Insurance Policy Delivery and Terms

Backdating Life Insurance Policy

Agent may backdate policy up to 6 months to obtain better premium rate.

Liquidity in Life Insurance

Cash value available to the policyowner.

Viatical Settlement Provider Fee

$300 fee must be paid at initial licensing.

Medical Insurance Bureau

Created to protect insurance companies from adverse selection by high-risk persons.

Insurable Interest

Debtor does not have an insurable interest in the life of the lender.

Cause of Death

Information regarding cause of death is found in the medical information section of the application.

Unfair Trade Practice

Insurance company stating policies are guaranteed by Insurance Guaranty Association.

Executive Bonus

Life insurance policy owned by the employee, not the company.

Needs Approach Method

Need is determined by the predicted needs of the family after the premature death of the insured.

Survivor Protection

Personal use of life insurance to protect children in case of premature death.

Policy Delivery Receipt

Policyowner must sign a delivery receipt when personally delivered.

Premium Collection

Producer collects any due premium from the insured.

Policy Delivery

Producer explains provisions, exclusions, riders, and rating procedures.

Statement of Continued Good Health

Producer has insured sign a statement of continued good health.

Application Completion

Producer is responsible for ensuring application is filled out completely and correctly.

Personal Delivery

Producer personally delivers the policy to help insured understand the contract.

Viatical Settlement Notification

Provider has 20 days to notify the insurance company after completing the contract.

Viatical Settlement Provider

Provider needs witness document, insured's consent to release medical records, and consent to tolling of contestable period.

Preferred Risk Classification

Qualifies for lower premiums compared to standard risk individuals.

Substandard Risk

Results in the highest premium.

Personal Uses of Life Insurance

Survivor protection, estate creation and conservation, cash accumulation, and liquidity.

Viatical Settlement Life Expectancy

Terminally ill insured expected to live no longer than 24 months.

Key Person Insurance

To lessen the risk of financial loss due to the death of a key employee.

Legitimate Insurance Need

Vacation travel expenses would least likely be considered a legitimate need.