Life Insurance Flashcards 5

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Characteristics of group life insurance

- Amount of coverage is determined according to nondiscriminatory rules - Individuals covered under the policy receive a certificate of insurance - Certificate holders may convert coverage to an individual policy without evidence of insurability - Premiums are determined by the age, sex, and occupation of the entire group

The three examples of insurable interest

- Business partners - Employer in employee - Child in parent

Examples of insurance transactions

- Soliciting a policy - Negotiating Coverage - Advising a policyholder regarding a claim

Life Insurance Illustration

A presentation of nonguaranteed elements of a policy

The date of the medical exam

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

Refund the premiums paid

An insured committed suicide 6 months after his life insurance policy was issued. The insurer will...

Before accepting the initial premium

Assuming that a policy does not contain an unconditional refund provision of at least 10 days, when must a Buyer's Guide and policy summary be provided?

3 days

How long within requesting an investigative consumer report must an insurer notify the consumer that the report will be obtained?

3

How many hours of CE must be competed in ethics each licensing period?

The producer must provide the applicant with a Notice Regarding Replacement (NRR)

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

5 years

If a group life plan is terminated, how long must someone have been on the plan in order to convert?

Guaranteed insurability rider

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

The total death benefit minus the overdue premium

If a person dies within the grace period of their annual life insurance payment, how much will their beneficiary receive?

Welfare benefits

Not a benefit under social security

Increasing

ROP has what type of term coverage?

The annuity period

The period of time during which accumulated money is converted into income payments

Deferred

There is no accumulation period in which kind of annuity?

Cash option

When an insurer receives an annual life insurance dividend check, they've chosen this arrangement

Tax deductible

Whenever an employer buys group term life insurance for his employees, this expense is considered

An annuity

Which product provides income for a specified number of years or for life and protects against outliving one's money?

An individual not covered by an employer-sponsored plan who has earned income

Who can make a fully deductible contribution to a traditional IRA


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