Ohio Life, Accident & Health Insurance Exam (Series 11-35), Life Insurance Basics

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

A business is the owner and beneficiary of a key-person life policy. When the business collects the policy benefit, how is it taxed?

The benefit is received tax free

Who is the beneficiary on a key-person life insurance policy?

The employer

If an applicant for a life insurance policy and the potential insured are two different people, what would be the underwriter's main concern?

The existence of insurable interest

Who is responsible for the contents of insurance advertisements?

The insurance company

When planning for survivor protection in life insurance, what needs to be considered?

The insured's current assets, liabilities, and survivor's needs

In calculating the amount of life insurance needed, what is the needs approach based on?

The predicted needs of the family after the premature death of the insured

What is insurance underwriting?

The process of risk selection and classification

What is the purpose of key person insurance?

To minimize the risk of financial loss caused by the death of a key employee

What is the purpose of insurance guaranty association?

To protect policy owners, insureds, and beneficiaries from financial losses caused by insolvent insurers

What is the purpose of the agent's report during the application process?

Agent's personal observations about the proposed insured which may help during the underwriting process

Who must be a member of insurance guaranty associations?

All insurers authorized to write insurance within the state

When must insurable interest exist in a life insurance policy?

At the time of application

When must the policy summary for a life insurance policy be delivered to the policy owner?

At the time of policy delivery

What does liquidity mean in a life insurance policy?

Availability of cash value

If an insured changes his payment plan from monthly to annually, what happens to the total premium?

Decrease

At what point does coverage begin when an agent issues a conditional receipt for a life insurance policy?

Either on the date of the application or the date of the medical exam, whichever occurs last

Life insurance may be used to pay state inheritance taxes and federal estate taxes eliminating the need to sell assets from the estate. What is this called?

Estate conservation

How does the premium mode affect the total premium paid for insurance for the year?

Higher frequency of payments will result in higher overall premium

What type of report provides information about an applicant's hobbies, habits, and financial status?

Investigative consumer report

Mortality tables are used by insurance companies to predict what?

Life expectancy and death rates for specific groups of individuals

What type of insurance creates an immediate estate

Life insurance

What is included in Part 2 of a life insurance application?

Medical information about the prospective insured

All other factors being equal, which premium payment mode would require a higher overall premium: monthly or annual?

Monthly

What are the three factors that determine the premium for a particular life insurance policy?

Mortality, interest, expense

Can insurers advertise the existence of the guaranty association during solicitation and sale of insurance policies?

No, advertising the existence of the guaranty association for the purposes of solicitation and sale of insurance policies by the insurer is an illegal business practice

What are the three main instances when insurable interest exists in life insurance?

Own life, life of a family member, life of business partners, or someone who has a financial obligation to Policyowner

What type of life insurance offers an applicant a cash value element

Permanent

What document describes the specific information about a policy?

Policy summary

Who must have insurable interest in the insured?

Policyowner

What term describes the fee a person pays an insurance company to receive coverage?

Premium

What is the term that describes the frequency and amount of the premium payment

Premium mode

What are illustrations in a life insurance policy?

Presentations of non guaranteed elements in the policy

What is the main responsibility of a company's underwriting unit?

Risk selection

What are the personal uses of life insurance?

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


Set pelajaran terkait

aPHR Study Guide - Functional Area 2: Recruitment and Selection

View Set

Pharmacology Unit 2: Repiratory System

View Set

course point musculoskeletal ch 39

View Set

Ch. 40 Fluid, Electrolyte, and Acid-Base Balance

View Set