The Securities Act of 1933 deals principally with the regulation of new securities issues, while the Securities Act of 1934 deals with the regulation of the secondary securities markets. A) Values are determined by the equity of the stock market. A variable life policy cannot be proposed in a sales scenario unless a prospectus precedes or accompanies the proposal, because it is considered a security. The only other Payment Option shown (Life Income) would stop upon Mr. Smith's death. Managers must be flexible with information provided in varying forms and using inconsistent measures. D) A Retirement Annuity is a form of Decreasing Term. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. The law also regulates sales representatives_ duties. This is the only option that Guarantee's a Full Refund to the beneficiary in the event, death occurs prior to receiving the full purchase amount. Insurers maintain cash values in a separate account, B.

All of the following are characteristics of variable life policies, EXCEPT: Cash value is not guaranteed in variable life policies. Current assets for two different companies at fiscal year-end 2017 are listed here. When benefits begin within a year of the issue date, this is referred to as 'immediate'. $5,000 $5 x 1,000 = $5,000 16 A fixed cost is a cost which _____. All of the following policies could be offered as variable policies, EXCEPT: Term policies do not build cash value, and, therefore, the interest rate is irrelevant. B) Under an original age conversion, the policyowner must pay a financial adjustment in addition to the premium for the new policy.

All of the following policy features may change throughout the policy term of a variable universal life policy with option 2, EXCEPT: The face value of a variable universal life policy with option 2 stays constant. The contract owner buys accumulation units in the variable annuity's separate account rather than actual securities while the contract is still accumulating. (a manufacturer). B) They may be written only as a tax-qualified retirement plan. (Ex.)

What is the primary purpose of the Securities Act of 1933? All of the following are true EXCEPT that indirect costs: a. may be included in prime costs b. are not easily traced to products or services c. vary with the selection of the cost object d. may be included in manufacturing overhead Answer: a Difficulty: 2 Objective: 2 Terms to … Budgeting is an executive responsibility.

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All of the following statements about the conversion of a term policy are true EXCEPT. C) is purchased over the years prior to the date on which the annuity begins. All of the following are true regarding Variable life insurance, except: A. Managerial accounting is different from financial accounting in that: Please contact us via live chat if you face difficulty in any of the question or exercise. A straight life annuity provides income for the annuitant's lifetime only. What document must applicants for variable life insurance receive at the time of policy application? D) a fixed dollar amount in regular installments, but only for the remainder of the annuitants life expectancy. The focus of budgeting is planning.e. When overhead costs vary with production, they are called variable overhead. Fund managers normally charge a management fee, which is stated in the prospectus and in the Variable contract. A flexible premium annuity simply allows the annuitant to place additional payments into the annuity once it has been established. Sign up for free and study better. © 2003-2020 Chegg Inc. All rights reserved. This will be based on the mode of payment selected (monthly, quarterly, annually, etc.) 47. Get the app to study this deck anytime, anywhere. He has a limited amount of income and assets, but needs a large amount of insurance protection. Privacy Policy cash value in a variable life policy is connected to the insurer's: Variable life policies have a guaranteed minimum death benefit, which is the policy face amount, but the policy cash value is not guaranteed since it is tied to the separate account. Which of the following applies to variable contracts? Suppose that you want your life insurance to last... What kind of term life insurance policy allows you... Coinsurance refers to: a. Download our app to study better. Fixed Annuities do not use separate account(s); Variable Annuity values fluctuate according to the performance of the separate account(s); and Variable Annuities require both a life license and securities license. D) Within 60 days, once proper paperwork is completed. C) Only people on fixed incomes can purchase annuities. Variable universal life is universal life insurance with a separate account.