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Life Exam Flashcards

(104 cards)

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1
Q

Free Look Period

A

review policy for a specific number of days

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2
Q

What type of risk classification, excellent health, non smoking

A

Preferred

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3
Q

FCRA

A

authorize insurers to gather info through credit and consumer reports that’s fair

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4
Q

Binding Receipt

A

Unconditional receipt

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5
Q

Life insurance that provides coverage for a certain time, no cash value

A

Term Life

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6
Q

Which life insurance combines both tern and permanent life insurance

A

adjustable/universal

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7
Q

Uncontestable how long to dispute a claim?

A

2 years

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8
Q

Family income policy purpose?

A

Provides a monthly income to beneficiaries for specific period following insureds death

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9
Q

Which nonforfeiture option uses cash value to keep coverage in force for a limited time

A

Extended term option

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10
Q

Misstatement of age provision effect?

A

Adjust benefits to reflect the correct age

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11
Q

A rider allows PH to add coverage for their spouse and children under one policy

A

Dependent

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12
Q

What insurance provides a death benefit for a specific period, often aligned with a debt like mortgage, decreasing over time

A

Decreasing Term

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13
Q

Leave dividends with the insurer to earn interest ?

A

Accumulate interest

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14
Q

What policy provides permanent coverage and accumulate cash value?

A

Whole Life

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15
Q

A assignment transfer FULL policy to someone else

A

Absolute

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16
Q

Terminally ill you can get this rider to pay you while sick?

A

Accelerated benefits rider

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17
Q

Accumulate interest dividends

A

When you use dividends to decrease your premium.

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18
Q

Death benefit decreasing over time?

A

Decreasing term insurance

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19
Q

Increase coverage w/o proof of insurability every few yrs or life event

A

Guaranteed insurability rider

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20
Q

Clause that if PH commit suicide w/in 2 years they will not pay death benefit

A

Suicide Clause

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21
Q

Dividend option allows PH to buy addt one year term insurance

A

one year term option

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22
Q

In life insurance, what is grace period

A

To give addt time for premium payment w/o lapsing the policy

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23
Q

What is primary benefit of variable life policy

A

Guaranteed minimum death benefit with cash value tied to investment

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24
Q

Whole life- limited pay

A

Pay premiums for a specified period with coverage for life

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25
Loan provision allows for automatic payment of overdue premiums
Automatic premium loan
26
Which is excluded from life insurance policies
Death resulting from criminal activity
27
Part III of policy in agents report
Agent
28
Main purpose for the medical information bureau
To collect all medical information to prevent fraud
29
What type of insurance policy is suited for covering and funeral expenses with weekly premiums w weekly premiums and a small face amount
Industrial life
30
Which policy feature allows a life insurance to assign ownership to another person
Assignment clause
31
What term insurance renews every year w/o requiring new proof of insurability
Annual Renewable
32
Insurance policies are issued under a single master contract for a group of individuals
Group Life
33
A provision allows PH to reinstate a lapsed policy if certain conditions are met
Reinstatement provision
34
Policy doubles the face amount if he dies in accident
Accidental Death Benefit
35
Fixed premium and choose how the cash value is invested
Variable Life
36
Premiums are lower for the first 5 years and increases over time
Modified Whole Life
37
Special Class Applicant
Someone who has high risk and certain exclusions to their policy
38
Terminate whole life and receive cash value
Cash surrender option
39
Annuity
large some of money and distribute in payment for a certain amount of time or for life
40
3 people involved in an annuity
Owner- whoever pays into and owns the annuity Annuitant - person who receives income payment Beneficiary- cash value if the annuity dies
41
Annuitization phase
the period of time where the annuitant starts to receive income payments from the annuity
41
Accumulation period
the segment of time where contributions are made to the annuity. One lump sum or w payments
42
4 things the annuity amount is based on
-age/gender -income payment -accumulated cash -interest credited to annuity
43
Premium Payment Types
-Lump sum -one lump sum payment -Periodic- paid in installments
44
Variable Annuity
Fluctuate with the market value
45
Pure life
Receives money for the lifetime
46
Certain Annuity
Certain period of time that the money is paid out
47
Fixed annuity
Guranteed interest rate
48
Index annuity
agreement for a certain amount and annuitant receiving the rest of the money
49
403B Plan
a retirement for public schools and tax-exempt organizations
50
Equity index annuity
guarantees min interest rate but an extra interest linked to market interest
51
1035 exchange
tax free exchanges between ins and annuities under IRS rules
52
Fixed Annuities
predetermined interest rate and the insurer bears the investment risk
53
Variable annuities
linked to the stock market
54
Cash Refund option on Annuity
remaining balance is refunded in a lump sum if the annuitant dies before receiving total payments equal to purchase price
55
Deferred annuity
annuity that delays payments until after a specific period ( usually after an year)
56
Immediate annuity
starts payments within a year of payments
57
Single Premium
Lump sum of money
58
Equity index annuity
based on how well the stock market is
59
Exclusion ratio
determine the tax free portion of annuity payments
60
Straight life annuity
guarantee income only for the annuitant lifetime
61
Period Certain annuity
ensures payments for a set period, regardless of annuitant's life span
62
Accumulation in variable annuity represents
the investment gains during the accumulation phase
63
What does black out period in SS
when surviving spouse not eligible for benefits until retirement age
64
How many credits required to receive SS
A worked must accumulate 40 credits
65
FICA
taxes used to fund SS and medicare
66
Qualified retirement plan
plan approved by IRS that provides tax benefits to employers and employees
67
Keogh plan
Self employed individuals
68
Fully insured
disability income under SS
69
Traditional IRA penalized if you w/draw before age
59.5 years old
70
ERISA is
set standards for employer sponsored pension/health plans
71
ROTH IRA allows tax free w/drawls if the account holder is
59.5
72
Defined Contribution plan
benefits based on the amount contributed and the of the performance investments.
73
IRA w/drawls before 59 is penalized how much
10%
74
Advantage of 403B plan ( teachers plan)
tax deferred until w/draws funds
75
What is SEP
Self employed individuals to make larger tax-deductible contributions
76
What is PIA
Entire retirement when reached retirement age
77
Binding receipt is also known as
Unconditional receipt
78
Combine term and permanent life insurance policies
Universal life
79
Incontestable clause how long does an insurer have to dispute the validity of a policy
2 years
80
Primary purpose of a family income policy
provide monthly income to family for specific following insurer death
81
Nonforfeiture option uses cash value to keep coverage in force for a limited time
Extended term option
82
Misstatement of Age provision
Adjust benefits to reflect the correct age
83
Which ride can a PH add coverage for their spouse/children under one policy
Dependent rider
84
Decreasing Term
insurance provides a death benefit got a specific period, decreasing over time, can pay things off
85
Accumulate interest
option allows PH to leave dividends with the insurer and earn interest
86
Whole life
insurance policy provides permanent coverage and accumulate cash value
87
Transfers full policy ownership to another person
Absolute Assignment
88
Life insurance dividends reduce premium payments each year is what dividend option
Reduced premium option
89
Variable life insurance policy
guaranteed minimum death benefit w cash value tied to investment performance
90
A whole life "limited pay"
par premiums for a specific period w coverage for life
91
Automatic premium loan
pay premium with cash value so doesnt lapse
92
Industrial life
cover funerla and small face amount
93
Assignment clause
assign policy ownership to someone els e
94
Annual renewable
term policy renews and goes up based on the age
95
Group life
under single master contract for a group individuals ex work health insurance
96
What type of buy sell agreement involves a partnership?
97
When the rights of one person is transferred to another person
Assignment
98
In FL annuity period
14 days
99
Paying life policy premiums frequently impacts the
Cost
100
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103

Life Exam (1 decks)

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