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72 Cards in this Set

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  • Back
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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

Which Rider waives premiums while insured is disabled, for WL and Term Life?

Waiver of Premium (WPD)

Which Rider waives premiums while insured is disabled, for UL?

Waiver of Monthly Deduction

What Rider pays a (% of facevalue) a monthly benefit while insured is disabled?

Disability Income

What is the typical waiting period for Disability Income, Waiver of Deduction, and Waiver of Premium?what Rider

3-6 months

What Rider pays an additional DB if insured dies by accident?

Accidental Death (AD)

What Rider provides an additional benefit if the Insured dies by accident or dismemberment?

Accidental Death and Dismemberment

What Rider waives policy premiums for juvenile’s policies if the policyholder becomes disabled or dies before the juvenile is 21?

Payor Rider

What Rider returns part of premium if insured outlives policy?

Return of Premium

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

What Rider allows insurance to be purchased without EoI at specified ages/ after qualifying event?

Guaranteed Insurability Rider

What Rides keeps a policy through end of term, even if the face value dips below $0?

No Lapse Gaurantee Rider

What policy features allow policy holders to benefit from policy while insured is alive?

Living Benefits

What are the benefits of Living Benefits?

Loans without qualification


Low interest rates


Loan payments not necessary

What is the term for when you take out a loan against your life Policy?

Collateral Assignment

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

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

Who all has to sign a Life Policy?

Applicant, Policy Owner, Insured, and Agent

What happens if an applicant messes up on an application?

Have them initial correction

What is the term for life insurance policies that may not undergo medical examination?

Non-Medical Application

What are the benefits of Guaranteed Issue NMA Insurance? Detriments?

Pros-


No medical history questions



Cons-


Small face amount, usually WL policy


Expensive premiums

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

What provision states that a copy of the entire policy must be included in the contract?

Entire Contract Provision

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

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

What is the difference between a Binder and a Temp Insurance Agreement?

Binders= P&C

When people talk about the ISO they’re talking about ________, the office that develops standardized policy forms.

Insurance Services Office

Are there and standardized life policie?

No each insurer creates their own

What is the term referring to the frequency of premium payments?

Mode

What types of modes are there? In order of least expensive to most.

Annual Mode


Semi-Annual Mode


Quarterly Mode


Monthly Mode

Owners of life insurance policy can _________ (transfer legality) it to a new owner.

Assign

What is the order of beneficiaries on a Life Policy?

Primary Beneficiary


Contingent Beneficiary


Tertiary Beneficiary

What can be a beneficiary?

Individuals, groups, charities, businesses, trusts, etc

Is “children of insured” a correct way to to name beneficiary?

Yes

What happens if one of the beneficiaries per stirpes of a Life Policy dies before the insured?

Beneficiaries children get money

Irrevocable Beneficiaries have a say in tidings if the policy.

Yes

What needs to be signed if the beneficiary is not the spouse?

Non-Spousal Beneficiary Form

What is the Survivorship Claus?

Beneficiary has to survive insured by at least 30 days to be paid

What does the Spendthrift Claus prevent?

Creditors coming for benefits before beneficiary gets them

What are the settlement options for a Life Policy?

Lump Sum


Life Income


Interest Only

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

What can the policyowner change about the possibly freely?

Ownership, Beneficiary, Payment Mode

What are some other financial rights if a Policyowner?

Cash Surrender


Policy Loan


Set/Change/Withdraw Dividends

What are some acceptable delivery methods required for delivery of thepolicy?

Registered/Certified Mail


Signed Mail Receipt


Personal Delivery

The ____ Period is the Right to Cancel Period.

Free Look

The _____ Clays and the ____ Clays need to be included in the policy.

Insuring; Consideration

What needs to appear on the cover page of a policy?

The Free Look Claus

What is the range of time a person under 60 can have for a “Right To Cancel” period?

10-30 days

What is the range of time a person over 60 can have for a “Right To Cancel” period?

30+ days

_____ 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

What is the provision that lists the requirements for reinstatement after policy lapse?

Reinstatement Provision

Is reinstatement guaranteed?

No

The ________ Claus is where the insurer waives right to contest contract after 2 years.

Incontestability

The _____ Claus dictates that if an insured commits suicide within 2 years of policy opening, policy is void, but premiums are refunded.

Suicide Claus

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

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

What are the 3 types of Nonforfeiture Options?

Reduced Paid-Up


Extended Term

What does the Reduced Paid-Up option provide to the insured?

Cash Value used as single premium- face amount reduced to cash value

What does the Extended Term option provide to the insured?

_____ 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

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)

What does the War exclusion exclude?

Benefits due to war death

What does aviation excision exclude?

Insured dies in non-commercial aircraft

What is the provision that lists the requirements for reinstatement after policy lapse?

Reinstatement Provision

Is reinstatement guaranteed?

No

The ________ Claus is where the insurer waives right to contest contract after 2 years.

Incontestability

The _____ Claus dictates that if an insured commits suicide within 2 years of policy opening, policy is void, but premiums are refunded.

Suicide Claus

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

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

What are the 3 types of Nonforfeiture Options?

Reduced Paid-Up


Extended Term


Cash Surrender

What does the Reduced Paid-Up option provide to the insured?

Cash Value used as single premium- face amount reduced to cash value

What does the Extended Term option provide to the insured?

Cash Value used as single premium- insured under Term Policy (based on CV)