RMIN 4000 Edmunds Exam 3 Questions and Answers Solved 100%

401k plan - income-tax deductible, investment income accumulates tax free, distributions taxed upon withdrawal, and any employer match that is received does not count towards contribution limit additional insureds - person or party added to the policy by an endorsement (lenders and mortgagors) advantages of group insurance - may be less expensive, tax benefits to employees (costs are usually pre tax), employer may pay all/part of premium, no evidence of insurability-no physical exam, and may get insurance you wouldn't have bought otherwise advantages of high deductible plans - consumers with high deductibles will be cost sensitive and avoid unnecessary tests, unused money in the HSA can be saved for retirement, and health insurance premium is more afforadable (lower premiums) Advantages of HMO - although premiums are high, annual costs may be lower because costsharing is lower (coinsurance, deductibles) and broad care; usually good communication between providers advantages of PPO - no referral needed and can go to out-of-network providers advantages of universal life insurance - flexibility in payments, cash withdrawals are permitted, and favorable tax benefits (death benefit is normally tax free) advantages of whole life insurance - maintain coverage for your entire life (vs a certain time period with term) and accumulate savings (cash-value) Affordable Care Act (ACA) - insurers cannot deny coverage due to preexisting conditions, insurers may only rate on a few variables, buy health insurance or pay penalty (been repealed), firms with 50+ employees must provide HI, insurers pay 85% of premiums in claimsaggregate deductible - The amount the insured is responsible for in total (over all losses during policy period) before the insured pays anything annuities - a periodic payment that continues for a fixed period or for the duration of a designated life or lives automatic premium loan - Allows the insurer to borrow from the cash value to pay unpaid premium after grace period expires. It makes sure that the policy does not lapse basic parts of an insurance contract - declarations, definitions, insuring agreement, exclusions, conditions, and miscellaneous provisions beneficiary designation - primary/contingent, revocable/irrevocable, and specific person(s)/class Bryan Tedford - disruptive insurance delivery technology; to infinity and beyond! sustainability insurance and ESG calendar-year deductible - an aggregate deductible that must be satisfied during the calendar year (amount insured is responsible for in total before insurer pays anything) Cash Surrender Value - the amount paid to a policyholder who surrenders the policy in an ordinary whole life insurance policy change of plan provision - provides policyholders flexibility to change plans coinsurance - the percentage of the bill in excess of the deductible, which the insured must pay out-of-pocket up to some maximum annual dollar limit; usually 20-30% and helps prevent overutilizing plan benefits coinsurance in health - provision that requires the insured to pay a specified percentage of covered medical expenses after the deductible is met (reduce premiums and prevent overusing policy benefits)coinsurance in property insurance - Encourages the insured to insure the property to a stated percentage of its insurable value. If the coinsurance requirement is not met at the time of loss, the insured must share in the loss as a coinsurer conditions - provisions in the policy that qualify or place limitations on the insurer's promise to perform (prompt notification of loss, no concealment or fraud, etc.) contribution by equal shares - each insurer shares equally in the loss until the share paid by each insurer equals the lowest limit of liability under any policy, or until the full amount of the loss is paid copayment - a flat amount the insured must pay for certain benefits, such as an office visit or generic drug (does not count towards annual deductible) covered benefits in health insurance - inpatient hospitalization, treatment and emergency rooms, physicians, surgery, therapists, preventative/wellness like flu shots and screenings, and prescribed drugs declarations - statements that provide information about the particular property or activity to be insured deductible - a provision by which a specified amount is subtracted from the total loss payment that would otherwise be payable definitions - key words or phrases are defined so that coverage under the policy can be determined more easily (insurer-"we,us,out" vs. insured-"you,your") different between traditional IRA and Roth IRA - Roth is tax free distributions instead of tax upon withdrawal, with no age limit and nondeductible contributions