insurance

BEFORE AN AGENT CAN TRACT BUSINESS IN NEW YORK EVERY INSURER, FRATERNAL BENEFIT SOCIETY OR HMO MUST FILE WITH THE SUPERINTENDENT A

CERTIFICATE OF APPOINTMENT

ALL THE FOLLOWING ARE EXAMPLES OF RISK RETENTION EXCEPT

PREMIUMS

AGENCY CONTRACT

a contract that is held between an insurer and agent producer, containing the expressed authority given to the agent/producer, and the duties and irresponsibility to the principal and agent who is in violation of the agent contract may be held personal liable to the insurer

`WHAT DOCUMENTATION GRANTS EXPRESS AUTHORITY TO AN AGENT

agent's contract with the principal

AN INSURED HAS A $10,000 TERM LIFE POLICY, THE ANNUAL PREMIUM OF $200,000 WAS DUE ON FEBRUARY 1, HOWEVER, THE INSURED FAIL TO PAY THE PREMIUM, HE DIED ON FEBRUARY. HE DIED ON FEBRUARY 28, HOW MUCH WOULD THE BENEFICIARY RECEIVE FROM THE POLICY

$9,800

THE SUPERINTENDENT WILL NOT RENEW AN AGENT OR BROKER'S LICENSE UPON FINDING THAT THE LICENSE HAS BEEN USED TO WRITE CONTROLLED BUSINESS WHICH OF THE FOLLOWING WOULD BE A VIOLATION OF CONTROLLED BUSINESS PRACTICES,

15% OF THE AGENTS ANNUAL COMMISSION IS FROM BUSINESS SOLD TO THE AGENT'S FAMILY

A CLIENT POLICY LAPSED IN 2010 WITHOUT BEING RENEWED IN WHAT YEAR CAN THE INSURANCE COMPANY DESTROY THE FILE ON THIS POLICY

6 years

HOW LONG MUST INSURERS KEEP RECORDS OF CLAIM

6 years

IN NEW YORK STATE'S CONTINUING EDUCATION {CE} REQUIREMENT

consists of completing 15 hours of continuing education each biennium

CONVERTIBILITY

convertibility term policy allows the insured to covert {change} the term policy into a permanent policy at anytime during coverage period without proof of insurability

WHICH AUTHORITY IS NOT STATED IN AN AGENT'S CONTRACT BUT IS REQUIRED FOR THE AGENT TO CONDUCT BUSINESS

implied

WHAT IS A DEFINITION OF A UNILATERAL BUSINESS CONTRACT THE EASIEST WAY TO UNDERSTAND UNILATERAL BUSINESS CONTRACT IS BY ANALYZING THE WORD "UNILATERAL ; IN ITS SIMPLEST TERMS, UNILATERAL CONTRACTS INVOLVE AN ACTION UNDER TAKEN BY ON PERSON OR GROUP ALONE

in contract law unilateral contracts allow only one person to make a promise or agreement

LIFE IN COME JOINT SURVIVOR SETTLEMENT OPTION GUARANTEES

income for 2 more recipients until the die

INSURER PRINCIPAL THE COMPANY WHO ISSUES POLICY OF INSURANCE

insurer is the insurance company

DURING PARTIAL WITHDRAWAL A UNIVERSAL LIFE POLICY, WHICH PORTION BE TAXED

interest

WHICH OF THE FOLLOWING IN NOT TRUE CONCERNING THE PURPOSE OF THE INSURANCE FRAUD PREVENTION ACT

it helps insurers to not sell policies to those applicants who are high risks

WHAT COMPANY PRODUCES EVALUATION OF INSURER FINANCIAL STATUS OFTEN USED BY THE INSURANCE DEPARTMENT

ambest

THE DEATH PROTECTION COMPONENT OF UNIVERAL LIFE INSURANCE IS ALWAYS

annual renawable term

THE RISK MANAGEMENT TECHNIQUE THAT IS USED TO PREVENT A SPECIFIC LOSS BY NOT EXPOSING YOURSELF TO THAT ACTIVITY IS CALLED

avoidance

UNDER WHICH NON FORFEITURE OPTION DOES THE COMPANY PAY THE SURRENDER VALUE AND HAVE NO FURTHER OBLIGATION TO THE POLICY OWNER

cash surrender

REPRESENTATION ARE WRITTEN OR ORAL, STATEMENT MADE BY THE APPLICANT THAT

considered true to the best of the applicant's knowledge

WHICH OF THE FOLLOWING INSURANCE PROVIDERS MUST BE NONPROFIT AND SELL INSURANCE ONLY TO IT MEMBERS

fraternal

WHAT INSURANCE CONCEPT IS ASSOCIATE WITH THE WORD "WEISS AND FITCH"

guides describing company financial integrity

SPENDTHRIFT CLAUSE

if owner chooses either of these 2 to protect beneficiary is= tax advantage

WHICH AUTHORITY IS NOT STATED IN A AGENT'S CONTRACT BUT IS REQUIRED TO CONDUCT BUSINESS

implied

WHEN A REDUCED- PAID UP FORFEITURE OPTION IS CHOSEN WHAT HAPPEN TO THE FACE AMOUNT OF THE POLICY

it reduced to the amount of what the cash value would by as a single premium

A RIDER ATTACHED TO A LIFE INSURANCE POLICY THAT PROVIDE COVERAGE ON THE INSURED'S FAMILY MEMBER IS CALLED THE

other-insurer rider

AN INSURED HAS A CONTINUOUS PREMIUM WHOLE LIFE POLICY, SHE WOULD LIKE TO USE THE POLICY DIVIDENDS TO PAY OFF HER POLICY SOONER THAN WOULD HAVE BEEN POSSIBLE OTHERWISE WHAT DIVIDENDS WHAT DIVIDEND OPTION COULD SHE USE

paid-up option

WHICH OF THE FOLLOWING RIDER WOULD NOT CAUSE THE DEATH BENEFIT TO INCREASE

payer benefit rider

WHICH OF THE FOLLOWING IS AN EXAMPLE OF AN AGENT'S FIDUCIARY RESPONSIBILITIES

promptly forwarding premiums to the insurance company

A SITUATION IN WHICH A PERSON CAN ONLY USE OR HAVE NO CHANGE REPRESENT

pure risk

IF A COURT ORDERED PAYMENT FOR A LOSS THAT WAS NOT COVERED IN THE POLICY EVEN IF WAS CLEARLY WORDED, IT WOULD BE AN EXAMPLE OF WHICH LEGAL CONCEPT

reasonable expectations

STATEMENTS MADE BY AN APPLICANT FOR A LIFE INSURANCE REFERRED TO AS

representation

BECAUSE OF FINANCIAL OBLIGATION JOHN FELT THAT HE NEEDED MORE INSURANCE THAN THE INSURER WAS WILLING TO ISSUE, JOHN'S INSURANCE PRODUCER TOLD HIM THAT HE COULD MAXIMIZE THE DEATH BENEFIT WITHOUT INCREASING THE FACE AMOUNT BY THE USE OF AN

return of premium rider

A POLICY OWNER WHO IS ALSO THE INSURED WANTS TO NAME HER HUSBAND AS THE BENEFICIARY OF HER LIFE POLICY, SHE ALSO WISHES TO RETAIN ALL OF THE RIGHTS IF OWN SHIP. THE POLICY OWNER SHOULD HAVE HER HUSBAND NAMED AS THE

revocable beneficiary capable of being revoked or concealed

EVERY INSURANCE COMPANY IN THE STATE OF NEW YORK MUST FILE ANNUALLY WITH THE OFFICE OF THE SUPERINTENDENT TO SHOW THAT IT IS

solvent

WHICH OF THE FOLLOWING INSURER ARE OWNED BY STOCKHOLDER WHO HAVE THE USUAL RIGHT OF OWNERSHIP, INCLUDING THE RIGHT OF VOTING

stock

THE INTEREST EARNED ON POLICY DIVIDENDS IS

taxable-dividends are a return of unused premiums on which the insured has already paid taxes any interest earned is taxable as ordinary income

ALL OF THE FOLLOWING ARE CAUSE FOR THE INSURANCE SUPERINTENDENT TO SUSPEND OR IMPOSE CONDITION UPON THE CONTINUANCE OF AN AGENT'S LICENSE EXCEPT

the applicant has been shown to be a poor personal credit risk

PERIL IS MOST EASILY DEFINED AS

the cause of loss insured

WHICH OF THE FOLLOWING HAS THE AUTHORITY TO REVOKE A PRODUCERS LICENSES

the department of insurance

WHICH OF THE FOLLOWING ARE GENERALLY NOT CONSIDERED WHEN UNDERWRITING GROUP INSURANCE

the groups medical history

WHICH ENTITY DETERMINES THE AMOUNT OF ACCELERATED DEATH BENEFITS THAT WILL BE PAID TO AN INSURED

the insurer

WHEN AN INDIVIDUAL PURCHASE INSURANCE WHAT RISK MANAGEMENT TECHNIQUE IS HER OR SHE PRACTICING

transfer

THE RIDER IN A WHOLE LIFE POLICY THAT ALLOWS THE COMPANY TO FORGO COLLECTING THE PREMIUM IF THE INSURED IS DISABLED IS CALLED

waiver of premium

INFORMING AN INSURANCE CONTRACT WHEN DOES ACCEPTANCE USUALLY OCCUR

when the insurer approves a prepaid application