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72 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What are a few examples of Riders? |
Waiver of Premium Waiver of monthly deduction Payor coverage Long term care Accelerated Death Benefit Disability Income Accidental Death Cost of Livingwh |
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Which Rider waives premiums while insured is disabled, for WL and Term Life? |
Waiver of Premium (WPD) |
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Which Rider waives premiums while insured is disabled, for UL? |
Waiver of Monthly Deduction |
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What Rider pays a (% of facevalue) a monthly benefit while insured is disabled? |
Disability Income |
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What is the typical waiting period for Disability Income, Waiver of Deduction, and Waiver of Premium?what Rider |
3-6 months |
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What Rider pays an additional DB if insured dies by accident? |
Accidental Death (AD) |
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What Rider provides an additional benefit if the Insured dies by accident or dismemberment? |
Accidental Death and Dismemberment |
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What Rider waives policy premiums for juvenile’s policies if the policyholder becomes disabled or dies before the juvenile is 21? |
Payor Rider |
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What Rider returns part of premium if insured outlives policy? |
Return of Premium |
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Which Rider increases face amount of Policy in conjunction with Consumer Price Index? What is the advantage of this type of coverage? |
Cost of Living Rider (COLA) To combat to inflation |
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What Rider allows insurance to be purchased without EoI at specified ages/ after qualifying event? |
Guaranteed Insurability Rider |
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What Rides keeps a policy through end of term, even if the face value dips below $0? |
No Lapse Gaurantee Rider |
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What policy features allow policy holders to benefit from policy while insured is alive? |
Living Benefits |
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What are the benefits of Living Benefits? |
Loans without qualification Low interest rates Loan payments not necessary |
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What is the term for when you take out a loan against your life Policy? |
Collateral Assignment |
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What rider allows insured to use policy before death, usually in the conditions of terminal or critical illness?which Rider |
Living Need Rider/ Accelerated Death Benefit |
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Which Rider is similar to a Living Needs Rider but specifies benefits taken out before death to cover long term care? |
Long Term Care Rider |
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Who all has to sign a Life Policy? |
Applicant, Policy Owner, Insured, and Agent |
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What happens if an applicant messes up on an application? |
Have them initial correction |
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What is the term for life insurance policies that may not undergo medical examination? |
Non-Medical Application |
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What are the benefits of Guaranteed Issue NMA Insurance? Detriments? |
Pros- No medical history questions
Cons- Small face amount, usually WL policy Expensive premiums |
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What are the benefits and detriments of Simplified Issue NMA Policies? |
Pros- No medical exam (but questions still asked) Larger face amount
Cons- Can be more expensive Insurer may require exam |
Can be more expensive
Insurer may require exam |
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What provision states that a copy of the entire policy must be included in the contract? |
Entire Contract Provision |
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When is the Life Insurance Receipt given to the applicant? Why is it given? |
When the first premium is payed Covers the applicant while underwriting is taking place |
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What is the different terms of binding in a Life Insurance Reciept? |
Binding Receipt- Provides coverage while underwriting even if declined Conditional Receipt- Provides coverage while underwriting only if accepted |
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What is the difference between a Binder and a Temp Insurance Agreement? |
Binders= P&C |
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When people talk about the ISO they’re talking about ________, the office that develops standardized policy forms. |
Insurance Services Office |
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Are there and standardized life policie? |
No each insurer creates their own |
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What is the term referring to the frequency of premium payments? |
Mode |
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What types of modes are there? In order of least expensive to most. |
Annual Mode Semi-Annual Mode Quarterly Mode Monthly Mode |
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Owners of life insurance policy can _________ (transfer legality) it to a new owner. |
Assign |
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What is the order of beneficiaries on a Life Policy? |
Primary Beneficiary Contingent Beneficiary Tertiary Beneficiary |
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What can be a beneficiary? |
Individuals, groups, charities, businesses, trusts, etc |
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Is “children of insured” a correct way to to name beneficiary? |
Yes |
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What happens if one of the beneficiaries per stirpes of a Life Policy dies before the insured? |
Beneficiaries children get money |
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Irrevocable Beneficiaries have a say in tidings if the policy. |
Yes |
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What needs to be signed if the beneficiary is not the spouse? |
Non-Spousal Beneficiary Form |
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What is the Survivorship Claus? |
Beneficiary has to survive insured by at least 30 days to be paid |
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What does the Spendthrift Claus prevent? |
Creditors coming for benefits before beneficiary gets them |
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What are the settlement options for a Life Policy? |
Lump Sum Life Income Interest Only |
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Do you need the insurers permission to assign your policy to someone else? |
No, but a form needs to be filed out letting them know |
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What can the policyowner change about the possibly freely? |
Ownership, Beneficiary, Payment Mode |
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What are some other financial rights if a Policyowner? |
Cash Surrender Policy Loan Set/Change/Withdraw Dividends |
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What are some acceptable delivery methods required for delivery of thepolicy? |
Registered/Certified Mail Signed Mail Receipt Personal Delivery |
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The ____ Period is the Right to Cancel Period. |
Free Look |
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The _____ Clays and the ____ Clays need to be included in the policy. |
Insuring; Consideration |
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What needs to appear on the cover page of a policy? |
The Free Look Claus |
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What is the range of time a person under 60 can have for a “Right To Cancel” period? |
10-30 days |
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What is the range of time a person over 60 can have for a “Right To Cancel” period? |
30+ days |
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_____ is when you miss a premium and the grace period is over and a policy loan in the amount of the premium is automatically taken from the face value. |
Automatic Premium Loan Provision |
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What is the provision that lists the requirements for reinstatement after policy lapse? |
Reinstatement Provision |
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Is reinstatement guaranteed? |
No |
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The ________ Claus is where the insurer waives right to contest contract after 2 years. |
Incontestability |
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The _____ Claus dictates that if an insured commits suicide within 2 years of policy opening, policy is void, but premiums are refunded. |
Suicide Claus |
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What is the provision that refers to an insurer’s right to adjust coverage if they discover misstatements of age or sex? |
Misstatement of Age and Sex Provision |
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When premium payments stop being payed by the Policyowner of a WL Policy, the cash value is made available to them using what options? |
Nonforfeiture Options |
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What are the 3 types of Nonforfeiture Options? |
Reduced Paid-Up Extended Term |
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What does the Reduced Paid-Up option provide to the insured? |
Cash Value used as single premium- face amount reduced to cash value |
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What does the Extended Term option provide to the insured? |
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_____ is when you miss a premium and the grace period is over and a policy loan in the amount of the premium is automatically taken from the face value. |
Automatic Premium Loan Provision |
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What are some dividend option? (OCRAP) |
One-Year Term Policy (additional DB for 1 yr) Cash Reduced Premium Accumulation at Interest (insurer holds and you make interest) Paid-Up Additions (purchases WL insurance on top of Policy) |
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What does the War exclusion exclude? |
Benefits due to war death |
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What does aviation excision exclude? |
Insured dies in non-commercial aircraft |
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What is the provision that lists the requirements for reinstatement after policy lapse? |
Reinstatement Provision |
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Is reinstatement guaranteed? |
No |
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The ________ Claus is where the insurer waives right to contest contract after 2 years. |
Incontestability |
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The _____ Claus dictates that if an insured commits suicide within 2 years of policy opening, policy is void, but premiums are refunded. |
Suicide Claus |
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What is the provision that refers to an insurer’s right to adjust coverage if they discover misstatements of age or sex? |
Misstatement of Age and Sex Provision |
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When premium payments stop being payed by the Policyowner of a WL Policy, the cash value is made available to them using what options? |
Nonforfeiture Options |
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What are the 3 types of Nonforfeiture Options? |
Reduced Paid-Up Extended Term Cash Surrender |
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What does the Reduced Paid-Up option provide to the insured? |
Cash Value used as single premium- face amount reduced to cash value |
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What does the Extended Term option provide to the insured? |
Cash Value used as single premium- insured under Term Policy (based on CV) |
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