Life repeats 🤦🏻‍♀️🤦🏻‍♀️

Insurance bond

$2,500-5% not exceed $50k

An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out?

$50,000

Insuring Clause

- Agreement between the insurer and the insured - Insurers promise to pay the death benefit upon insureds death - located on face page

Policy Summary

- Specific information about policy being issued - usually provided prior to or at policy delivery

Annually Renewable Term

-Renews each year without proof of insurability -Premiums increase due to attained age

Nonforfeiture Options

. (1) Cash (2) Reduced Paid-Up (3) Extended Term Insurance

Free Look Period

10 days

Within how many days may a person who being examined by the Director for nonfinancial business practices request a hearing after receiving the examination report

10 days

Self Employed (HR 10 or Keogh)

1000h per year Or partnered must own 10 % of business

Reinstatement of License

12 months $360 penalty

How many days after investigation may person request hearing?

14days

How many days most the premium be return after free look?

15 days

Primary Beneficiary

1st claim on death benefit if the insured dies

How many hours before renewal of insurance must compleate of education

24h

Contingent Beneficiary

2nd claim on death benefit if the primary beneficiary dies before the insured

Before investigate report costumer must be inform how many days ?

3 days prior investigate

How many days' notice must an insurer provide to an insured regarding the lapse of a policy due to outstanding loans?

30 ?❤️💕💕💕

contribution

75% employees

Fiduciary

90 days hold premium Class A misdemeanor-less than $150 Class 3 Celiny- more than 150

Consideration Clause

A clause in a Life policy specifying the premium due for the insurance protection and the frequency of payment (also called Mode). The more frequent the Mode of Payment, the higher the cost, since most insurers charge service fees for budget payments. The cheapest Mode is annual.

Roth IRA

A personal savings plan; contributions are not tax-deductible; earnings are tax-free Tex free if enroll 5 years

403 (k) plan

A tax-deferred retirement plan for teachers, hospital workers, ministers, and some other public employees

Underwriter may request examination

APS

Absolute Assignment v. Collateral Assignment

Absolute - transfers of ALL rights Collateral - partial rights

What is the maximum loan amount a policyowner may withdrawal from a variable universal life insurance policy?

An amount not exceeding the cash value

Life Settlement?

An arrangement that allows the policy owner sell their existing life insurance policy to a third party for compensation.

Life Settlement

An arrangement that allows the policyowner sell their existing life insurance policy to a third party for compensation.

Which statement below is INCORRECT regarding the type of term insurance that fits best with the applicant's needs?

Applicants who may require a larger death benefit in the future should buy convertible term insurance

What is disclosure?

Basic information about cost and coverage of Insura

What is a nonforfeiture option?

Cash surrender Reduce paid up Extended term

indexed life (equity index whole life)

Cash volue-S&P 500

Conditional

Certain conditions has to be met

Revocable Beneficiary

Change with out consent

An insured and his spouse recently had a child. Which of the following riders would allow the couple to insure the child for a limited period of time at a specified amount ?

Children's term rider

Adjustable Life Insurance

Combines features of both term and whole life coverage with the length of coverage and amount of accumulated cash value as the adjustable factors. Premiums may be increased or decreased to fit the specific needs. Such adjustments are not retroactive and apply only to the future.

Conditional Receipt

Coverage will be effective either on the date of the application or the date of the medical exam, whichever occurs last, unless coverage is declined or rated, or issued with riders excluding specific coverage.

characteristic of consumer report

Credits Character Reputation Habits

Fixed Period

Equal installments Specific period of years Continue to beneficiary

If holding premiums more than 15 days must ?

Establish PEFTA

Insurance interest must ..........between insured and insured at the time of aplication

Exist

An applicant may challenge information discovered as a result of an investigative consumer report under which of the following Acts?

Fair Credit Reporting Act

A married couple wants to include the entire family in their whole life policy under one rider. Which of the following riders will help them achieve that goal?

Family term

violations of regulations

Fine 1000$ Hearing 20-30 days after service Hearing in writing 10 days Teach day $100 max $5000

Class 4 Felony

Funds collected while violating regulations

What is buyers guide ?

General information

When policy is issued the insurable I treat is ?

Gone

Underwriting will check applicant ?

Health Occupation Lifestyle Hobbies

What is HIPPA

Health Insurance Portability and Accountability Act of 1996

All of the following information needs to be included on an application for life insurance EXCEPT

Health insurance policies in force

Substandard risk has ?

Higher premium

Flexible Premium

Increase -decrease

Who past for examination?

Insurance

whole life insurance

Insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be.

Who is a Viator?

Insured

investigate consumer report

Interview : Associate Neighbor Fiends

What is application

Is a main source of underwriting

Which of the following is TRUE of a qualified plan?

It has a tax benefit for both employer and employee.

Class A Misdemeanor

Knowledge violates regulation

Reinstatement Clause

Lapsed policy but in force

Variable Life (or Variable Whole Life)

Level premium Coverage for life Death benefit guaranteed Cash volue Not guaranteed Policy loan -yes Cash withdrawal no

Limited Pay Whole Life

Level premiums limited to certain time period, less than life.

What is insurance interest

Loosing something volue in the event of loos

What is Prefers risk?

Low premium

Term Life (Pure Life)

Low premium Maximum age If dies during policy -benefits paid Cancel prior death - nothing will Be paid

What is standard risk ?1

Majority people have standard risk

Applicant

Makes offer when submitting applications

What is settlement option?

Method of paying death benefit

Universal Life Insurance

Minimum premium - keeps policy in force Target premium -recommended amount

When must disclose be deliver ?

No later then at the time of application

SIMPLE plans are available to groups of how many employees?

No more than 100

What is 3 party ownership?

Not insured in contract Minors Business

Dividends received on participating life insurance policies are

Not taxable because they are a return of unused premiums

USA Patriot Act

October 26 2001

Unilateral

One side promise

Death Benefit Options

Option A level death benefit Gap Applied by IRS 12/31/84 Option B Increasing death benefit

Mutual Companies

Owned by policy owners

Stock Companies

Owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses.

Single Premium Whole Life

Paid up for life with one large premium payment

Insurers may request examination what kind

Paramedical

Aplication has

Part 1 general Part2 medical information

Paid-Up Option

Pays off the policy more quickly than scheduled. If the company's overall performance declines, premiums may have to be resumed.

Traditional Whole Life

Permanent until age 100

Term insurance is renewable and convertible

Premium is level all time Premium figure out at attaining age

Ordinary Whole Life Insurance

Premium paid until death or 100 years

What is mode ?

Premium- Annual Semiannual Monthly

Survivor Protection

Providing funds for surviving spouses and dependents

What is a dividend?

Return of access premium Cash Reduction of premium Paid up addition

Variable Universal Life

Separate account Regulated by SEC Registered with FINRA

What does the application of contract of adhesion mean?

Since the insured does not participate in preparing the contract, any ambiguities would be resolved in favor of the insured

Insurance transaction

Solicitation, negotiations, sale, advising

The family term rider incorporates

Spouse term and children's term

What is level term insurance

Stays the same Death benefit don't change Premium is the same

What is STOLI

Stranger-Originated Life Insurance

What is SAr

Suspicious Activity Report If $5000 or more has to be reported

Adhesion

Take it or leave it

a person is working toward becoming permanently licensed as a producer and is issued a temporary license, what else must the person also do

Take training course

Which of the following statements is true regarding SIMPLE plans?

Tax deferred until funds are withdrawn

Decreasing term

Term life insurance in which the face amount of the policy decreases over time in scheduled steps. Most often used to cover a debt obligation (mortgage).

When term insurance is added to the main policy to enhance the policy or provide added benefit or coverage, it is called a

Term rider

Paid-Up Additions

The dividends are used to purchase a single premium policy in addition to the face amount of the permanent policy.

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT

The policy is owned by the company

Which of the following is TRUE regarding premium in a 10-year level premium policy ?

The premium will remain level for 10 years

According to the Common Disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?

The primary beneficiary died before the insured

What is converting ?

Transfer for term insurance to whole life

Conversion Privilege

Transfer form group to individual Evidence of insurability not required Employee has 31 days after cancellation still covered If 5 yrs in group coverage he /she can be covered in the individual with the same coverage

Universal Life

Type of life insurance policy, similar to cash value but with better projected returns.

Who makes the acceptance in insurance

Underwriter

Which of the following types of insurance is investment based, has a level fixed premium, and a nonguaranteed cash value?

Variable Whole Life

Common Disaster Clause

When insured and primary die at the same time, it is assumed that the primary died first

What will happen when he or she skips payment I. Universal life insurance? Will the policy lapse

Will not lapse -premium will be deducted form Cash volue

IRA

Withdrawal before 59,5 10% penalty

Physical Hazard

a physical condition that increases the chance of loss

401(k) plan

a tax-deferred retirement plan offered to employees by their employer

Variable Universal Life

a universal policy where the premiums are invested in variable rate earning assets

contract

agreement Consideration Competent parties Legal purpose

Insurance component

always annually renewable term insurance

Personal

between insurer and insured

Morale hazard

carelessness

Nonforfeiture Options

cash value, reduced paid-up insurance, extended term insurance

What is entire contract

copy of application and policy

noncontributory

employer bears the entire cost 100% employeea

To purchase insurance, the policyowner must face the possibility of losing money or something of value in the event of loss. What is this concept called?

insurable interest

With Adjustable Life, the owner can change all of the following EXCEPT

insured

Which of the following statements describes one of the reasons individuals purchase life insurance?

it creates an immediate estate

An agreement that is enforceable by law is known as what kind of contract ?

legal

Key Characteristics of whole life insurance

level premium, death benefit, cash value, living benefits

Group Life Insurance-single life

life insurance that provides a master policy for a group; each eligible group member receives a certificate of insurance Annually renewable term

Cash Value guarantees in a whole life policy are called

nonforfeiture values

Irrevocable Beneficiary

one that cannot be changed without the beneficiary's consented

Key person insurance can provide protection for all of the following economic losses to a business EXCEPT

pay the death benefit to the estate of the insured

Life Income (straight life)

provides recipient with an income that he or she cannot outlive - installment payments are guaranteed for as long as the recipient lives Single Life: provides a SINGLE beneficiary income for the rest of their life Joint & Survivor: guarantees an income for 2 or more recipients Life income with period certain option: provides lifetime income & a guaranteed installment period Joint Life with Term Certain: policy pays to 2 or more persons & stops paying at the death of the 1st (if within specified term, pymtns will continue to the other person until the end of the specified term) Life Refund Income: comes in either a cash refund form or an installment refund form

All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT

reports may be sent to anyone who requests one

Which of the following would be likely to establish a SEP?

small employers

Which of the following is a permissible reason for an insurance company to contest payment of a claim based on statements in the application?

the application contains material misstatements

Viatical Settlement

the sale of a life insurance policy by a terminally ill insured to another party, typically to investors or investor groups, who hope to profit by the insured's early death

What is insurance?

transfer risk

Aleatory

unequal exchange

Which of the following types of insurance policies would perform the function of cash accumulation?

whole life