Life insurance basics

insurable interest may exist between the policyowner and the insured when the policy is insuring any of the following

1 policyowners own life 2 the life of a family member (a spouse or a close blood relative ) 3 the life of a business partner key employee or someone who has a financial obligation to the policyowner ( for example a debtor has a financials obligation toa creditor so the creditor has a valid insurance interest in life of the debtor )

viator has

15 calendar days to rescind a viatical statement

permanent life insurance

A general term used to refer to various forms of whole life insurance policies that remain in effect to age 100 so long as the premium is paid.

Field underwriter

A life insurance producer is the company's

key employee

An employee whose loss to a firm through death or disability before retirement would have economic effects on the company. (the business ends up being the following; applicant, policyowner, premium payer, and beneficiary )

Buy sell is also called

Business continuation agreement

3 years

Evidence that requires have been maintained should be kept for

Insurance advertising in this state

Insurers must submit 3 copies of all advertisement to the department of insurance for approval. One a mail order solicitation has been filed it may be used for 2 years without additional filing. Advertising material will remain filed for 4 years or until the regular examination of the company whichever is longer. Testimonial refers to benefits received under a contract. The specific claim data should be retained by the insurer for 4 years or until the filing of the next regular examination of that insurer whichever is longer

Participating vs Nonparticipating

Only participating policies distribute dividends to policy owners

30 days

Pa certification of a aforementioned notification must be provided annually ____ of the anniversary of the original certification

Insurers cannot advertise

Protection by the insurance guaranty association

needs approach

The predicted needs of the family using: DIME - Debt - Income - Mortgage - Expenses

5 business days

The replacing insurer must notify the existing insurer of a replacement within ____ following the receipt of the application or on the day the policy is issued whichever is sooner

chronically ill

a condition in which a person is unable to perform at least 2 activities of daily living or that requires substantial supervision to protect the individual from threats to health and safety due to severe cognitive impairment

90 days

all viatical applications will be approved or disapproved by the department within this time frame

viatical settlements

allow someone living with a life-threatening condition to sell their existing life insurance policy and use the proceeds when they are most needed; before their death

viatical settlement purchaser

anyone who gives a sum of money as consideration for a life insurance policy or interest in the death benefits of a life insurance policy

if life expectancy is less than 1 year

contact can not be made more than once per month

3

contact cannot be made more often than every _____ months

3 business days

funds will be sent to the viator , settlement provider acknowledges that the ownership of the policy or interest in the certificate has been transferred and the beneficiary has been designated

human life approach

gives the insured an estimate of what would be lost to the family in the event of the premature death of the insured

the policyowner must have insurable interest in the life of the insured

in the life of the insured

100

licensure as a viatical settlement broker

300

licensure as a viatical settlement provider

terminally ill

means a condition (illness or sickness) that can reasonably be expected to result in death within 24 months

viatical settlement broker

means a licensed person that, for a fee, negotiates viatical settlement contracts between the viator and viatical settlement providers. The viatical settlement broker represents the viator.

viatical settlement provider

means a person other than aviator that enters into a viatical settlement contract

A policy summary

provides specific information about the policy purchased, such as the premium and benefits.(features and elements )

life settlements

refers to any financial transaction in which the owner of a life insurance policy sells a life insurance policy to a third party for some form of compensation, usually cash

viatical brokers

represent the insureds

viatical producers

represent the providers

Underwriting

risk selection and classification process

liquidation

selling assets in order to raise capital

viators

the insured are referred to as this

insurable interest

to purchase insurance , the policyowner must face possibility of losing money or something of value in the event of a loss. to purchase insurance the policyowner must face the possibility of losing money or something of value in the event of a loss. This must exist at the time of the application

Stock purchase

used by privately owned corporations when each stockholder buys a policy on each of the others

Cross purchase

used in partnerships when each partner buys a policy on the other's

Stock Redemption

used when the corporation buys one policy on each shareholder

Entity purchase

used when the partnership buys the policies on the partners

Fixed vs variable insurance

Fixed offers guaranteed minimum or fixed benefits that are stated in the contact variable cash values accumulate based upon a specified portfolio of stocks without guarantees of performance. Paced with inflation

Surrender Comparison Index Disclosure

Provides a life insurance purchaser with a means of making a cost comparison of the same types of life insurance policies having the same premium payment period and pattern

Buyers guide

Provides basic, generic information about life insurance policies that contains, and is limited to, language approved by the Department of Insurance.

Term life

Temporary life insurance provider for a specific period of time. It is also known as pure life insurance

viator

means the owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract

within 20 days

of completing the contract the viatical settlement provider must give written notice to the insurer that issued the insurance policy that the policy has or will become a viaticated policy