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.
