Life insurance basics
insurable interest may exist between the policyowner and the insured when the policy is insuring any of the following
1 policyowners own life 2 the life of a family member (a spouse or a close blood relative ) 3 the life of a business partner key employee or someone who has a financial obligation to the policyowner ( for example a debtor has a financials obligation toa creditor so the creditor has a valid insurance interest in life of the debtor )
viator has
15 calendar days to rescind a viatical statement
permanent life insurance
A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid.
Field underwriter
A life insurance producer is the company's
key employee
An employee whose loss to a firm through death or disability before retirement would have economic effects on the company. (the business ends up being the following; applicant, policyowner, premium payer, and beneficiary )
Buy sell is also called
Business continuation agreement
3 years
Evidence that requires have been maintained should be kept for
Insurance advertising in this state
Insurers must submit 3 copies of all advertisement to the department of insurance for approval. One a mail order solicitation has been filed it may be used for 2 years without additional filing. Advertising material will remain filed for 4 years or until the regular examination of the company whichever is longer. Testimonial refers to benefits received under a contract. The specific claim data should be retained by the insurer for 4 years or until the filing of the next regular examination of that insurer whichever is longer
Participating vs Nonparticipating
Only participating policies distribute dividends to policy owners
30 days
Pa certification of a aforementioned notification must be provided annually ____ of the anniversary of the original certification
Insurers cannot advertise
Protection by the insurance guaranty association
needs approach
The predicted needs of the family using: DIME - Debt - Income - Mortgage - Expenses
5 business days
The replacing insurer must notify the existing insurer of a replacement within ____ following the receipt of the application or on the day the policy is issued whichever is sooner
chronically ill
a condition in which a person is unable to perform at least 2 activities of daily living or that requires substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment
90 days
all viatical applications will be approved or disapproved by the department within this time frame
viatical settlements
allow someone living with a life-threatening condition to sell their existing life insurance policy and use the proceeds when they are most needed; before their death
viatical settlement purchaser
anyone who gives a sum of money as consideration for a life insurance policy or interest in the death benefits of a life insurance policy
if life expectancy is less than 1 year
contact can not be made more than once per month
3
contact cannot be made more often than every _____ months
3 business days
funds will be sent to the viator , settlement provider acknowledges that the ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated
human life approach
gives the insured an estimate of what would be lost to the family in the event of the premature death of the insured
the policyowner must have insurable interest in the life of the insured
in the life of the insured
100
licensure as a viatical settlement broker
300
licensure as a viatical settlement provider
terminally ill
means a condition (illness or sickness) that can reasonably be expected to result in death within 24 months
viatical settlement broker
means a licensed person that, for a fee, negotiates viatical settlement contracts between the viator and viatical settlement providers. The viatical settlement broker represents the viator.
viatical settlement provider
means a person other than aviator that enters into a viatical settlement contract
A policy summary
provides specific information about the policy purchased, such as the premium and benefits.(features and elements )
life settlements
refers to any financial transaction in which the owner of a life insurance policy sells a life insurance policy to a third party for some form of compensation, usually cash
viatical brokers
represent the insureds
viatical producers
represent the providers
Underwriting
risk selection and classification process
liquidation
selling assets in order to raise capital
viators
the insured are referred to as this
insurable interest
to purchase insurance , the policyowner must face possibility of losing money or something of value in the event of a loss. to purchase insurance the policyowner must face the possibility of losing money or something of value in the event of a loss. This must exist at the time of the application
Stock purchase
used by privately owned corporations when each stockholder buys a policy on each of the others
Cross purchase
used in partnerships when each partner buys a policy on the other's
Stock Redemption
used when the corporation buys one policy on each shareholder
Entity purchase
used when the partnership buys the policies on the partners
Fixed vs variable insurance
Fixed offers guaranteed minimum or fixed benefits that are stated in the contact variable cash values accumulate based upon a specified portfolio of stocks without guarantees of performance. Paced with inflation
Surrender Comparison Index Disclosure
Provides a life insurance purchaser with a means of making a cost comparison of the same types of life insurance policies having the same premium payment period and pattern
Buyers guide
Provides basic, generic information about life insurance policies that contains, and is limited to, language approved by the Department of Insurance.
Term life
Temporary life insurance provider for a specific period of time. It is also known as pure life insurance
viator
means the owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract
within 20 days
of completing the contract the viatical settlement provider must give written notice to the insurer that issued the insurance policy that the policy has or will become a viaticated policy