Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Health > Life-Health Insurance > Flashcards

Life-Health Insurance Flashcards

1
Q

What is the name of the contract between issuer and producer

A

Agency Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What general information is needed to complete the first part of the Insurance Policy?

A

Name, age, address, birth date, gender, income, marital status, occupation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What medical information is requested in the second part of the application?

A

Medical background, present health, medical visits in recent years, medical status of living relatives, and causes of death of deceased relatives.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the 4 types of insurance transaction?

A

Solicitation, Negotiations, Sales, Advising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What law protects consumers from the circulation of inaccurate or obsolete information?

A

The Fair Reporting Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the term for a state issued document that admits insurance companies to perform legal transactions?

A

Certificate of Authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 4 elements of an insurance contract?

A

Agreement (offer and acceptance), consideration, competent parties, legal purpose

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What document allows an insurer to transact insurance?

A

Certificate of Authority

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

When does a policy go into affect?

A

When the policy is delivered and the premium is paid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What type of report provides information about the applicant’s hobbies, habits and financial status?

A

Inspection Report

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What entities make-up the MIB

A

Insurers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

To obtain information about an applicant from investigators, what document must an insurer provide to the applicant?

A

Disclosure Authorization Notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the term for: availability of cash value?

A

Liquidity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is cash accumulation?

A

cash growth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the personal uses of life insurance?

A

Survivor protection, estate creation, cash accumulation, and liquidity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the 3 factors that determine the premium for a life insurance policy?

A

Mortality (Age, medical background, occupation), interest and expense

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What document must a producer provide to the insured during policy replacement?

A

Notice Regarding Replacement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is Estate Conservation?

A

When life insurance is used to pay state inheritance taxes and federal estate taxes, in order to eliminate the need to sell assets from the estate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What factor decreases in a Decreasing Term Life Insurance.

A

Face

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is the waiting period for Social Security Disability Benefits?

A

5 months

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Who assumes the investment risk in a variable life policy?

A

The policy owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

To be eligible for HIPAA regulations, how long should an individual health plan have been covered under teh previous group plan?

A

18 months

23
Q

What Florida Act serves to regulate group health insurance provisions provided by insurers or HMOs to small employers?

A

Florida Employee Health Care Access Act

24
Q

What is the maximum surrender charge for a withdrawal of money in an annuity contract for a senior consumer over age 65?

A

10%

25
Q

How many days after the premium due date does one have to make a change to a paid-up nonforfeiture benefit option?

A

60

26
Q

On what type of basis do HMOs that contract with outside physicians compensate their providers?

A

Capitation basis

27
Q

What violations of the unfair trade practice act are referred to by the term “Twisting”?

A

Misleading representations, incomplete or fraudulent comparisons for the purpose of inducing any person to lapse, forfeit, terminate, surrender or convert any insurance policy with another insurance company or HMO.

28
Q

When can a LTC policy deny a claim for losses incurred because of a pre-existing condition?

A

Within 6 months of the effective date of coverage

29
Q

What is the purpose of a disclosure statement in life insurance policies?

A

To explain features and benefits of a proposed policy to the consumer

30
Q

At what point must an Outline of Coverage be delivered?

A

At the time of application or upon delivery of the policy

31
Q

That is the purest form of term insurance, requring the least expensive first-year premium payment?

A

Annually Renewable Term

32
Q

What must every applicant for life insurance policy be given in order to provide basic information about the cost and coverage of the insurance being solicited?

A

Disclosure Statement

33
Q

Who must approve a Written Disclosure?

A

The head of the Department of Insurance

34
Q

What is the name for an over-funded life insurance policy?

A

A Modified Endowment Contract (MEC)

35
Q

What is the general taxation rule for death benefits payable to the beneficiary of a life insurance policy?

A

Death benefits are generally not subject to income taxes.

36
Q

Who may contribute to an HR-10 plan?

A

A self employed individual

37
Q

How are cash value increases taxed?

A

Cash value growth is tax deferred

38
Q

If a retirement plan is ‘qualified’, what does that mean?

A

The plan has favorable tax treatment

39
Q

What is a ‘Profit-sharing’ plan

A

As with an employer sponsoring a qualified retirement plan for it’s employees, where the employer contributes money whenever the business has profit.

40
Q

What qualified plan is suitable for the self-employed?

A

HR-10 or Keogh

41
Q

What is the main purpose of the Seven-pay Test?

A

To determine if a life insurance policy is a Modified Endowment Contract

42
Q

What is the penalty for excessive contribution to a tradtional IRA?

A

A: 0.06

43
Q

Who would be considered a third-party owner?

A

An individual who is not the insured

44
Q

When would life insurance policy proceeds be included in the insured’s taxable estate?

A

When there is an incident of ownership at the time of death.

45
Q

Why are dividends in life insurance policies not taxable?

A

Dividends are not considered income for tax purposes; they are a return of unused premium.

46
Q

In a direct rollover, how is the money transferred from one retirement plan to a new one?

A

From trustee to trustee

47
Q

What are the 3 types of Social Security Benefits?

A

Retirement, disability, survivors

48
Q

What portion of the cash value will be taxed upon surrender of a life insurance policy?

A

That in excess of the premium paid

49
Q

What are some examples of qualified plans?

A

IRA, 401(k), HR10 (Keogh), SEP, SIMPLE

50
Q

SIMPLE plans are available to groups of how many employees?

A
51
Q

How are income payments from a 403(b) plan taxed?

A

Income payment contributions are not taxed until they are withdrawn

52
Q

What is a qualified profit-sharing plan?

A

A defined contribution plan in which your employer has discretion to determine when and how much the company pays into the plan.

53
Q

What qualifies for tax-sheltered annuities, or 403(b) plans?

A

Employees of nonprofit organizations under Section 501(c)(3) and employees of public school systems.

54
Q

What portion of the death benefit is taxed?

A

Interest

Health (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions