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MIB

A nonprofit organization that contains underwriting information on applicants for life and health insurance

health insurance grace period

10 days

penalty for transacting insurace without proper license

1k

penalty for transacting insurance w/o license

1k

commisioner hearing how many days notice

20 days

how many months for LTC in hospital coverage

24

how many hrs education each license period

3

how often complete education how many years

3

3 year period hours of education needed

30

demand to meet with the commissioner

30 days

how long health care free look period

30 days

medicare supplement free look provision how long

30 days

insurance fraud maximum time in prison

4 years

social security elimination period

5 months

minimum credits for social security disability

6 credits

continuous care coverage how many hours education

8

licensing for another state how many days

90

proof of loss time frame for health insurance

90 days

Roth IRA

After tax contributions. Can go past 70 1/2 . Grow tax free as long as it is open at least 5 years.

4 elements of contract

Agreement(offer and acceptance), consideration, competent parties, legal purpose

universal life insurance policy

Annually renewable term policy with a cash value account

insurable interest

Applicant must experience a financial loss due to an accident or sickness that befails the insured

Dividends

Are a return of excess premiums, NOT taxable to the policyowner and are NOT Guaranteed!

decreasing term policy

level premium and a death benefit that decreases each year. usually used to insure mortgage or other debts if the insured dies prematurely. Coverage decreases as loan balance decreases. Death benefit 0 at the end of policy term. Convertible but not renewable.

living benefits of whole life insurance

loan values and retirement income

misrepresentation

making false or misleading statements with the intent to defraud another

group policy to individual policy

must have 5 years

dividend options

paid up additions, accumulated at interest, reduction of premium

indemnity

pays a fixed amount each day a person is in the hospital

accidental death rider

pays a multiple of the face value of the policy if death occurred before 90 days after the accident. If not, it only pays face value

Medicare part b

pays for physician services, diagnostic tests, physical therapy

Entire Contract provision

policy and copy of application

consideration from insured

premium payment, representations on application, submitting statement of good health

contributory plan

premiums are shared between employer and employees. 75 percent of employees must be on plan.

contract of adhesion

prepared by only the insurer, the insureds only option is to accept or reject

person other than viator enters into viatical settlement

provider

coinsurance

provision that provides sharing of expenses between insured and insurance company

2 types of risk

pure and speculative

nonforfeiture covers longest period of time

reduced paid-up

level in level term insurance

refers to face amount

guaranteed renewable disability insurance policy

renewable at the insureds option up to a certain age

insureds right to cancel coverage

renewal provision

mutual insurer

return surplus money to policy holders

underwriting

risk selection and classification

equity indexed innuities

seek higher returns

inspection report

shows info about hobbies and other cool stuff

a nonqualified retirement plan

split-dollar plan

STOLI policy

stranger originated life insurance policies (bought by stranger)

classifications of health

substandard, standard, preferred

personal uses of life insurance

survivor protection, estate creation and conservation, cash accumulation and liquidity

tax imposed by social security

taxable wage base

option B

Increasing death benefit option. Death benefit includes annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases. At any point in time the total death benefit will always be equal to the face amount of the policy plus the current amount of cash value.

individual retirement account (IRA)

Individuals make contributions with pretax dollars until the age of 70 1/2. Allowed specified dollar amount eachyear or 100 percent of salary if less than amount expressed.

Reinstatement

Lapsed policy back in force. Has 3 years after lapse. MUST provide evidence of insurability. Pay back all missed premiums plus interest.

option A

Level death benefit option, death benefit remains level while cash value gradually increases

Incontestibility

Prevents insurer from denying claim due to statements in the application after the policy has been in force for 2 years.

Free look period

Starts when the owner receives the policy

risk in a fixed annuity

the insurer has the risk

elimination period gets shorter

the premium gets higher

insurance

the transfer of risk

disclosure statement

to explain features and benefits of a proposed policy to a consumer

purpose of coinsurance provisions

to help insurance company prevent overutilization of the policy

paid up addition

uses dividend to purchase a smaller amount of the same type of insurance as the original policy

reduction of premium option

using extra dividends to pay next premium

earliest a policy can go into affect

when the policy is signed and a check is given to the agent

metal levels

bronze-60 silver-70 gold-80 platinum-90

irrevocable beneficiaries

can be changed with agreement of that beneficiary

Nonforfeiture options

cash surrender, extended term, reduced paid up

liquid resources in life insurance contract

cash value available to the insured

insurer needs this to transact insurance in a state

certificate of authority

what you need to be an administrator

certificate of registration

variable life insurance

death benefit can increase or decrease, at least minimum stated in policy

annuity that makes payments 2 years later

deferred

broker

do not need to be appointed

noncontributory plan

employer pays all premiums. 1o0 percent of employees on plan.

defamation

false statements about the financial condition of any insurer

insurers should eliminate these from illustrations

footnotes and caveats

primary care physician in an hmo

gatekeeper

payor benefit

if a parent dies or becomes disabled for at least 6 months, the insurer will waive the premium until the minor reaches a certain age, such as 21.

Rider that would NOT increase premium

impairment rider

return of premium life policy

increasing term

return of premium

increasing term insurance policy

403b plan

individual retirement plan for public school teachers

who can legally bind a contract

insurer

insuring clause

insurer agrees to provide life insurance which will be paid to designated beneficiary when proof of loss is received by insurer

optionally renewable policy

insurer can increase premiums

who has the authority to make changes to an insurance policy

insurers executive officer

conditional receipt

intended to provide coverage on a date earlier then the date of the issuance of the policy

why is an equity indexed annuity considered to be a fixed annuity

it has a guaranteed minimum interest rate

OBRA

law passed to authorize the NAIC to develop a standardized model for medicare supplements

fiduciary capacity

agent handling premium funds while conducting business

guaranteed insurability rider

always insurable (usually every 3 years)

gross annual premium

annual cost of mortality plus expenses

what percent of individualy owned disability income benefits is taxable

0 percent

POS Point of Service Plan

Combination of HMO and PPO plans.

COBRA

Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense

Nonforfeiture

Guarantees. Cant be forfeited.

Return of premium rider

Using increased term insurance. If whole life, return of premiums paid can also be paid to the beneficiary.

Residual disability

Will pay an amount to make up the difference between what the insured would have earned before the loss.

SEP

a benefit plan that is designed to be provided by a small employer for the benefit of the employees


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