A nonparticipating - Study guides, Class notes & Summaries

What is considered to be the primary reason for buying life insurance? - ANSWER Provide death benefits Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Feguson Act, what is the minimum penalty for this? - ANSWER $10,000 or up to 1 year in jail A nonparticipating company is sometimes called a(n) - ANSWER Stock insurer, because policyholders do not participate in dividends resulting from stock ownership. ...

Wisconsin Life Insurance Exam Prep 2024 Questions and Answers 2024 / 2025 (Verified Answers by Expert) Stock insurer ANS - Owned by stockholders/shareholders - Pays taxable dividends to shareholders if a profit ismade -Issues nonparticipating policies (non-PAR) 2. Mutual Insurer ANS - An insurer that is owned by its policyholders - If company is profitable, excess premiums are returned as non-taxable dividend -Issues participating (Par) policies 3. Fraternal Benefit Societies ANS -Life ...

Group Life Insurance - life insurance that provides a master policy for a group; each eligible group member receives a certificate of insurance Individual Life Insurance - purchased by individuals; usually greater face value Permanent Life vs. Term Life - Perm Life: whole life insurance that is effective for the entire life of the insured up to age 100. Term Life: insurance that is effective for a temporary time period, designated by the policy. Participating Life vs. Nonparticipating Life...

Reserves - ANSWER Funds held by the company to fullfull future claims. Funds are set by the state department of insurance. Multi-line Insurer - ANSWER An insurance company selling more than one line of insurance. (Ex. Home, auto, health, etc) Stock Companies - ANSWER Owned and controlled by stockholders, whose investment set the safety margin. Guaranteed fixed premiums. Nonparticipating policies. nonparticipating policy - ANSWER Insurance under which the insured is not entitled to share...

EPO Answer ...provides benefits to subscribers who are required to receive services from network providers IDS Answer ...organizations of affiliated providers sites that offer joint healthcare services to subscribers HMO Answer ...providers comprehensive healthcare services to voluntarily enrolled members on a prepaid basis POS Answer ...patients can use the managed care panel of providers (paying discounted healthcare cost) or self-refer to out-of-network providers (and pay higher cost...

Joe and Mary are a married couple and both carry insurance from their employers. Joe was born on February 23, 1977 and Mary was born on April 4, 1974. Using the birthday rule, who carries the primary insurance for their children for billing? A. Joe, because he is the male head of the household. B. Mary, because her date of birth is the 4th and Joe's date of birth is the 23rd. C. Mary, because her birth year is before Joe's birth year. D. Joe, because his birth month and day are ...

Who is protected with the "other insurance with this insurer" provision? - Answer Insurance company A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value. The total premiums paid had totaled $16,000. What were the federal income tax consequences to the policyowner on receipt of the cash value? - Answer $16,000 was received tax-free and $4,000 as ordinary income After the extended term life nonforfeiture option is chosen, the available insurance wil...

Adverse Selection correct answer: Insuring of risks more prone to loss than the average Agent/Producer correct answer: legal representative of an insurance company Applicant/Proposed insured correct answer: a person applying for insurance Hazard correct answer: Conditions that increase the probability of a loss Moral correct answer: tendency toward increased risk (driving fast) Morale correct answer: indifference towards risk (not locking the door) Indemnity correct answe...

Life Insurance Exam Prep Questions and Answers Rated A+ Primary purpose for a rating service company such as A.M best? To determine financial strength of an insurance company Primary reason for buying life insurance? Provide death benefits What is described as an insurers ability to make unpredictable payouts to its policy owners? Liquidity What is described as a plan in which an employer pays insurance benefits from a fund derived from the employers current revenue? Self-Funded Plan Which p...

Xcel Solutions Pennsylvania Insurance Test Questions and Answers Already Passed A nonparticipating company is sometimes called a Stock Insurer The Do Not Call Registry offers exemptions for calls placed from all the following EXCEPT Insurance Sales Calls Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? $5,000 A plan in which an employer pays insura...