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34 Cards in this Set
- Front
- Back
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How will the commission be calculated on replacing long term care policy? |
It will be calculated based on the difference between the annual premium of the replacement policy and the original polciy. |
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Upon receiving information by a cold lead device, what should an agent or broker do to the consumer? |
The agent, or broker must immediately disclose that fact to the consumer. |
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Under Part A of Medicare, who submits the claim? |
The provider must submit the claim. |
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Who and What will Adult day care coverage cover in a Long Term Care policy? |
Adult day care coverage in a Long Term Care policy will cover part time care in a facility for a person who lives at home. |
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Who is a group contract between? |
It is a contract between the insurer and the employer. |
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What is a Keogh plan? |
It's a retirement plan for those who are self employed. |
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What is an Illustration? |
It's a presentation or depiction that includes non-guaranteed elements of a policy of life insurance over a period years. |
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What are "non-guaranteed elements" in a life insurance policy illustration? |
The "non-guaranteed elements" means the premiums, benefits, values, credits or charges under a policy of life insurance that are not guaranteed or not determined at issue. |
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What do stock redemption buy/sell agreements do? |
They facilitate the purchase of a deceased shareholder's shares from the shareholder's heirs by a corporation. |
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At what age can a widow or widower without children would be eligible for Social Security survivors benefits? |
At age 60. |
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If a senior has purchased an annuity which is invested in a mutual fund and they cancel during the free look, what happens? |
The CIC requires they be refunded the value of the account. |
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Medicare will send out a Medicare Summary Notice(previsouly known as the Explanation of Medicare Benefits) each quarter which details the services which were provided under Part A and B,if they were covered and how much they were covered for. |
The medicare Summary Notice is not a bill. Money due will be billed directly by the provider who performed the services. |
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What does every Qualified Long Term Care policy sold in California must state on the first page of the policy? |
"This contract for long term care insurance is to be a federally qualified long-term care insurance contract and may qualify you for federal and state tax benefits" |
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What are the guidelines for the free look notice for seniors? |
It must be printed in no less than 10-point uppercase type, on the cover of the policy or certificate and the outline of the coverage. |
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What can a collateral assignment do? |
It can be utilized to obtain a loan. |
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What happens if a policy loan is outstanding when the insured dies and the beneficiary selected the fixed period settlement option, what will the outstanding loan effect? |
It will effect the amount of payments received, but not for the length they are received for. |
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What is an equity indexed annuity's interest rate? |
It has a fixed minimum interest rate, and the chance to get a higher rate return like that of the stock market. |
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What's the withdrawal penalty for a Modified Endowment Contract? |
It has a 10% IRS early withdrawal penalty. |
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Where does the agent's commission source from? |
It comes from the insurer expenses portion of the premium charged. |
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What were the Life Insurance policy illustration regulations NOT created for? |
They were not created to eliminate disclosure. |
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What does the CIC define Insurance as? |
They define it as a contract whereby one undertakes to indemnify (to compensate for damage loss or sustained) another against loss, damage, or liability arising from a contingent or unknown event. |
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When should an outline of coverage be delivered to a prospective applicant for long term care insurance? |
It should be delivered at the time of initial solicitation(a petition or request). |
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What is a joint life policy? |
It's a policy that covers multiple lives and pays out when the first insured dies. |
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What must Life Agent, Fire& Casualty broker-agents and Personal Line agents must do after the pre-licensing requirement? |
They must complete a 12-hour Ethics and Code course. |
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What's included in the employee's gross income in a non-contributory group disability income policy? |
Any policy benefits paid for would be included in the employee's gross income.
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Who's responsible for the content of a website if an insurance agent hires a website designer? |
The insurance agent is responsible for the content of the website. |
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What is the "exclusion ratio"? |
The exclusion ratio is a formula used to determine the amount of annuity distribution which is taxable. |
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When can the insured change the beneficiary?(One who receives benefits, profits, or advantages.) |
They can change the beneficiary anytime if they are revocable. |
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What is a Coordination of benefits? |
A coordination of benefits is a provision which would prevent a family from collection for the same loss twice in a group plan. |
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When can a representation be altered or withdrawn from? |
The representation can be altered or withdrawn before the insurance is effected, but not afterwards. |
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What do all insurers, brokers, agents, and others engaged in the business of insurance owe a policy holder or a prospective policyholder? |
They all owe a policyholder or a prospective policyholder a duty of honesty, and a duty of good faith and fair dealing. |
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What is not included in the employee's gross income if the premium for a group disability income policy is fully paid for? |
The employee benefits would be excluded from the employee's gross income. |
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What must be present when a life insurance policy is first issued? |
Insurable interest. |
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What is the measure of liability in life insurance? |
The measure of liability is the sum or sums payable as provided in the policy to the person entitled thereto. |
