3) Life Insurance Premiums and Proceeds
Order by
18 terms
Terms | Definitions |
|---|---|
 Actuarial | department of an insurer that is responsible for analyzing data to develop rates |
| Rate/premium | What does an insured pay the insurer per unit of coverage? |
| monthy | The most expensive premium payment mode would be |
| Annually | If a client was paying a semiannual premium and wanted to discount his premium, he would have to pay premium on |
| not tax deductible | Individual life insurance premiums are |
| True | An employer would be able to deduct its share of group premiums paid as a business expense |
| tax-exempt | Life insurance lump-sum distributions are |
| Lump-sum cash | automatic settlement option |
| the beneficiary may choose | If the policyowner at the time of her death had not chosen a settlement option, then |
| Life income | settlement option guarantees payment for the lifetime of a recipient |
| taxable | the interest that life insurance dividends earn is |
| true | The life income period certain settlement option guarantees payments for a specified number of years or the lifetime of the recipient |
| Mortality table | assists actuaries in determining future claims due to deaths of insureds |
| tax deductible | if an employer paid in full or in part for group life insurance for its employees, the premiums paid would be |
| short rate cancellation | an insured cancels a policy, and the insurer returns the unearned premium less a 15% penalty. this is called |
| loading charge | an insurer covers their expenses by charging a |
| Monthly, Qurterly & Annually | would be a premium payment mode |
| dividend | a divisible surplus of a participating company is known as a |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.