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Study sets matching "life insurance 2"

158 terms
Part 2: Life Insurance Basics
Insurable Interest
True or False... In life insurance, insur…
True or False... Once a life insurance po…
A valid insurable interest may exist b…
To purchase insurance, the policy owner must face the possibi…
True
True
1. Policy owner's own life... 2. The life of a family member - a…
Insurable Interest
To purchase insurance, the policy owner must face the possibi…
True or False... In life insurance, insur…
True
34 terms
Life Insurance Test 2
Unbundled
Flexible Premium
Adjustable death benefit
Death Benefit Option A - Level death b…
policy cash value and pure insurance protection costs are sho…
-the policyowner is permitted to select whatever premium he/s…
-permits the policyowner to raise or lower death benefirt... -in…
the death benefit increases during the later years of the pol…
Unbundled
policy cash value and pure insurance protection costs are sho…
Flexible Premium
-the policyowner is permitted to select whatever premium he/s…
89 terms
Chapter 2 - Life Insurance
Applicant
Application
Beneficiary
Insurable Interest
A person making application for himself/herself or another to…
A written formal request by an applicant to an insurer reques…
One or more "parties" named in the policy to receive the poli…
The relationship that must exist between the applicant and in…
Applicant
A person making application for himself/herself or another to…
Application
A written formal request by an applicant to an insurer reques…
46 terms
Life Insurance Exam 2
Which of the following would an agent…
It is a federal offense for an insuran…
How often must an insurer file the nat…
When are parties to a contract require…
A misdemeanor
Misrepresent facts on an insurance application
Annually
Never
Which of the following would an agent…
A misdemeanor
It is a federal offense for an insuran…
Misrepresent facts on an insurance application
19 terms
Life insurance basics #2
Black out period
who is the underwriting department?
how does an insurance company avoid di…
hazard
the period of time between when the youngest child turns age…
The department within an insurer that is concerned with the a…
Ensure the same rates for individuals the present essentially…
increases the risk
Black out period
the period of time between when the youngest child turns age…
who is the underwriting department?
The department within an insurer that is concerned with the a…
101 terms
life insurance
term life insurance
level term life insurance
increasing term policy
face value
temporary protection that lasts only for a specified period o…
premiums remain the same thoughout the life of the policy
level premium, as do all policies, but the face amount increa…
death benefit
term life insurance
temporary protection that lasts only for a specified period o…
level term life insurance
premiums remain the same thoughout the life of the policy
Life Insurance Part 2
Lump Sum Settlement Option
Interest Only Settlement Option
Fixed Period Settlement Option (period…
Fixed Amount Settlement Option
Death benefit is paid in a single payment
Insurance company holds death benefit for a period of time an…
The fixed period option is when the insurer pays proceeds (in…
The fixed amount installment option pays a fixed death benefi…
Lump Sum Settlement Option
Death benefit is paid in a single payment
Interest Only Settlement Option
Insurance company holds death benefit for a period of time an…
18 terms
life insurance test 2
What is Term Life Insurance?
When is Term Insurance Indicated?
Life Insurance Advantages
Key Term Policy Provisions
Death benefit if insured dies during term period... Policy expir…
Maximum death benefit at minimum premium... Initial term premium…
Face amount paid immediately at death... Death benefit is income…
-Guaranteed maximum and current premiums... Renewable... -Re-entry…
What is Term Life Insurance?
Death benefit if insured dies during term period... Policy expir…
When is Term Insurance Indicated?
Maximum death benefit at minimum premium... Initial term premium…
13 terms
Section 2- Life Insurance
Law Of Large Numbers
Risk
Peril
Speculative Risk
larger groups provide an increased degree of accuracy in loss…
potential for loss
something that can cause a financial loss such as an earthqua…
a risk that presents the chance for both loss and gain. Not i…
Law Of Large Numbers
larger groups provide an increased degree of accuracy in loss…
Risk
potential for loss
21 terms
Life Insurance -- QUIZ 2
Health Maintenance Organization
Preferred Provider Organization
How is healthcare financed?
why are so many people uninsured in th…
contract with physcians, hospitals and others to provide serv…
more flexible plan, in which beneficiary can pick their own d…
tax revenue... social insurance model... private insurance system…
costly.... lack of awarness of coverage that is available.... confu…
Health Maintenance Organization
contract with physcians, hospitals and others to provide serv…
Preferred Provider Organization
more flexible plan, in which beneficiary can pick their own d…
33 terms
Life Insurance Chapter 2
Risk
Pure Risk
Speculative Risk
Speculative risk
the uncertainty or chance of a loss occurring.
refers to situations that can only result in a loss or no cha…
involves the opportunity for either loss or gain.
the type of risk that is not insurable
Risk
the uncertainty or chance of a loss occurring.
Pure Risk
refers to situations that can only result in a loss or no cha…
57 terms
Life Insurance Exam 2
Health Maintenance Organizations
Preferred Provider Organizations
Healthcare financing in the US is typi…
Reasons for High Numbers of Uninsured…
Healthcare financing and delivery corporations that contract…
Healthcare intermediaries between sponsors (e.g., employers)…
General tax revenue... Under a social insurance model... Through a…
Costs... Lack of awareness of coverage that is available... Confusi…
Health Maintenance Organizations
Healthcare financing and delivery corporations that contract…
Preferred Provider Organizations
Healthcare intermediaries between sponsors (e.g., employers)…
21 terms
Life Insurance Ch. 2
term insurance
level term
annually renewable term
decreasing term
temporary protection; also known as pure life insurance; prov…
most common type of insurance purchased; refers to the death…
purest form of term insurance; death benefit remains level bu…
feature a level premium and death benefit that decreases each…
term insurance
temporary protection; also known as pure life insurance; prov…
level term
most common type of insurance purchased; refers to the death…
20 terms
Life Insurance Cards 2
Simple 401k
30 Hours
Nonoccupational Disability Income Policy
Rider
A retirement plan with under 100 members, a 25% penalty if wi…
The amount of continuing education hours a producer needs to…
Policy that will only pay a claim when the disability occurs…
Endorsement to an insurance contract that modifies clauses an…
Simple 401k
A retirement plan with under 100 members, a 25% penalty if wi…
30 Hours
The amount of continuing education hours a producer needs to…
50 terms
Life Insurance 2
The insurance policy is
Life insurance agents are not required…
The interest settlement option will al…
When an applicant reveals medical cond…
the written instrument in which the insurance contract is set…
keep records of printed material in general use that has been…
only the death benefit earnings to be paid to the beneficiary.
usually require an attending physician's report.
The insurance policy is
the written instrument in which the insurance contract is set…
Life insurance agents are not required…
keep records of printed material in general use that has been…
8 terms
2. Life Insurance
annually
beneficiary
benefit
face value
once a year
survivor to whom the benefits are paid upon the death of an i…
amount paid to a survivor upon the death of an insured person
amount of a policy stated on the insurance policy
annually
once a year
beneficiary
survivor to whom the benefits are paid upon the death of an i…
69 terms
Life Insurance 2
Cash Surrender Value:
Cash-Surrender-Value: Adjustments: 1)…
Extended-Term Insurance:
Paid-Up Insurance:
Cash Surrender Value: amount of money an insured could receiv…
Cash-Surrender-Value: Adjustments: 1) Unearned Premium may be…
Extended-Term Insurance: uses value to provide TERM Ins. for…
Paid Up Insurance: uses value to provide the largest possible…
Cash Surrender Value:
Cash Surrender Value: amount of money an insured could receiv…
Cash-Surrender-Value: Adjustments: 1)…
Cash-Surrender-Value: Adjustments: 1) Unearned Premium may be…
15 terms
Life Insurance (part 2)
True or False? The annuity "puzzle" re…
Two individuals, a male and a female,…
True or False? Variable annuities are…
Which of the following elements of you…
False
The benefit received by the male will be greater than the ben…
False
Financial capital (NOT: contstant consumption, human capital,…
True or False? The annuity "puzzle" re…
False
Two individuals, a male and a female,…
The benefit received by the male will be greater than the ben…
114 terms
Life insurance 2
A five year old life insurance policy…
The insurance company may not be a can…
All of the following are true about no…
The provisions of the national do not…
The insured seizes to pay premiums
Gender
The amount of coverage is selected by the participant
Established business relationships
A five year old life insurance policy…
The insured seizes to pay premiums
The insurance company may not be a can…
Gender
34 terms
Types of Life Insurance 2
What are the three types of Term life…
What element of Term policies protects…
Describe Annual Renewable Term (ART).
Describe Increasing Term life insurance.
Level, Increasing, Decreasing
Term policies protect insurability because they are Renewable…
A one-year term policy that is renewable without evidence of…
Usually sold as a rider, the face amount increases over time.
What are the three types of Term life…
Level, Increasing, Decreasing
What element of Term policies protects…
Term policies protect insurability because they are Renewable…
42 terms
Life Insurance 1-2
A group contract is between
Conservation is when you, as a producer,
A producer who convince a client not t…
A client has a 10 year certain annuity…
the insurer and the employer
convince a client not to replace a policy
conservation
continue for the next 60 months (5 years)
A group contract is between
the insurer and the employer
Conservation is when you, as a producer,
convince a client not to replace a policy
Life insurance test 2
All of the following are true statmemt…
The policy owner age 50 has been payin…
An insured bought 150,000 non particip…
In insurance terms a representation ca…
Annuity death benefit proceeds exemt from all taxation
Use the policy loan provision to borrow money from the policy…
$150,000
An implied warranty
All of the following are true statmemt…
Annuity death benefit proceeds exemt from all taxation
The policy owner age 50 has been payin…
Use the policy loan provision to borrow money from the policy…
13 terms
Life Insurance 2
Waiver of premium
Guaranteed insurability
Payor rider benefit
Riders
Waives premium at disability if insured becomes disabled with…
Guarantees insurability. Premium based on age. Assures you ca…
Juvenile insurance. Waives premium if the payor (owner) becom…
Added benefits for a small additional premium. Riders will dr…
Waiver of premium
Waives premium at disability if insured becomes disabled with…
Guaranteed insurability
Guarantees insurability. Premium based on age. Assures you ca…
38 terms
Life Insurance Basics (2)
The employer
Life Insurance
Life expectancy and the death rates fo…
Permanent Life Insurance
The beneficiary on a key-person life insurance policy is _
The type of insurance that would perform the function of cash…
Mortality tables are used by insurance companies to predict __.
Provides lifetime protection against premature death
The employer
The beneficiary on a key-person life insurance policy is _
Life Insurance
The type of insurance that would perform the function of cash…
37 terms
Life Insurance CA 2
if a person was in violation of sectio…
if no other method of payment is selec…
the process whereby a mutual insurer b…
Any situation that presents the possib…
issue a cease and desist order for a violation of more than o…
Lump-sum settlement in cash
demutualization
risk potential
if a person was in violation of sectio…
issue a cease and desist order for a violation of more than o…
if no other method of payment is selec…
Lump-sum settlement in cash
13 terms
Life Insurance: Life Insurance
Categories of Life Insurance
Traditional forms of ordinary insurance
Term
Whole life insurance
Ordinary life, industrial, and group life.
Whole life (permanent), term (temporary), and endowment (perm…
Produces the most protection with the least amount of money.
A form of ordinary life insurance that provides coverage unti…
Categories of Life Insurance
Ordinary life, industrial, and group life.
Traditional forms of ordinary insurance
Whole life (permanent), term (temporary), and endowment (perm…
32 terms
Life Insurance Pre-Licensing - 2. Insurance Providers
Stock Insurance Company
Mutual Insurance Company
Participating Policies
Demutualization
A commercial insurance company that is owned by stockholders,…
A commercial insurance company that is owned by its policy ow…
Policies from mutual insurance companies that pay policy divi…
The process by which a mutual commercial insurance company co…
Stock Insurance Company
A commercial insurance company that is owned by stockholders,…
Mutual Insurance Company
A commercial insurance company that is owned by its policy ow…
56 terms
Insurance Life & Health terms 2
Applicant
Non Participating policies
Participating policies
Cash value
A person making application for him/herself or another to be…
Insurance policies which do not pay dividends to policy holde…
Policies that have the ability to pay annual dividends to pol…
Money accumelated in a permanent policy which the policyowner…
Applicant
A person making application for him/herself or another to be…
Non Participating policies
Insurance policies which do not pay dividends to policy holde…
33 terms
Life Insurance Test 2
When is Whole Life best?
Cash Value (CV)
Policy Loan
Dividends
• Long term needs (funeral, probate expenses, estate tax)... • L…
• Tax deferred... • Not subject to market risk... • Surrender charg…
• Policy loan is guaranteed and not subject to credit score... •…
• Reflect difference between projected and current Investment…
When is Whole Life best?
• Long term needs (funeral, probate expenses, estate tax)... • L…
Cash Value (CV)
• Tax deferred... • Not subject to market risk... • Surrender charg…
63 terms
Life insurance pt 2
No
Yes
Interest option, income option
Loan value
Is a death benefit taxable?
Is the interest earned on a death benefit taxable?
Policy settlement options (2)
Under the policy loan provision, cash value equals
No
Is a death benefit taxable?
Yes
Is the interest earned on a death benefit taxable?
72 terms
Life Insurance
An insurance policy
Transfer of risks
Pooling of risks
The premium
Is a social device, legal contract, or policy for the transfe…
Through insurance individuals transfer to insurance companies…
Is when a large group of people contribute money to a fund ou…
Is the money paid by the policyowner to the insurance company…
An insurance policy
Is a social device, legal contract, or policy for the transfe…
Transfer of risks
Through insurance individuals transfer to insurance companies…
Life insurance Exam 2
5 years
Decrease
Premium at conversion is at insured's…
False
During what time period are the current premium and the maxim…
Under re-entry rating if no change in insureds insurability,…
Which statement is true regarding the conversion feature of a…
Reducing term policy can always be convertible at original pr…
5 years
During what time period are the current premium and the maxim…
Decrease
Under re-entry rating if no change in insureds insurability,…
68 terms
Life insurance Unit 2
Important disadvantages of joint life…
Under erisa requirements n employee co…
Which of the following types of life i…
Approximately what percentage of all l…
In business markets, joint life may eliminate rhe need for re…
False
Term insurance level premium whole life insurance Limited pay…
40%
Important disadvantages of joint life…
In business markets, joint life may eliminate rhe need for re…
Under erisa requirements n employee co…
False
16 terms
Life Insurance Test #2
What is convertability?
What are the two methods of conversion?
What is attained age?
What is original age?
Switching from term life to whole life
Attained age and original age
A conversion method; higher premium after conversion; premium…
A conversion method; lump sum at conversion in order to obtai…
What is convertability?
Switching from term life to whole life
What are the two methods of conversion?
Attained age and original age
40 terms
California Life & Health Insurance 2 - Life Insurance Basics
What are the personal uses of life ins…
Who is responsible for the contents of…
What type of policy issues certificate…
When must insurable interest exist in…
Survivor protection, estate creation and conservation, cash a…
The insurance company
Group Policy
At the time of application.
What are the personal uses of life ins…
Survivor protection, estate creation and conservation, cash a…
Who is responsible for the contents of…
The insurance company
22 terms
LIFE INSURANCE EXAM 2
Affordable Care Act
How ACA offers health care
The IRS is a part of the ACA
ACA affect on reducing uninsured Ameri…
Attempts to achieve nearly universal coverage by mandating in…
Access to subsidized or unsubsidized health care through exch…
Taxable income is a way to deduce applicability
18.2% down to 10.5%
Affordable Care Act
Attempts to achieve nearly universal coverage by mandating in…
How ACA offers health care
Access to subsidized or unsubsidized health care through exch…
21 terms
Life insurance Part 2
Old age, survivors and disability insu…
What determines the full amount of soc…
Which of these retirement plans can be…
Which retirement plan is to be used by…
Social security
Primary insurance amount (PIA)
Individual Retirement account (IRA)
Keogh plan
Old age, survivors and disability insu…
Social security
What determines the full amount of soc…
Primary insurance amount (PIA)
72 terms
Test 2 - Life Insurance
Term Insurance
Whole Life Insurance
Renewable
Life with Period Certain - Settlement…
temporary protection. only provides insurance for specified p…
provides lifetime insurance and a savings element (cash value…
provisions allows policyowner the right to renew the coverage…
Payment guaranteed for lifetime of annuitant (person receivin…
Term Insurance
temporary protection. only provides insurance for specified p…
Whole Life Insurance
provides lifetime insurance and a savings element (cash value…
71 terms
Life Insurance Test 2
Premature Death
Term Life Insurance
Whole Life Insurance in general
Endowment Insurance
...
...
-Permanent life insurance... -Prefunding of future mortality cos…
Includes a term life policy plus pure endowment.... -puts an emp…
Premature Death
...
Term Life Insurance
...
15 terms
Life insurance exam 2
Survivor protection
Date of application
The plan is funded by permanent insura…
Insured's close friend
Life insurance death benefits can be used to fund funeral and…
When must insurable interest exist in life insurance?
All of the following are true of key person insurance EXCEPT
All the following may have an insurable interest in the insur…
Survivor protection
Life insurance death benefits can be used to fund funeral and…
Date of application
When must insurable interest exist in life insurance?
32 terms
Chapter 2 Life Insurance
All of the following are powers and du…
1. Making false or misleading statemen…
2. Making an oral or written statement…
3. Using threat or force to create a m…
Answer: (Making insurance laws)
(Misrepresentation)
(Defamation)
(Boycott, coercion, and intimidation)
All of the following are powers and du…
Answer: (Making insurance laws)
1. Making false or misleading statemen…
(Misrepresentation)
50 terms
FP2 / Life Insurance / Part 2
What is an incontestability clause?
INCONTESTABILITY CLAUSE... The insurer c…
MISSTATEMENT OF AGE... This clause preve…
COMPLETE THE SENTENCE... All statements…
[1] An insurance contract is a contract made in the utmost of…
The insurer cannot challenge the information provided by the…
MISSTATEMENT OF AGE... While the insured is alive:... Usually, the…
All statements in the application are considered to be repres…
What is an incontestability clause?
[1] An insurance contract is a contract made in the utmost of…
INCONTESTABILITY CLAUSE... The insurer c…
The insurer cannot challenge the information provided by the…
51 terms
Life Insurance Policies - Provisions, Options and Riders - 2
Which of these is NOT a characteristic…
Of the following dividend options, whi…
Which of these is considered to be a L…
What is the name of the provision whic…
The benefit can be offered as a rider at a specific extra cos…
Accumulation at interest
Accelerated death benefit
Entire Contract
Which of these is NOT a characteristic…
The benefit can be offered as a rider at a specific extra cos…
Of the following dividend options, whi…
Accumulation at interest
7 terms
Health & Life Insurance 2-15
A sense of security
Scientific principles
Mathematical principles
Law of large numbers
The true significance of insurance is to replace the unknown…
Health insurance is based on
Life insurance is based on
The _______________ is the basic principle of insurance that…
A sense of security
The true significance of insurance is to replace the unknown…
Scientific principles
Health insurance is based on
23 terms
Health and Life insurance - Chapter 2
Notice of Applicant
False pretenses
Pretext interview
Consumer
This must be issued to all applicants for life or health insu…
Violators of the Fair Credit Reporting Act may be subject to…
Is an interview whereby a person, in an attempt to obtain inf…
Anyone about whom a company collects information is a consume…
Notice of Applicant
This must be issued to all applicants for life or health insu…
False pretenses
Violators of the Fair Credit Reporting Act may be subject to…
13 terms
life insurance
unexpected
impact
soon
long
prepare for the unexpected
minimizing financial impact
dying too soon
living too long
unexpected
prepare for the unexpected
impact
minimizing financial impact
120 terms
Life Insurance
401k
absolute assignment
collateral assignment
accelerated death benefit
a qualified retirement plan in which the employee can set asi…
a permanent and irrevocable transfer of rights and/or benefit…
a temporary and/or revocable transfer of benefits by the poli…
policy provision that allows full or partial payment of the p…
401k
a qualified retirement plan in which the employee can set asi…
absolute assignment
a permanent and irrevocable transfer of rights and/or benefit…
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