Hamro Insurance - A Blog for Insurance Related Information

Life insurance policies will normally pay for losses arising from

October 30, 2022 by admin

Life insurance policies will normally pay for losses arising from

Options:

a) commercial aviation
b) war
c) suicide
d) hazardous jobs

The Correct Answer Is:

a) commercial aviation

Life insurance policies will normally pay for losses arising from commercial aviation. The life insurance policies that are issued to individuals and families will normally pay for losses arising from commercial aviation. This means that the policy holder will be reimbursed for any expenses that they incur as a result of a plane crash, as long as the crash occurred while the policy was in force.

For most people, life insurance policies provide financial security in the event of death. But what if you die in a commercial aviation accident? Life insurance policies will normally pay out for losses arising from such accidents, including any funeral expenses and lost wages. Policies typically have provisions for coverage up to $250,000 per person, so your family will be well-protected should something happen to you while travelling in an aircraft. If you’re involved in a commercial aviation accident and your policy doesn’t cover those types of losses, make sure to speak with an experienced insurance lawyer about your options.

The automatic premium loan provision is designed to

October 30, 2022 by admin

The automatic premium loan provision is designed to

Options:

a. provide a source of revenue to the insurance company
b. avoid a policy lapse
c. allow a policyowner to request a policy loan
d. allow a policyowner to take out additional coverage without evidence of insurability

The Correct Answer Is:

b. avoid a policy lapse

The automatic premium loan provision is designed to avoid a policy lapse. The provision allows the insurance company to continue providing coverage if premiums are not paid on time, ensuring that policyholders have the coverage they need in case of an accident. By automatically enrolling customers in a premium loan plan, the insurance company can ensure they are paying their premiums on time and avoid any lapses in coverage.

Example:

The Department of Veterans Affairs (VA) has announced a new automatic premium loan provision designed to avoid a policy lapse. The VA will now automatically provide premium loans to eligible veterans who have lapsed on their insurance policies. This will help ensure that veterans have the coverage they need, without having to search for or apply for a new policy. This change is expected to make it easier for veterans to remain insured and improve their chances of avoiding a lapse in coverage.

Credit Accident and health plans are designed to

October 30, 2022October 29, 2022 by admin

Credit Accident and health plans are designed to

Options:

A) permit creditors the ability to require that coverage be purchased through insurers of their choice
B) provide permanent protection
C) help pay off existing loans during periods of disability
D) not permit free choice of coverage selection

The Correct Answer Is:

C) help pay off existing loans during periods of disability

Credit Accident and health plans are designed to help pay off existing loans during periods of disability. Disability can happen for many reasons, such as a car accident or sickness. When disability occurs, the person may no longer be able to work and may need help to repay their existing loans. Credit accident and health plans can help cover some of the costs associated with disability, such as medical bills and loan payments. These plans are usually offered by lenders or insurers, and they can help people stay out of debt while they’re recovering.

Life income joint and survivor settlement option guarantees

October 29, 2022 by admin

Life income joint and survivor settlement option guarantees

Options:

a) Income for 2 or more recipients until they die.
b) Payment of interest on death proceeds.
c) Payout of the entire death benefit.
d) Equal payments to all recipients.

The Correct Answer Is:

a) Income for 2 or more recipients until they die.

Life income joint and survivor settlement option guarantees income for 2 or more recipients until they die. If you are considering a life income joint and survivor settlement option, it is important to know that this type of settlement guarantees income for 2 or more recipients until they die. This is an important consideration when making a decision because it can provide financial stability and protection in times of need. Additionally, the survivorship benefits can provide ongoing support for the beneficiaries after their death.

A beneficiary change can occur

October 29, 2022 by admin

A beneficiary change can occur

Options:

a) only upon the request of the revocable beneficiary
b) only on specified dates within the policy
c) normally at any time during the policy term
d) at no time

The Correct Answer Is:

c) normally at any time during the policy term

A beneficiary change can occur normally at any time during the policy term. A beneficiary change can occur normally at any time during the policy term, regardless of whether the beneficiary is still alive or not. When a beneficiary dies, the insurance company must notify all beneficiaries of their right to receive benefits. If there are multiple beneficiaries and one of them does not want the policy to continue paying out benefits to them, they can contact the insurance company and request that their name be removed from the list.

How are annuities given favorable tax treatment

October 29, 2022 by admin

How are annuities given favorable tax treatment

Options:

A) Gains are tax deductible
B) Gains are tax exempt at distribution
C) Gains are taxed at distribution
D) Gains are converted to tax credits

The Correct Answer Is:

C) Gains are taxed at distribution

Annuities are given favorable tax treatment because gains are taxed at distribution. This means that the income generated from annuities is taxed less than other forms of income. Annuity providers may also be able to take advantage of tax breaks, such as the retirement savings contributions credit, which can reduce your tax liability even further.

Which of the following best describes the MIB?

October 29, 2022 by admin

Which of the following best describes the MIB?

Options:

a) it’s a member organization that protects insured against insolvent insurers.
b) it’s a rating organization for health insurance.
c) it’s a non profit organization that maintains underwriting information on applicants for life and health insurance.
d) it’s a government agency that collects medical information on the insured from the insurance companies.

The Correct Answer Is:

c) it’s a non profit organization that maintains underwriting information on applicants for life and health insurance.

MIB is a non profit organization that maintains underwriting information on applicants for life and health insurance. This information includes the applicant’s name, address, social security number, and other identifying information. MIB also stores data on the premiums paid for life and health insurance policies issued by its members. This information can be used to help insurers improve their underwriting processes.

Insurance represents the process of risk

October 29, 2022 by admin

Insurance represents the process of risk

Options:

A) selection
B) avoidance
C) transference
D) assumption

The Correct Answer Is:

C) transference

Insurance represents the process of risk transference. By transferring risk from an individual or organization to an insurance company, individuals and organizations can mitigate potential losses associated with potential risks. In many cases, insurance provides a financial cushion that enables individuals and organizations to absorb anticipated losses without having a significant effect on their day-to-day operations. Insurance is also beneficial because it creates a market for risk management, thereby encouraging prudent behavior.

In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered

October 29, 2022 by admin

In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered

Options:

A) voidable
B) conditional
C) aleatory
D) unilateral

The Correct Answer Is:

D) unilateral

When someone buys insurance, they are legally obligated to the insurer. This is due to the fact that the insurer is the only party in the contract who is legally obligated to perform. This means that an insurance contract is considered unilateral and not bilateral. Unilateral contracts are often disadvantageous for both parties because it creates a lack of trust. The buyer cannot be sure that the insurer will be able to fulfill its promise and this can lead to distrust and possibly a lawsuit.

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

October 29, 2022 by admin

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

Options:

A. Return of premiums paid
B. Cash value plus interest
C. $20,000 death benefit
D. Face amount plus interest

The Correct Answer Is:

C. $20,000 death benefit

If K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident then $20,000 death benefit will be paid by insurance company. When an individual is in a car accident, they may be worried about the potential injuries they may sustain. However, someone’s estate can also be at risk if they do not have an endowment policy in place. The purpose of an endowment policy is to protect someone’s assets in the event of their death. Here are some things to keep in mind when creating or updating your endowment policy:

Make sure you have a comprehensive understanding of what is covered under your policy.
Review your beneficiary list periodically to make sure that noone has been omitted and that the people you want to receive your assets are on the list.
Establish a fund structure that will provide adequate protection for your assets.