowner pays for her life insurance annually. B In the preceding 2 years. A A good business reputation and good moral character. If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a? If $100,000 of life insurance proceeds were used in a settlement option, which paid $13,000 per year for ten years, which of the following would be taxable annually? Assuming he never changed his beneficiary, the policy proceeds will go to Who can request changes in premium payments, face value, loans, and policy plans? The insurance company discovers at that time that the insured concealed info during the application process. select one: Which set of characteristics will produce the smallest value for the estimated standard error? Which of the following may obtain a producer's license, but may not sell, solicit, or negotiate a contract of insurance in Tennessee? C A legal advertising strategy D Business Entity. Because of this, the company charged him a higher rate for his insurance. Which of the following is an eligibility requirement for all Social Security disability income benefits? All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. Nonforfeiture values guarantee which policyowner? Each of the following statements may (or may not) describe one of these technical terms. The premiums paid by the employer in a business life insurance policy are. Which of the following activities is not performed by an insurance producer? C Solicit business as an insurance producer A Defamation When a persons only options for a contract are on a take it or leave it basis; prepared only by the insurer. B. the designee of a licensed insurance producer who enters active duty in the US Armed Forces What option could the insured utilize? = 45/20 In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. A banker is ready to close on a customer's loan. 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. Published by at June 10, 2022. Question. What is this an example of? A table showing the nonforfeiture values for the next 20 years must be included in the policy. What is this called? This is considered to be an unfair claim settlement practice 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. A. Misrepresentation. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as Although the appointment is made by the head of the Insurance Department, that person leaving the office does not terminate existing appointments. C Listing the insurance companies the agency represents in a letter Obtain appropriate signatures on the application for insurance, help prevent adverse selection, and solicit business that will fall within the insurer's underwriting guidelines. Michigan's continuing education requirement has each of the following characteristics EXCEPT An investor buys a life insurance policy on an elderly person in order to sell it for a life settlement.. what is this an example of? D$2,000. B Community service What type of insurance policy may be used to fund this agreement? All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. Whole life policies offer level premium based on the issue age, guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans.