LIFE INSURANCE Studienführer, Klassennotizen & Zusammenfassungen

Adverse Selection - ANSWER insuring of risks that are more prone to losses than the average risk lapse - ANSWER policy termination due to nonpayment of premium Insurance - ANSWER transfers risk of loss from an individual or business entity to an insurance company which in turn spreads the costs of unexpected losses to many individuals Life Insurance - ANSWER protects against loss associated with an insured's death, and pays a death benefit to beneficiaries upon death of the insured

The Commissioner conducts an examination of a domestic insurer and believes that the costs of examination places an unreasonable financial burden on the insurer. Which of the following will happen? a. The federal government will absorb the full cost b. The federal government will absorb part of the cost, and the state government will absorb the rest of the cost c. The costs will be reduced to the amount that the examinee can reasonable pat; the rest will be paid by the federal government ...

401 K plan - ANSWER A qualified retirement plan in which the employee can set aside a portion of their income with pre-tax dollars Absolute Assignment v. Collateral Assignment - ANSWER Absolute: A permanent and irrevocable transfer of rights and/or benefits by the policyowner. Collateral: A temporary and/or revocable transfer of benefits by the policyowner.

Which of the following is NOT a characteristic of a Variable Annuity? A. Premium Payments may be level or flexible or single premium B. The cash values are invested in securities. C. The non-forfeiture values will provide for the return of the cash value should the annuitant die during the accumulation period. D. It provides for a tax-free death benefit. - ANSWER D. It provides for a tax-free death benefit.

Who is considered a field underwriter? - ANSWER An agent When must insurable interest exist in life insurance? - ANSWER Application or issue date If no receipt is issued at the time of application, a statement of good health is usually required at the time of? - ANSWER Policy delivery The Medical Information Bureau is?(MIB) - ANSWER a source of medical information to alert insurers to adverse medical history

a whole life policy that provides a choice of dividend options include the following statement about dividends they accrue at a guaranteed rate they are deferred for one year they are not guaranteed they are guaranteed after the first year - ANSWER they are not guaranteed

The key factor of representation that allows the intraparty to resend the contract is - ANSWER If the representation is false any marital point The written instrument in which a contract of insurance is set forth is known as - ANSWER A policy What is the term for a sale campaign conducted through mail - ANSWER Direct response What is reassurance - ANSWER An agreement between Cedar and assuming insurer Factual statements about the insured or the inch the risk insurance policy are considered...

Additional coverage can be added to a Whole Life policy by adding a(n) - ANSWER decreasing term rider All of these statements about the Waiver of Premium provision are correct EXCEPT - ANSWER Insured must be eligible for Social Security disability for claim to be accepted Which of these is an element of a Single Premium annuity? - ANSWER Lump-sum payment A lump-sum payment is required for a Single Premium annuity

There is a 10% penalty on the taxable portion of a deferred annuity when it is surrendered prior to what age? - ANSWER 59 1/2 Gross premium for a life insurance policy is determined by adding which to components - ANSWER Net premium and expenses An annuity would normally be purchased by an individual who wants to - ANSWER Provide income for retirement

an insured owns a 50000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently 20,000. what would be the face amount of the new term policy - ANSWER 50,000 all of the following are characteristics of group life insurance except - ANSWER premiums are determined by the age, sex and occupation of each individual certificate holder a rider attached to a life insurance policy that provides cove...