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