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9 Cards in this Set
- Front
- Back
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Typoe of clientele not eligable for overhead expense coverage?
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Insurance companies
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Overhead expenses cover the fixed costs of the insured or the business?
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the INSURED
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In overhead expense coverage, what is NOT covered?
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salary of a replacement of owner
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In the event of death?
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3 times maximum MONTHLY benefit
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How to calculate amount of benefit?
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1 - (gross income)(0.75) = net income
2 - (Overhead cost) - (net income) = amount of benefit |
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Criteria for eligibility for buy-out coverage?
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1 - minimum two owners
2 - must present financial statements (2 recent years) 3 - must be profitable |
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What is a shotgun clause?
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Disabled partner is forced to sell OR other partner is forced to purchase
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Can disability insurance be transferred?
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yes if insured is not disabled and owns interest in the business.
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Ratio of reduced coverage?
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60 years old = 100%
61 = 80% 62 = 60% 63 = 40% 64 = 20% |
