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18 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Life Insurance |
Creates an immediate estate at death |
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2 primary factors insurers use to determine insurable interest |
1. Relationship to each other
2. Policy owner will suffer a financial loss upon death of the insured |
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Cash Value |
Money available to the policy owner in the form of a loan |
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Needs Approach |
Based on the loss the family would incur if the insured person were to pass away today. Immediate needs |
Future needs |
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How life insurance premiums are determined |
Mortality Investment Return Expenses |
M.I.E. |
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Buyers Guide |
A publication given at the time of application that provides information to consumers. |
Developed by the NAIC (National Association of Insurance Commissioners) |
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Fair Credit Reporting Act (FCRA) |
States the insurers must notify applicants that an investigation may take place and then obtain consent from the applicant at the time of application |
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Disclosure Authorization Form |
Applicant has the right to obtain information and the names of the companies reporting information in regards to denied coverage. |
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Unfair Discrimination |
Denying an individual coverage because of class, sex, race, religion, national origin, ethnic background, marital status. or sexual orientation |
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The Application |
Primary source of underwriting information |
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Corrections on an application |
Only requires the initials of the applicant |
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Backdating |
Dating any document by a date earlier than the one on which the document was originally drawn up. |
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Conditional Receipt |
Just because an app and premium were collected doesn't mean the applicant is insured. Coverage starts on the day the insurer accepts the risk |
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Underwriting criteria used to determine if an applicant is insurable |
Sex Occupation Age Physical Condition Health History (Family health also) Avocation (Hobbies) Moral Hazard (Illegal activities, etc.) |
SOAPHAM |
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MIB (Medical Information Bureau) |
Main purpose is to detect any concealment or misrepresentations by an applicant regarding a health problem |
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Legal age to purchase life insurance |
14 years and 6 months (14.5) |
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Human Life Value Approach |
Looks at loss of income or wages for the future if you died today |
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Life Insurance Replacement (Regulation 60) |
Prevents illegal replacement |
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