Underwriting practice exam
Elimination Period - Disability Policy
1st day of disability -> day insured receives benefits
Medicare Part D
25% of the prescription cost
Insurer must maintain replacement register for a replaced policy for
3 years
GA Free look period
30 days
amount of credits needed for Social Security disability benefits
6 credits needed
Modified Endowment Contract
A life insurance policy develops cash faster than a 7-pay whole life contract
when an underwriter approves coverage
Acceptance
Pay-In Period
Accumulation period of an annuity
Least expensive first year term
Annually renewable
premium of a Survivorship vs joint life premium will be
Higher premium cost
Does not increase premium for policy
Impairment rider
Return of Premium term life policy
Increasing Term Coverage
2 years
Insurer is unable to deny claims due to misrepresentation after
Authorized
Insurer meets states requirements to transact business
Unfair Trade Practice
Make a statement that an insurer's policies are guaranteed through the Insurance Guaranty Association
2,500
Maximum penalty for noncompliance with the Fair Credit Reporting Act
Annuitant
Must be a natural person
Decreasing Term Policy
Premium stays level, face amount decreases
Subrogation
Prevents the insured from collecting twice for the same loss
Basic Expense
Provides coverage on a first dollar basis
Consideration
Value offered by the insured to the insurer
Controlled business
When producers sell to themselves/close friends+family
offers are made during
applicants submit an application to the insurer
CONDITIONAL receipt
insurer has not yet approved application and issued policy
Not a feature of noncancellable policy
insurer may terminate the contract only at renewal
Contract of Adhesion
prepared by one submitted to the other on a take it or leave it basis
Aleatory
unequal exchange in a contract
