Ultimately, the commissioner determined that there were a total of 25 separate violations. C. Address A Defamation When a beneficiary receives payments consisting of both principal and interest portions, which part are taxable as income? Follow the following are true of the federal tax advantages of a qualified plan. 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? all of the following would be considered rebating except. Term used to name the no taxes return of unused premiums? D False financial statement. What relationship is not an example of insurable interest? D [Show More] ual Depreciation x Number of years used) Acreage Reporting Date - The deadline for providing the insurer with an acreage report, which is used to determine the amount of . It is never legal to limit coverage based on marital status. 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? Which of the following would be considered an illegal inducement to purchase insurance? B 3 days A. 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. What statement about a suicide clause in a life insurance policy is true? A$500 After 5 years, she decides to leave the company and work independently. When an employee terminates coverage under group insurance policy, coverage continues in force for how long? B Mailing an agency brochure to a prospective client Weegy: A basic position in American foreign policy has been that America must defend its foreign interests related to Weegy: 15 ? What is being defined as the degree to which something is related or useful to what is happening or being talked about? What statement is correct? A Applicant must be 18 years old c) An offer of employment. 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. 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? Which policy provision allows this? B Insurer financial requirements. Purest form of term insurance; death benefit remains level, but the premium increases each year with the insured's attained age. 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? Michigan's continuing education requirement has each of the following characteristics EXCEPT She has decided that she would rather use the dividends to help pay for her next premium. D Cancelling individual coverage based on the insured's marital status. The advantage of qualified plans to employers is. Which of the following would NOT be considered rebating? C 7 Licensed, however, not in the state the indivisible resides. B Criminal offense Y was killed in an automobile accident on August 22, before the policy was issued. A 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? Which of the following terms best describes the advertisement? The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. B 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. A person does not require an insurance producer license if he or she only advertises without intent to solicit insurance. The president of a company is starting an annuity and decides that his corporation will be the annuitant. The producer could be found guilty of B. 1 Answer/Comment. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. The policyowner pays for her life insurance annually. An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. 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? Employer contributions made to a qualified plan.. launchpad classlink nmusd; cantonese text to speech; 15 second tv commercial script examples An agent misrepresents policy benefits to convince a policyowner to replace policies. A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. Until now, she has collected a nontaxable dividend check each year. To combat the Where is heavy cream in Walmart? 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). Therefore, in the other types of level policies, the first-year premium would not be different from any other year. What determines the length of time that benefits will be received under the fixed-amount settlement option? D. Commissioner. The insurance company discovers at that time that the insured concealed info during the application process. A 40 year old man buys a whole life policy and names his wife as his only beneficiary. If an applicant has been licensed in the past 12 months, the Commissioner may waive education and examination requirements. B 7 days On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. Time during which accumulated money is converted into an income stream. Each agent must pay a $5 appointment fee to the Commissioner. C It requires satisfactory completion of at least 24 hours of approved training every biennium. B Coercion 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. 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? A A good business reputation and good moral character. D False advertising. The Commissioner may waive prelicensing requirements or examinations for someone who has been a licensed insurance producer Rules of replacement apply to all of the following: An insurer must present a buyers guide and policy summary prior to accepting the applicant's initial premium, unless the policy contains an unconditional refund provision lasting at least how many days? When producers give or promise anything of value that is not specified in the policy, they are guilty of rebating. Rebates are allowed if it's in the best interest of the client. 3. This is considered to be false, deceptive or misleading advertising. = 45/20 However, once there is solicitation, a license is required. Mutual-policyholders; Stock-stockholders. Horse racing is one of the oldest and most popular racing sports in the world, but how long is a horse race? B Discrimination A temporary insurance license maybe issued without examination and all of the following: A candidate for an accident and health producer's license must complete how many hours of prelicensing education? A Defamation C In the last 5 years. The premiums paid by the employer in a business life insurance policy are. B. Whenever an individual stops drinking, the BAL will ________________. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. What type of annuity is it? D Felony. Within how many days does a licensee have to inform the Commissioner of a change of address? Rebates are allowed if it's in the best interest of the client. 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. What is true about beneficiary designations? Which of the following is a true statement regarding taxation of the accelerated benefits? A Cannot be extended or waived under any circumstances. NAIC. The policyowner of an adjustable life policy wants to increase the death benefit. 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. Department of Education. = 2 1/4. c) Dividends are not considered to be rebates. After five years, she decides to leave the company and work independently. All of the following would be considered rebating EXCEPT. I love when a hack helps me to recycle, and makes my life easier. What happens to the premium on the children's rider in a life insurance policy? Company Information; FAQ; Stone Materials. Describe the relationship between potential difference and electrical potential energy. If an insured continually uses the automatic premium loan option to pay the policy premium. D Other than the 3 hours of ethics, licensees may take courses in any line. Annuities can also be used to.. If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? Why is an equity Indexed annuity considered to be a fixed annuity? Because of this, the company charged him a higher rate for his insurance. All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT Issuing or circulating any sales material that is false or misleading would be considered misrepresentation and is illegal. The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. The integer 4 is considered all of the following except a variable. 20/3 He wants to withdraw some money in order to pay medical bills. If a producer discusses policy dividends in a sales presentation, what statement must the producer also make? Define electric potential and electric potential energy. If the policyowner, the insured, and the beneficiary under a life insurance policy are three different people, who had the ownership rights? What percentage of a company's employees must take part in a noncontributory group life plan? 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. 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? B Twisting. A participating insurance policy will pay _________ to the owner based upon actual mortality cost, interest earned and costs. Asked 11/28/2019 3:15:17 PM. D Collecting a lower premium than what's specified in a policy as a token of client appreciation. The insured knows that his financial state will worsen even more with upcoming medical expenses. Which of the following is NOT a pathway in the oxidation of glucose. 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? In life insurance policies, cash value increases. Beneficiaries do not have to have an insurable interest in the policyholder. C. An insurance company director who performs executive, administrative and managerial duties = 15 ? An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. An applicant for a counselor's license must possess a reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel, as well as a reasonable understanding of the Michigan insurance code and possess a good business reputation and good moral character. Under what circumstances could the daughter collect the death benefit? Will result in having to pay the highest premium due to health, history, habits, etc. Which of the following is not a standard mounting dimension for an electric motor? M, who is not licensed as an insurance agent, works part-time in her father's insurance agency. 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? An agent offers to share his commission with a policyholder. Discriminating in benefits based on the insured's habits and lifestyle (such as smoking or dangerous hobbies) is acceptable. 180 days. 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. C$100 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? When a whole life policy lapses or is surrendered prior to maturity, the cash value can be use to.. 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? She also wished to retain all of the rights of ownership. A Defamation A 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). In order for an insurer to legally transact insurance, it must obtain what? D Must be completed by all licensed resident and nonresident producers. The ownership provision entitles the policyowner to do what? What dividend option could she use? All of the following would be considered rebating except: sharing commissions with other licensed and appointed agents. The policy endows when the insured turns 100. An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. A copy of the notice to the Commissioner must be sent to the producer in question within 15 days. Upon the death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. there is no provision in the insurance code that allows for a temporary licensed to be issued on behalf of a producer. The accelerated benefits provision for an early payment of the death benefit when the insured.. An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. This misstatement may result in? 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). All the following could be considered rebates if offered to an insured in the sale of insurance except? C Coercion. Dividends paid to policyholders of a mutual insurer are not considered to be a rebate because the policy specifies that they might be paid. Which is NOT required of an applicant for an insurance license in Michigan? C Dividends from a mutual insurer. D Misrepresentation. 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. If an injured worker has earned 40 quarters of coverage, the worker's status under Social Security disability is? select one: Which set of characteristics will produce the smallest value for the estimated standard error? From what type of insurer did the insured purchase the policy? Which of the following is possible? Which of the following would be considered false advertising? What is the result of this? All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT A Stocks, securities, or bonds. What type of annuity is it? Playing your favorite game, Roblox, on Chromebook is quite achievable, but many users are only familiar with the Play Store method. Which of the following is an example of a producer being involved in an unfair trade practices of rebating? What type of insurance policy would perform the function of cash accumulation? He died on February 28. You should now have gotten the answer to your question Rebating is an unfair trade practice and is regulated by law. A Rebating. 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? And employee has group life insurance through her employer. 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. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. Replace the underlined word with the correct form, How do you play Roblox on a Chromebook without downloading it. A cease and desist order requires an individual to stop doing a specific activity that the Commissioner believes to be violating the Insurance Code. Which of the following, upon conviction, carries a fine of up to $2,000 for each violation? 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. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. 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. E The spouse of a deceased insurance producer. A Misdemeanor A Defamation D Group life insurance is a single policy written to provide coverage to members of a group. An employee quits her job where she has a balance of $10,000 in her qualified plan. In a direct rollover, how is the money transferred from one plan to the new one? What statement concerning group life is true? 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? The company also guarantees the specified dollar amount for each payment and the length of the payout period. The following are nine technical accounting terms introduced or emphasized in this chapter: ResponsibilitymarginTransferpriceCommonfixedcostsContributionmarginCost-plustransferpriceTraceablefixedcostsPerformancemarginProductcostsCommittedfixedcosts\begin{array}{lll}\text { Responsibility margin } & \text { Transfer price } & \text { Common fixed costs } \\ \text { Contribution margin } & \text { Cost-plus transfer price } & \text { Traceable fixed costs } \\ \text { Performance margin } & \text { Product costs } & \text { Committed fixed costs }\end{array} Question. Discrimination. In an annuity, the accumulated money is converted into a stream of income during what time period? 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. It can happen just as long as.. Have a guaranteed face amount and a level premium for the life of the insured. D Unfair Discrimination. What type of policy is this? A Unfair claims The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. Variable life insurance is regulated by..: Equity Indexed Annuities invest on an aggressive basis in order to yield higher returns. When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. baja fresh queso recipe; Tags . Correct Answer: A. 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? The regulation of the insurance industry primarily rest with. Rebating is defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. = 15 * 3/20 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 B$1,000 An agent selling variable annuities must be registered with.. Universal life option A (Level Death Benefit Option) Policy must maintain a specified "corridor" or gap between the cash value and the death benefit, as require by the IRS. Both the offer and acceptance of a rebate are illegal. B Legal, provided that the other insurers are paid royalties for the usage of their names C Policyowner rights and disclosures. How many days does the insurer have to deliver this notice? All of the following are true regarding rebates EXCEPT. B False advertising. What settlement option should the policyowner choose? C 90 days An individual has been diagnosed with Alzheimer's disease. C Rebating. An insured has a life insurance policy from a participating company and receives quarterly dividends. In this case, the insurance company will Must be delivered along with the policy and will provide the producer's name & address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value & death benefit figures for specific policy years. The soon-to-be producer does not want to wait until he receives his license in order to begin working. Upon receipt of notice of appointment, the commissioner must verify the insurance producer is eligible for appointment within how many days? What type of insurance policy may be used to fund this agreement? What is this called? A Provide opinions concerning benefits, coverage, terms, and advantages and disadvantages of a policy or annuity B$1,000 It would be considered unfair discrimination to ask an applicant for their sexual orientation, as well as using sexual orientation as a rating factor to determine insurability. If an insurer terminates a producer, the Commissioner must be notified. The policyowner should have her husband named as the.. A couple owns a life insurance policy with a Children's Term rider. 1 to 75. All of the following are true regarding rebates EXCEPT a) Rebates are only allowed if specifically stated in the policy. Which type of life insurance policy generates immediate cash value? In this state, what type of violation is rebating? When I just opened a new WSL2 Ubuntu 20.04 terminal and ran code . C Illegal under any circumstances f. Get an answer. If an insured continually uses the automatic premium loan option to pay the policy premium.. Figure out how many vegetables to plantEver wonder how many vegetable plants to buy when youre planning your garden? 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. How do you get to Motion settings on iPhone? C An Insurer wants to begin underwriting procedures for an applicant. The agent is guilty of 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 C A reasonable understanding of the provisions, terms, and conditions of the type of insurance he/she wishes to counsel. D A termination issued by the appointing insurer. 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 protects the insured from an unintentional policy lapse due to a nonpayment of premium? If she terminates her group coverage, what is true? Are you having trouble answering the question Rebating is an unfair trade practice and is regulated by law. The ownership provision entitles the policyowner to What is correct concerning the taxation of premiums in a key-person life insurance policy? A temporary license in this state is valid for a maximum of C Mutual Company (Example) your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What is true of the cash surrender nonforfeiture option? When a persons only options for a contract are on a take it or leave it basis; prepared only by the insurer. In most states, if death results from suicide within a certain period, the insurer is not obligated to pay the death benefit therefore.. Michigan's continuing education requirement consists of completing 24 hours of CE each biennium, with at least 3 of those hours in Ethics. Commissioner. A. the spouse or legal representative of a deceased insurance producer If a life insurance policy develops cash no you faster than a seven-pay whole life contract, it is? 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. 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. Who is personally liable for all contracts of insurance unlawfully made with in Tennessee on behalf of an unauthorized insurer? 30 The dividend option that the insured has chosen is called? 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. Discriminating between individuals of the same class with equal life expectancies, or by reason of race, nationality, or ethnic group would be considered unfair discrimination. A Adverse selection The policy contains the optional Payor Benefit rider. B Stock Company The following areas are regulated by the Insurance Department EXCEPT Brokers and financial advisors are prohibited from accepting rebates since they may create conflicts of interest. standard form contract facebook; how to treat mange in cats at home twitter; moon drop grapes uk instagram; arrow olivia sewing table youtube; custom teku glassware mail Convertible without proof of insurability up to the full term death benefit. B Misleading advertising. A corporation is the owner and beneficiary of the key person life policy. 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. C A legal advertising strategy 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? An insured pays $1,200 annually for her life insurance premium. (Example) A man purchased a $90,000 annuity with a single premium, and began receiving payments 2 months after that. This practice is considered The policyowner of an adjustable life policy wants to increase the death benefit. All of the following are penalties for submitting fraudulent claims to the insurer EXCEPT Rebating is an unfair trade practices and is regulated by law all of the following would be considered to be rebating 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 . When the policyowner specifies dollar amount in which installments are to be paid, he/she has chosen which settlement option? Expert answered|GaelM|Points 4547| Log in for more information. B An offer to share in commissions generated by the sale. Annuities are most commonly used to fund a persons retirement, but they can technically be used to accumulate cash for any reason. The payments that that annuitant invests into the variable annuity are invested in the insurer's separated account. What is this an example of? Which nonforfeiture option provides coverage for the longest period of time? May be structured to allow for specific additional amounts of insurance to be purchased at specific ages, dates, and events without proving insurability; however, the coverage is purchased at the insured's attained age and the maximum allowable purchase is specified in the base policy. D A producer in tensional he violated insurance statues. In Michigan the state's continuing education requirement An insured purchased an insurance policy 5 years ago. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. 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.