Risk/Insurance Flashcards
(14 cards)
If asked to identify insurance deficiencies within a case study
usually a need for an umbrella liability policy
MEC is appropriate when
If the client has a lump sum of money and buys a single premium life insurance product to provide for a bequest, then it is intentionally a MEC, and that is an advantage bc the policy is serving the purpe the policyowner intends
MECs are only a disadvantage when
When a policy is unintentinally made a MEC
Twisting
Using misrepresentatinos to induce lapse, forfeiture or surrender of contract for purpose of selling new policy
Churning
Using contract value to purchase another contract and earn commissions without reasonable belief it benefits client
Group Disability vs. Individual Insurance
Group is something broader and usually less expensive
COBRA applies to
- ERs who have a plan and 20 or more EEs (including part-time counting as half EEs)
- loss of coverage for the covered EE, EE spource and/or dependent child
- Any ER-sponsored plan that provides Medicare Care - incl prescription drugs, vision, dental, to EEs and their families
Does not apply to plans that provdie only life insurance or disability benefits
COBRA qualifying events allow for
continuous coverage for maximum period
COBRA qualifying events
18 months (work-related events)
- reduction in hours
- quitting
- normal termination (not for gross misconduct)
COBRA qualifying events
29 months (SS disability)
EE or qualified bene meets SS definition of disability
COBRA qualifying events
36 months (other events)
- death
- divorce
- medical eligibility (EE)
- child reaching age 26
Activities of daily living (ADLs) for long-term care insurance
Unable to perform 2 of 6 for at least 90 days
BEDTC (bed to chair)
Bathing
Eating
Dressing
Toileting
Continence
Coinsurance formula
(Amount of insurance / 80% of RC) x Loss - Deductible
