Insurance and risk management Flashcards
(22 cards)
a mutual insurance company is owned by the ___ who are in a position similar to stockholders. they benefit from increased ___.
policyholders
earnings
Once the insured has paid the out of pocket maximum, the stop loss provision indicates that the policy will pay__ of any remaining covered expenses
100%
Insurance companies can more easily underwrite multiple lives for a single employer and can send a single premium notice. These cost savings are ___ in order to make small group coverage more attractive to purchase
passed through
Age __ and up is the appropriate time to recommend LTC insurance
50
With ___ the face amount of the policy stays the same, but it is flipped to an extended term insurance policy
extended term insurance
A __ clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment.
nonforfeiture
Life insurance policyholders can select one of four nonforfeiture benefit options:
the cash surrender value,
extended term insurance,
loan value, and
paid-up insurance.
n/a
n/a
__ Insurance is a non-forfeiture option available only on whole life policies, which gives the policyowner the right to a fully paid-up policy for some reduced amount guaranteed death benefit when they are ready to stop paying premiums
Reduced Paid-Up
__ life insurance offers flexible premium payments and variable underlying subaccounts that offer more investment options than traditional or universal life insurance
variable universal
Universal life insurance offers flexible premium payments, but the cash value is invested in the ___ of the insurance company (mainly fixed income) and variable subaccounts are not permitted.
general account
Medicare coverage as an employee is secondary to employer coverage for employers with 20 or more employees TorF
True
Split-dollar life insurance
a premium and death benefit sharing arrangement between the employer and the employee. Common with key-executives and typically not offered to all employees
Additional life insurance at an extra cost to the employee
supplemental life insurance
For a skilled nursing facility, in Medicare, client pays____ for days 1-20. Client pays up to ___ for days 21-100. Medicare pays __ after day 100.
nothing.
co-pay.
nothing.
Participating whole life insurance is generally the __ expensive of all life insurance products and has a __ premium. Cash value is in vested in the __ of the insurance company. (in primarily FI)
most expensive.
fixed premium.
general account.
If the employer deducts premiums and does not include them in the employee’s compensation, then all benefits received are __ to the employee
taxable
Calculate coinsurance amount from replacement cost.
Find percentage of covered as percentage of coinsurance requirement. The client will be responsible for that 11% amount.
Repair cost - deductble. Times % required by client = total out of pocket
n/a
n/a
Clients with substantial net worth which may be subject to potential liability loss exposure. A __ policy is designed to protect the insured from various catastrophic personal liability losses.
umbrella policy
Affordable Care Act (ACA) mandates that all health insurance carriers in every state that offer coverage to both adults and their dependents must allow dependents to remain on their parents or guardians’ “family” plans until the dependents are __ years old.
26
___ insurance can be appropriate when the objective is to preserve the estate, maintain standard of living, and they have ability to purchase additional insurance.
Long Term Care insurance
___ is medicare supplement insurance that helps fill gaps in original medicare and is sold by private companies. IT can help pay for copayments, coinsurance, deductibles
Medigap
Insurance settlements received as damages on account of personal physical injruies or physical sickness are ___ income.
excluded from
