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20 Cards in this Set
- Front
- Back
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Life Insurance is used to protect against |
the risk of the insured's dying while he/she has unsatisfied financial obligations. |
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Life Insurance may be used to provide |
the insured's family with an income after the insured has died. |
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Life Insurance may be used to fun final expenses likely to occur at death such as |
estate taxes, inheritance taxes, accrued income and property taxes, funeral expenses and last illness expenses. |
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Common use for life insurance benefits are |
protect the family against loss of income at death, pay funeral and burial expenses, pay estate taxes and legal expenses at death. |
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A life insurance policy owner must be in a position of |
insurable interest in the insured's life both at the time the policy is purchased. |
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An inspection report is always done by |
an outside company
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Inspection reports are |
on part of each producer's applications. |
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Inspection reports are done to verify that the producer |
completed the application accurately and completely |
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the inspection report is done to determine if the applicant |
has any moral or character risks. |
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What federal laws pertains to inspection reports? |
The Fair Credit Reporting Act |
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The amount of life insurance being applied for is great enough, the underwriter may require |
a paramedical examination as part of the application. |
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Life Insurance conditional receipt coverage is put into effect by conditional receipt is of exactly the same form and amount as that provided by the policy |
which ultimately will replace the conditional receipt. |
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In order for a policy to take effect these requirements must be met |
An initial premium must be paid, if the premium is NOT paid at the time of the application the insured must still be in an insurable condition at the time that the policy is delivered & the initial premium is paid, & either a policy or a receipt must be issued to the insured. |
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In rating of life insurance polices the mortality reserve is the amount set |
aside to pay life insurance claims |
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In rating of life insurance polices the nonforfeiture reserve is the amount set |
aside to pay the policy owner nornforfeiture values should the policy owner surrender or lapse the policy. |
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In rating of life insurance polices the interest that the insurance company earns on cash values |
helps to keep the premium rate lower in the later years of the policy |
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In rating of life insurance policy the interest |
is a factor in calculating premium rates. |
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Life insurance underwriting factors are |
Age, sex of applicant, occupation & hobbies of applicant, and medical history of applicant. |
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In a Whole (straight) life insurance policy the insurance company assumes that it will |
earn interest on the cash values which is applied to the cost of the pure insurance protection. |
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What do Whole (straight) life, limited pay whole life, modified whole life and adjustable life insurance policies have in common? |
All four mature at age 100, & all have cash value, |
