LIFE ACCIDENT and SICKNESS GA
QUESTIONS WITH VERIFIED
ANSWERS
What is the maximum yearly contribution can an individual make into an IRA? An HR-
10? - ANSWERS2,000 or 100% of earned income, whichever is less; 100% of earned
income up to $41,000
which is broader? acc bodily injury or accidental means? - ANSWERSaccidental bodily
injury
Who manages a reciprocal? - ANSWERSattorney in fact
Reserves are defined as... - ANSWERSthe accounting measurements of an insurer's
liabilities to its policy holders
No COA required if agent - ANSWERSPlaces less than 12 policies per year through
another agent; or places business with an insurer, and then has up to 15 days to
request a COA
At what age is the policyholder written for on a group medicare conversion that's being
replaced with another group? - ANSWERScoverage is written on the policyholder at the
insured's age it was written at the inception of the replaced coverage.
Certificate of authority renewal - ANSWERSannually by insurer, before january 1 each
year, but expires midnight june 30th the following year
Qualifications for a license - ANSWERS18, resident of GA for 6 months out of each
year, educational requirement, 5 years experience to be a counselor, no longer required
to be a US citizen.
When can the commissioner waive the residency requirement? - ANSWERSborderline
agent, if you live on the border of GA but majority of business comes from GA, you must
have a GA license.
Indemnification vs. indemnity vs indemnify is... - ANSWERSthe process restoring
someone to economic status prior to a loss without a gain, the promise to pay the
proceeds without gain after a loss, the act of paying the proceeds
Define the difference in insurable interest in life and health as opposed to P&C -
ANSWERSinsurable interest in L&H must be present at the effective date of app. II in
P&C must exist at the time of the loss. ( lady w 5 ex husbands collects 5 million)
,Controlled Business - ANSWERSSpouse, family, in laws, kinship; exes and friends are
not controlled business. premium must be less than 25% of business you are legal, 25%
or more is illegal.
Blue Cross Blue Shield does it cover large groups only? Does it get special
consideration from the government? Does it contract services with providers? Do
subscribers pay a set fee? - ANSWERScovers individuals as well as small and large
groups. Non profit organization. contractual relationship with the doctors and hospitals.
Subscribers pay a set fee.
What are participating and non-participating companies? - ANSWERSParticipating
policies are issued by mutual life insurance companies. Non-participating policies are
issued by stock life insurance companies.
Do mutual companies pay dividends? - ANSWERSMutual life insurance companies pay
dividends to the policy holder.
When is the school certificate of completion void? - ANSWERSAfter 12 months.
What can assessment insurers do? - ANSWERScharge policyholders additional
premiums if those paid in are insufficient to meet claims. "open-end contract"
Temporary license - ANSWERSno exam, usually issued for hardship cases or the debit
agent only valid for one company.
originally issued for 6 months, can renew 3 times for 3 months a piece. total of 15
months
Identify the landmark court cases - ANSWERSMcCarran-Ferguson Act, enacted in
order for the federal govt to regulate the business of ins not reg by state law. Fair credit
reporting act protects consumers privacy and requires consumer reporting agencies to
ensure accurate records and reporting. Consumer reports issued to persons who have
a legitimate business need for the information.
Reciprocal License (Retaliatory) - ANSWERSIf both states reciprocate license can be
transferred to a new state, they treat each other the way the other treats them
Probationary License - ANSWERSUp to 12 months, no less than 3; under
circumstances state chooses to say if you do -- we will make license permanent (ex.
drug use)
Can a resident conduct business after moving to a new state with the old state's
license? - ANSWERSYes for 90 days if license from other state is in good standing.
Twisting - ANSWERSMaking unfair comparison
ex- bait and switch tactic
, Churning - ANSWERSReplacing your own company's business from within.
ex- canceled ins pol to rewrite to make more commission.
Coersion - ANSWERSforcing someone into doing something
pressue, ect
Defamation - ANSWERSDisparaging talk about a company, good, products, person, etc
At what age can minors enter into a contract for insurance? - ANSWERSA person not
less than 15 years of age as determined by the nearest birthday, but it is not valid
unless an age of Majority, age 18, parent or guardian, also signs.
unfair trade practices - ANSWERScoercion, defamation, twisting, churning, rebates and
inducements, misrepresentation of medicare/medicaid,rights of borrowers
rights of borrowers - ANSWERSthe lender can offer insurance, but cannot force the
borrower to make you buy it from them.
Coverage for newly borns on life insurance - ANSWERScovered but must survive 15
days before a death claim would be payable
coverage for newly born or adopted children on Health Insurance - ANSWERSChild is
covered at first breath and would be covered for the first 31 days, but not after 31 days
unless the parent adds them to policy
creditor vs. debtor - ANSWERScreditor= bank; debtor= borrower or client
Age requirement for credit life - ANSWERS70 or must pay off before 71
age requirement for credit accident and sickness (health) - ANSWERS65, or pay off
before 66
uses of life insurance - ANSWERSbusiness continuation, BOE
cross purchase
entity purchase
section 303 stock redemption
deferred compensation
split dollar
key person
buy-sell agreement
cross-purchase plan
entity-purchase plan
buy-sell agreement - ANSWERSallows associates of the deceased to purchase
deceased's interest.
QUESTIONS WITH VERIFIED
ANSWERS
What is the maximum yearly contribution can an individual make into an IRA? An HR-
10? - ANSWERS2,000 or 100% of earned income, whichever is less; 100% of earned
income up to $41,000
which is broader? acc bodily injury or accidental means? - ANSWERSaccidental bodily
injury
Who manages a reciprocal? - ANSWERSattorney in fact
Reserves are defined as... - ANSWERSthe accounting measurements of an insurer's
liabilities to its policy holders
No COA required if agent - ANSWERSPlaces less than 12 policies per year through
another agent; or places business with an insurer, and then has up to 15 days to
request a COA
At what age is the policyholder written for on a group medicare conversion that's being
replaced with another group? - ANSWERScoverage is written on the policyholder at the
insured's age it was written at the inception of the replaced coverage.
Certificate of authority renewal - ANSWERSannually by insurer, before january 1 each
year, but expires midnight june 30th the following year
Qualifications for a license - ANSWERS18, resident of GA for 6 months out of each
year, educational requirement, 5 years experience to be a counselor, no longer required
to be a US citizen.
When can the commissioner waive the residency requirement? - ANSWERSborderline
agent, if you live on the border of GA but majority of business comes from GA, you must
have a GA license.
Indemnification vs. indemnity vs indemnify is... - ANSWERSthe process restoring
someone to economic status prior to a loss without a gain, the promise to pay the
proceeds without gain after a loss, the act of paying the proceeds
Define the difference in insurable interest in life and health as opposed to P&C -
ANSWERSinsurable interest in L&H must be present at the effective date of app. II in
P&C must exist at the time of the loss. ( lady w 5 ex husbands collects 5 million)
,Controlled Business - ANSWERSSpouse, family, in laws, kinship; exes and friends are
not controlled business. premium must be less than 25% of business you are legal, 25%
or more is illegal.
Blue Cross Blue Shield does it cover large groups only? Does it get special
consideration from the government? Does it contract services with providers? Do
subscribers pay a set fee? - ANSWERScovers individuals as well as small and large
groups. Non profit organization. contractual relationship with the doctors and hospitals.
Subscribers pay a set fee.
What are participating and non-participating companies? - ANSWERSParticipating
policies are issued by mutual life insurance companies. Non-participating policies are
issued by stock life insurance companies.
Do mutual companies pay dividends? - ANSWERSMutual life insurance companies pay
dividends to the policy holder.
When is the school certificate of completion void? - ANSWERSAfter 12 months.
What can assessment insurers do? - ANSWERScharge policyholders additional
premiums if those paid in are insufficient to meet claims. "open-end contract"
Temporary license - ANSWERSno exam, usually issued for hardship cases or the debit
agent only valid for one company.
originally issued for 6 months, can renew 3 times for 3 months a piece. total of 15
months
Identify the landmark court cases - ANSWERSMcCarran-Ferguson Act, enacted in
order for the federal govt to regulate the business of ins not reg by state law. Fair credit
reporting act protects consumers privacy and requires consumer reporting agencies to
ensure accurate records and reporting. Consumer reports issued to persons who have
a legitimate business need for the information.
Reciprocal License (Retaliatory) - ANSWERSIf both states reciprocate license can be
transferred to a new state, they treat each other the way the other treats them
Probationary License - ANSWERSUp to 12 months, no less than 3; under
circumstances state chooses to say if you do -- we will make license permanent (ex.
drug use)
Can a resident conduct business after moving to a new state with the old state's
license? - ANSWERSYes for 90 days if license from other state is in good standing.
Twisting - ANSWERSMaking unfair comparison
ex- bait and switch tactic
, Churning - ANSWERSReplacing your own company's business from within.
ex- canceled ins pol to rewrite to make more commission.
Coersion - ANSWERSforcing someone into doing something
pressue, ect
Defamation - ANSWERSDisparaging talk about a company, good, products, person, etc
At what age can minors enter into a contract for insurance? - ANSWERSA person not
less than 15 years of age as determined by the nearest birthday, but it is not valid
unless an age of Majority, age 18, parent or guardian, also signs.
unfair trade practices - ANSWERScoercion, defamation, twisting, churning, rebates and
inducements, misrepresentation of medicare/medicaid,rights of borrowers
rights of borrowers - ANSWERSthe lender can offer insurance, but cannot force the
borrower to make you buy it from them.
Coverage for newly borns on life insurance - ANSWERScovered but must survive 15
days before a death claim would be payable
coverage for newly born or adopted children on Health Insurance - ANSWERSChild is
covered at first breath and would be covered for the first 31 days, but not after 31 days
unless the parent adds them to policy
creditor vs. debtor - ANSWERScreditor= bank; debtor= borrower or client
Age requirement for credit life - ANSWERS70 or must pay off before 71
age requirement for credit accident and sickness (health) - ANSWERS65, or pay off
before 66
uses of life insurance - ANSWERSbusiness continuation, BOE
cross purchase
entity purchase
section 303 stock redemption
deferred compensation
split dollar
key person
buy-sell agreement
cross-purchase plan
entity-purchase plan
buy-sell agreement - ANSWERSallows associates of the deceased to purchase
deceased's interest.
