SC Life, Accident, Health accurate 100%

SC Life, Accident, Health accurate 100% Reciprocal Agreement -ANSWER Two states allowing for non resident license What two brokers dont need a license -ANSWER Surplus and Excess Fine for selling ins without license? -ANSWER $10,000 Who examines foreign and alien insurers? -ANSWER Regulatory authority What is the biennial appointment fee? -ANSWER $40 What is the application fee? -ANSWER $25 What is Section 1034? -ANSWER Authorizes the attorney general to provide civil and criminal punishment to those breaking Section 1033 (dishonesty, etc.) What does Gramm Leach Biley Act do? -ANSWER Protects consumer info through privacy regulation How much you give notice of privacy and health info? -ANSWER In person annually What is the fine for blank forms? -ANSWER $200 What are prohibited inducements? -ANSWER Promise of returns (opposite of rebate which is incentive up front) How does one get immunity from fraud? -ANSWER Reporting it (Restitution is still on table) Difference between twisting and misrepresentation? -ANSWER Twisting is for purpose of replacing policy Where is the Insurance Fraud Division? -ANSWER Attorney general office What is a contract of adhesion? -ANSWER Take it or leave it What is an aleatory contract? -ANSWER Unequal amounts between parties What is a unilateral contract? -ANSWER Only one party makes enforceable promise What is the Law of Agency? -ANSWER Producer acts on behalf of the principal What are the pieces of a contract? -ANSWER Agreement (Offer/Acceptance), Consideration, Competent Parties, Legal Purpose Why purpose does the government provide insurance? -ANSWER Social purposes What are living benefits? -ANSWER Cash Value of policy How can CV be accessed? -ANSWER Withdraw, Surrender, and Policy Loan What do estate death benefits help pay? -ANSWER Taxes on assets as well as any potential debts What is the difference between a Viatical Settlement and a Life Settlement? -ANSWER Viatical has a higher premium due to lower life expectancy. For Viatical, the insured must be terminally or chronically ill. Terminal ill means life expectancy shorter than 24 months. What is insurable interest? -ANSWER When someone or a company has interest in your life or property How long is the contestability Period? -ANSWER 2 years What is a buy sell agreement? -ANSWER It is where the owners interest is bought by partners (doesn't fund) What is a cross purchase buy sell? -ANSWER Where partners of shareholders are each others beneficiaries so the death benefit can be used to pay their interest in the company What is an entity buy sell? -ANSWER When business is a party in the agreement and pays for partners policies (4 partners, 4 policies) Key person buy sell? -ANSWER When the company wants to insure one person to ma