insurance *****
MIB
A nonprofit organization that contains underwriting information on applicants for life and health insurance
health insurance grace period
10 days
penalty for transacting insurace without proper license
1k
penalty for transacting insurance w/o license
1k
commisioner hearing how many days notice
20 days
how many months for LTC in hospital coverage
24
how many hrs education each license period
3
how often complete education how many years
3
3 year period hours of education needed
30
demand to meet with the commissioner
30 days
how long health care free look period
30 days
medicare supplement free look provision how long
30 days
insurance fraud maximum time in prison
4 years
social security elimination period
5 months
minimum credits for social security disability
6 credits
continuous care coverage how many hours education
8
licensing for another state how many days
90
proof of loss time frame for health insurance
90 days
Roth IRA
After tax contributions. Can go past 70 1/2 . Grow tax free as long as it is open at least 5 years.
4 elements of contract
Agreement(offer and acceptance), consideration, competent parties, legal purpose
universal life insurance policy
Annually renewable term policy with a cash value account
insurable interest
Applicant must experience a financial loss due to an accident or sickness that befails the insured
Dividends
Are a return of excess premiums, NOT taxable to the policyowner and are NOT Guaranteed!
decreasing term policy
level premium and a death benefit that decreases each year. usually used to insure mortgage or other debts if the insured dies prematurely. Coverage decreases as loan balance decreases. Death benefit 0 at the end of policy term. Convertible but not renewable.
living benefits of whole life insurance
loan values and retirement income
misrepresentation
making false or misleading statements with the intent to defraud another
group policy to individual policy
must have 5 years
dividend options
paid up additions, accumulated at interest, reduction of premium
indemnity
pays a fixed amount each day a person is in the hospital
accidental death rider
pays a multiple of the face value of the policy if death occurred before 90 days after the accident. If not, it only pays face value
Medicare part b
pays for physician services, diagnostic tests, physical therapy
Entire Contract provision
policy and copy of application
consideration from insured
premium payment, representations on application, submitting statement of good health
contributory plan
premiums are shared between employer and employees. 75 percent of employees must be on plan.
contract of adhesion
prepared by only the insurer, the insureds only option is to accept or reject
person other than viator enters into viatical settlement
provider
coinsurance
provision that provides sharing of expenses between insured and insurance company
2 types of risk
pure and speculative
nonforfeiture covers longest period of time
reduced paid-up
level in level term insurance
refers to face amount
guaranteed renewable disability insurance policy
renewable at the insureds option up to a certain age
insureds right to cancel coverage
renewal provision
mutual insurer
return surplus money to policy holders
underwriting
risk selection and classification
equity indexed innuities
seek higher returns
inspection report
shows info about hobbies and other cool stuff
a nonqualified retirement plan
split-dollar plan
STOLI policy
stranger originated life insurance policies (bought by stranger)
classifications of health
substandard, standard, preferred
personal uses of life insurance
survivor protection, estate creation and conservation, cash accumulation and liquidity
tax imposed by social security
taxable wage base
option B
Increasing death benefit option. Death benefit includes annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases. At any point in time the total death benefit will always be equal to the face amount of the policy plus the current amount of cash value.
individual retirement account (IRA)
Individuals make contributions with pretax dollars until the age of 70 1/2. Allowed specified dollar amount eachyear or 100 percent of salary if less than amount expressed.
Reinstatement
Lapsed policy back in force. Has 3 years after lapse. MUST provide evidence of insurability. Pay back all missed premiums plus interest.
option A
Level death benefit option, death benefit remains level while cash value gradually increases
Incontestibility
Prevents insurer from denying claim due to statements in the application after the policy has been in force for 2 years.
Free look period
Starts when the owner receives the policy
risk in a fixed annuity
the insurer has the risk
elimination period gets shorter
the premium gets higher
insurance
the transfer of risk
disclosure statement
to explain features and benefits of a proposed policy to a consumer
purpose of coinsurance provisions
to help insurance company prevent overutilization of the policy
paid up addition
uses dividend to purchase a smaller amount of the same type of insurance as the original policy
reduction of premium option
using extra dividends to pay next premium
earliest a policy can go into affect
when the policy is signed and a check is given to the agent
metal levels
bronze-60 silver-70 gold-80 platinum-90
irrevocable beneficiaries
can be changed with agreement of that beneficiary
Nonforfeiture options
cash surrender, extended term, reduced paid up
liquid resources in life insurance contract
cash value available to the insured
insurer needs this to transact insurance in a state
certificate of authority
what you need to be an administrator
certificate of registration
variable life insurance
death benefit can increase or decrease, at least minimum stated in policy
annuity that makes payments 2 years later
deferred
broker
do not need to be appointed
noncontributory plan
employer pays all premiums. 1o0 percent of employees on plan.
defamation
false statements about the financial condition of any insurer
insurers should eliminate these from illustrations
footnotes and caveats
primary care physician in an hmo
gatekeeper
payor benefit
if a parent dies or becomes disabled for at least 6 months, the insurer will waive the premium until the minor reaches a certain age, such as 21.
Rider that would NOT increase premium
impairment rider
return of premium life policy
increasing term
return of premium
increasing term insurance policy
403b plan
individual retirement plan for public school teachers
who can legally bind a contract
insurer
insuring clause
insurer agrees to provide life insurance which will be paid to designated beneficiary when proof of loss is received by insurer
optionally renewable policy
insurer can increase premiums
who has the authority to make changes to an insurance policy
insurers executive officer
conditional receipt
intended to provide coverage on a date earlier then the date of the issuance of the policy
why is an equity indexed annuity considered to be a fixed annuity
it has a guaranteed minimum interest rate
OBRA
law passed to authorize the NAIC to develop a standardized model for medicare supplements
fiduciary capacity
agent handling premium funds while conducting business
guaranteed insurability rider
always insurable (usually every 3 years)
gross annual premium
annual cost of mortality plus expenses
what percent of individualy owned disability income benefits is taxable
0 percent
POS Point of Service Plan
Combination of HMO and PPO plans.
COBRA
Group coverage must be extended for terminated employees up to a certain period of time at the former employee's expense
Nonforfeiture
Guarantees. Cant be forfeited.
Return of premium rider
Using increased term insurance. If whole life, return of premiums paid can also be paid to the beneficiary.
Residual disability
Will pay an amount to make up the difference between what the insured would have earned before the loss.
SEP
a benefit plan that is designed to be provided by a small employer for the benefit of the employees