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40 Cards in this Set

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  • Back
What would happen if the insd. became totally & permanently disabled two months before the cut-off dateon his waiver of premium rider?
The insd. is eligible for all the waiver of premium provisions, even if a disability extends past the normal cut-off date of age 60.
What is the turning over of all rights in a life policy to an assignee?
Absolute assignment
What does an Indeterminate Premium policy offer?
Low starting premiums, usually for a couple of years, and then, change according to the insurer's investments and claims.
Can the death benefits from a variable life poicy increase or decrease?
Yes, but they can never fall below the policy's face amount.
What does a flexible premium annuity provide?
It allows for the buyer to vary the premium payment as long as the amount falls within a certain dollar range.
What is a MET?
A Multiple Employer Trust is a legal entitiy that small employers can join because they have too few employees for a direct group plan.
What is a medical expense plan called that bases payments on medical services or procedures in the same geographic area?
an Unscheduled usual & customary pan. It alows benefits to stay up with inflation and avoids repricing benefits as medical costs increase.
How does a group disability policy differ from an individual disability policy?
The group policy is:
-less expensive
-has more liberal
The only way an insurer can cancel a noncancellable policy is __________________
for nonpayment of premium
To waive an insured's premium, most companies require an individual's disability to be____________
total and permanent
How is the money provided under the automatic premium loan provision handled?
Normally, it is charged interest
What is the collateral for a policy loan?
the cash value of the policy itself
What is the initial enrollment period for Part B of Medicare?
1st day of the 3rd month before the month before the individual attains the age of 65
An insured has the payout option "life annuity with period certain". How would he be paid?
Paid a precise minimum number of years or for the rest of his life, whichever is longer
aka: "annuity certain and for life thereafter"
What is the main benefit of a 501 (c) 9 trust?
it allows contributions to be deducted immediately, instead of when benefits are distributed
What does ADL mean?
activities of daily living
Under the Gram-Leach-Bliley Act, what is the difference between a customer and a consumer?
a customer has a relationship with an insurer, while a consumer does not
With an immediate annuity, the annuity begins when what period of time has elapsed?
Usually, an exact date in the future
Dental insurance usually covers whitening of the teeth. (T/F)
The Spendthrift Clause prevents the beneficiary from ____________ all of the proceeds of the policy
How long is the affiliation period under a Small Employer Group plan?
Not over 90 days for new hires and not over 180 days for enrollees. During this period, no premium is collected and no coverage is provided
Most companies will allow the insd. to change to another tpe of ins policy without a medical exam if the original policy has a conversion privilege and ______?
The new premium is higher than the original policy
What does an aleatory insurance contract mean?
An equal value is not exchanged by both parties to the contract
In 1965 Title XIX was added to the Social Security program. What did it add?
Long term care insurance covers post hospital skilled nursing care. (T/F)
False. This is provided by Medicare Part A, so it is not covered by LTC
Do Medigap policies cover all preexisting conditions immediately?
Medigap policies only cover preexisting conditions if the insured signs up in the first 6 months of eligibility
Can an employer make contributions to a TSA 403B?
No, employers do not contribute to any tax-sheltered annuities.
How does a life annuity, with period certain, pay the annuitant?
It pays until death, at which time the beneficiary begins receiving payments for the rest of his/her life
John and his wife Delia have been buying IRAs for a number of years. In the tax year 2005, the contributions changed. What was their minimum contribution?
There is no minimum limit
A company provides a $5,000 monthly income to retires who have served as senion executives. This type of retirement benefit is not available to other company retires. What would the IRS call this type of retirement plan?
A non-qualified plan
An unbundled life insurance contract has company expenses built into the policy. (T/F)
An unbundled life insurance contract is a universal life policy. The protection, cash value, and loading are separated and reported separately.
What is the intent of the COB Provision?
Coordination of Benefits is designed to eliminate over insurance while giving the insured as much coverage as possible
The grace period on a policy paid weekly is 10 days. (T/F)
False. On weekly collected premiums, the grace period is 7 days.
What is the COB Provision attempting to do?
The Coordination of Benefits is designed to eliminate over insurance while giving the insured as much coverage as possible.
How often does a disable person receiving disability benefits have to show proof of continuing disability?
Once every 6 months
How are dependents defined under the requirements of a contributory small employer group policy?
Persons eligible for coverage are: the spouse, new born children, children under 19, and financially dependent full time stuidents under 23 years of age.
How does the absolute assignment provision differ with life, health, or disability policies?
It doesn't. An assignment of benefits is the same whether it is life, disability, or health benefits
Are paid up additions a nonforfiture option?
No, paid up additions is a participating dividend option.
To forfeit means to lose. With nonforfiture options, you can't lose.
If an insured allows a policy to lapse and the insurance company converts the policy to the extended term option, what feature carries over to the new policy?
the beneficiary
What is the principle in the law of agency?
the insurance company