Life Insurance Flashcards 5
Characteristics of group life insurance
- Amount of coverage is determined according to nondiscriminatory rules - Individuals covered under the policy receive a certificate of insurance - Certificate holders may convert coverage to an individual policy without evidence of insurability - Premiums are determined by the age, sex, and occupation of the entire group
The three examples of insurable interest
- Business partners - Employer in employee - Child in parent
Examples of insurance transactions
- Soliciting a policy - Negotiating Coverage - Advising a policyholder regarding a claim
Life Insurance Illustration
A presentation of nonguaranteed elements of a policy
The date of the medical exam
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
Refund the premiums paid
An insured committed suicide 6 months after his life insurance policy was issued. The insurer will...
Before accepting the initial premium
Assuming that a policy does not contain an unconditional refund provision of at least 10 days, when must a Buyer's Guide and policy summary be provided?
3 days
How long within requesting an investigative consumer report must an insurer notify the consumer that the report will be obtained?
3
How many hours of CE must be competed in ethics each licensing period?
The producer must provide the applicant with a Notice Regarding Replacement (NRR)
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
5 years
If a group life plan is terminated, how long must someone have been on the plan in order to convert?
Guaranteed insurability rider
If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a
The total death benefit minus the overdue premium
If a person dies within the grace period of their annual life insurance payment, how much will their beneficiary receive?
Welfare benefits
Not a benefit under social security
Increasing
ROP has what type of term coverage?
The annuity period
The period of time during which accumulated money is converted into income payments
Deferred
There is no accumulation period in which kind of annuity?
Cash option
When an insurer receives an annual life insurance dividend check, they've chosen this arrangement
Tax deductible
Whenever an employer buys group term life insurance for his employees, this expense is considered
An annuity
Which product provides income for a specified number of years or for life and protects against outliving one's money?
An individual not covered by an employer-sponsored plan who has earned income
Who can make a fully deductible contribution to a traditional IRA