Comp. Exam Study Flashcards
(42 cards)
What will an Absolute Assignment be considered as ?
Permanent
What is Collateral Assignment? D
Hint : Bankrupt
allows the bank to be named as the assignee on the borrower’s life insurance policy
What is Joint Survivorship, and what does it help with ?
it is ideally for estate planning, pays out the death benefits ONLY after both spouses has died, helps with estate taxes
How long does the insured life expectancy have to be in order for Acclerated Benefits to be payable
6 Months
What is Decreasing Term ?
an insurance that a death benefit that decreases over time
What is the main reason for a Universal Life policy to have a surrender charge?
This provides a means for the insurer to recapture their upfront expenses involved in issuing the policy
Tom submits an application and a premium check. Six days later, the insurer issues the policy as applied for and mails it overnight to Tom’s producer. Tom picks up the policy at his producer’s office the next day. When did Tom’s coverage begin?
The day Tom SUBMITTED his application
Why is field underwriting important?
because it is due to the risk of Moral Hazard
Which of the following is consistent with group health underwriting
Each member of the group is covered regardless of his or her health history.
Which of the following would have the lowest first year annual premium for a 30 year old , all other factors being equal ?
Term to Age 50
What is the parentage patients pay , under Medicare Part B ?
patients typically pay 20% of the approved amount for covered service after the deductible has been met
Before coverage begins , the patient will have to go through the :
Probationary Period
What is a Material Statement ?
A statement that caused the insurer to not issue the policy
When collecting payment amounts , what is NOT a factor ?
State of Residence
What is the risk to the purchaser in a VIATICAL SETTLEMENT transaction ?
The insured does not die within the time period anticipated
G applies for a policy as a standard risk after paying the initial premium. After thorough underwriting, the insurer issues the policy as a substandard risk. The issued policy represents:
The insurers counteroffer
Who is responsible for the Approval of rates ?
Office of Regulation
A client wants coverage for himself as well as coverage for his wife and children all under one policy at an affordable price. Which rider will provide this ?
Family Rider - provides insurance for family members
What does an Family Income Rider do ?
They provide monthly income for certain period if the insured dies
In a WHOLE LIFE POLICY, cash value MUST be made available to borrow in ______
3 Years
Key Person Life Insurance is written for the benefit of the :
Employer
Key Person Life Insurance is purchased by who ?
A Business
What does a Key Person protect itself from ?
Financial Loss
A group of individuals want to obtain a lower collective insurance premium , is this allowed ? and why
No. It must be for a reason other reducing the cost
