What can they do? D Adverse selection. 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. And employee quits her job where she has a balance of $10,000 in her qualified plan. Which policy provision allows this? 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. The regulation of the insurance industry primarily rest with. Required fields are marked *, Rebating is an unfair trade practice and is regulated by law. What are examples of a business use of life insurance? A temporary producer license could be issued without examination to all the following EXCEPT? B 90 days In this situation, the Commissioner must be notified within 30 days. f. Get an answer. D$5,000. An employee quits her job where she has a balance of $10,000 in her qualified plan. Which of the following would be required to be licensed as an insurance producer? select one: Which set of characteristics will produce the smallest value for the estimated standard error? D Felony. If an applicant has been licensed in the past 12 months, the Commissioner may waive education and examination requirements. False financial statements are made when insurance companies attempt to hide their financial troubles from the public and government officials. What determines the amount of each installment paid in a life income option arrangement? D.the spouse of a retiring insurance producer B An offer to share in commissions generated by the sale. What would be the face amount of the new term policy? Until now, she has collected a nontaxable dividend check each year. What license or licenses are required to sell variable life annuities? The insured knows that his financial state will worsen even more with upcoming medical expenses. a constant a term a variable an expression. 3. Although the appointment is made by the head of the Insurance Department, that person leaving the office does not terminate existing appointments. A rebate is a type of purchasing discount that is paid as a reduction. The policyowner is entitled to policy loans. It is illegal to participate in any boycott, coercion, or intimidation that is intended to restrict fair trade or create a monopoly. C Rebating In an annuity, the accumulated money is converted into a stream of income during what time period? Therefore, in the other types of level policies, the first-year premium would not be different from any other year. The insured had his wife named as the beneficiary of his life insurance policy. C It requires satisfactory completion of at least 24 hours of approved training every biennium. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. there is no provision in the insurance code that allows for a temporary licensed to be issued on behalf of a producer. C Cease and desist order What is true regarding taxation of accelerated benefits under life insurance policy? What information will be stated in the consideration clause of a life insurance policy? What is the purpose of a fixed-period settlement option? d) Rebates are allowed if it's in the best interest of the client. If the corporation collects the policy benefit, then. 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. B Attorney General. B - In order to collect premiums and explain coverages, a person would need to be licensed. A Adverse selection D Cradle. all of the following would be considered rebating except Follow us. Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as Under what circumstances could the daughter collect the death benefit? 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. 1.Reasonable expectations 2.Subrogation 3.Ambiguities in a contract of adhesion 4.Utmost good faith - answerSubrogation There are various optional provision for health policies. A Natural Group If convicted for a false claim, an insured, agent, collector, physician or any other person could be fined up to $1,000. The person or interest to whom the policy proceeds will be paid upon the death of the insured. Dividends paid to policyholders of a mutual insurer are not considered to be a rebate because the policy specifies that they might be paid. 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. If the corporation collects the policy benefit, then What is the best reason to purchase life insurance rather than annuities? All of the following are penalties for submitting fraudulent claims to the insurer EXCEPT 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. As it turns out, the answer to this question depends upon a variety of factors. How can she obtain an individual policy? A. Misrepresentation. In Connecticut, continuing education courses must be approved by the. Commissioner. A 60 days A 30 days C Dividends from a mutual insurer. C 12 months Which of the following individuals could qualify for a temporary insurance license? 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. A person does not require an insurance producer license if he or she only advertises without intent to solicit insurance. When a persons only options for a contract are on a take it or leave it basis; prepared only by the insurer. An insured owns a life insurance policy. Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner? New answers. Licensed, however, is outside of the U.S. Insurers who are owned by stockholders who have the usual rights of ownership, including the right of voting? 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? C A reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel. An individual had just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. 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. C Rebating. The paid-up addition option uses the dividend to.. What life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? 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? Licensed in the state where the individual resides. 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. An insured misstates her age at the time the life insurance application is taken. He died on February 28. B The annual premium of $200 was due on February 1; however; the insured failed to pay the premium. D Misrepresentation. A participating life insurance policy may pay a portion of its net earnings to a policyholder, but dividends cannot be guaranteed. 60 days. 1 Answer/Comment. B Twisting. "At the time of the application" is when interest must exist. An applicant for a Counselor's license in Michigan must possess all of the following EXCEPT Correct Answer: A. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. Y was killed in an automobile accident on August 22, before the policy was issued. B. Twisting. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. If an insurer terminates a producer, the Commissioner will receive a notification. This nonforfeiture option provides coverage for the longest period of time: The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which of the following, upon conviction, carries a fine of up to $2,000 for each violation? When the application is signed and a check is given to the agent, The insurer's domicile of location of incorporation will determine whether a company is domestic, foreign, or alien. Group life insurance is a single policy written to provide coverage to members of a group. A producer in tensional he violated insurance statues. An insured had a $10,000 term life policy. After five years, she decides to leave the company and work independently. In comparison to consumer reports, what best describes a unique characteristic of investigate consumer reports? The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. 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? What must be presented before an applicant submits a premium? 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? Correlation and Causation What are correlation and causation and how are they different? What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident? User: 3/4 16/9 Weegy: 3/4 ? When an insurer's underwriter approves coverage and issues a policy. in order to reinstate a life insurance policy the insured must do all of the following except: pay next year's premium in advance. A temporary license may be issued for up to 180 days. Asked 10/30/2021 2:23:39 PM. B Legal, provided that the other insurers are paid royalties for the usage of their names What statement is true concerning buy-sell agreements? 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 salaried full-time employee who furnishes information for group insurance There is a limit for a withdrawal and the insurer charges a fee. Which of the following is an eligibility requirement for all Social Security disability income benefits? Which of the following would be considered an illegal inducement to purchase insurance? 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? Number of credits required for fully insured status for Social Security disability benefits? A In the preceding 12 months. He dies in a freak accident on June 1. C A Concealment. In Michigan the state's continuing education requirement B Discrimination Insurers commonly require HIV testing; the insurer must abide by a variety of rules created by its respective state. = 15 * 3/20 Within how many days of this notification must the producer be sent a copy?