FLA (BUSINESS INSURANCE) HEALTH AND
LIFE AND ANNUITY TESTBOOK TERMS VAR
CONTRACTS 100% VERIFIED.
Reinsurers and Retention Limits
Reinsurers are a specialized branch of the insurance industry because they
insure insurers. Reinsurance is an arrangement by which an insurance company
transfers a portion of an assumed risk to another insurer. Usually, reinsurance
occurs to limit the loss any one insurer would face should a very large claim
become payable. Another reason for reinsurance is to enable a company to
meet specific objectives, such as favorable underwriting or mortality results.
The company transferring the risk is called the ceding company; the company
assuming the risk is the reinsurer. The portion of the risk that the ceding insurer
retains is called the net retention (or net line). A typical reinsurance contract
between two insurance companies is called treaty reinsurance, which involves
an automatic sharing of the risks assumed. In a reinsurance agreement, the
insurance company that transfers its loss exposure to another insurer is called
the primary insurer.
The net single premium for a life insurance policy is
A premium calculation used to calculate an insurers policy reserves factoring in
interest and mortality.
Surrender Cost Index
measures the cost of life insurance if you surrender the policy at the end of
some time period, such as 10 or 20 years, and takes compound interest into
account
Improper Annuity
Pay Restitution
COB
,coordination of benefits
Rebating is an unfair trade practice and is regulated by law. All of the
following would be considered to be rebating EXCEPT
Arcturial Class
fraud
A deliberate deception intended to secure an unfair or unlawful gain
Variable Whole Life Insurance
was created to help offset the effects of inflation on death benefits. It's
permanent life insurance with many of the same characteristics of traditional
whole life insurance. The main difference is the manner in which the policy's
values are invested. With traditional whole life, these values are kept in the
insurer's general accounts and invested in conservative investments selected by
the insurer to match its contractual guarantees and liabilities. With variable
life insurance policies, the policy values are invested in the insurer's separate
accounts which house common stock, bond, money market, and other securities
investment options. Values held in these separate accounts are invested in
riskier, but potentially higher yielding, assets than those held in the general
account. The basic characteristics of a variable life policy are: fixed premiums,
a guaranteed minimum death benefit which fluctuates over the minimum, and
cash values which fluctuate and are not guaranteed.
Variable Whole Life Insurance can be described as
Variable Whole Life Insurance is both an insurance and securities product.
Variable Whole Life
Offsets the effects of inflation on death benefits.
- Fixed Premiums
- Guaranteed Minimum Death Benefit which fluctuates
- Cash values which fluctuate and not guaranteed
Common Exclusions from Coverage
,Exclusions
- Dental Care
- Vision Care
- Other Prescription Drugs
ALL OF THE ABOVE
- Pre-existing conditions (or probationary period)
- Intentionally self-inflicted injuries (suicide)
- War or any act of war
- Elective cosmetic surgery
- Expenses payable to Workers' Comp
- Military service and overseas residence
- Coverage payable under government plan
- Commission or attempt of a felony
Investor Originated Life Insurance (IOLI)
Investors, producers, or brokers with absolutely no personal or business
connection with a person, who induce a purchase of a life insurance policy with
the sole intent of selling that policy to institutional investors for an amount less
than the death benefit, but greater than the policy's cash value. Essentially, the
insured is "selling" their mortality.
What must the policyowner provide to the insurer for validation that a loss
has occurred?
Proof of Loss
Recurrent Disability
A policy provision that specifies the period of time during which the recurrence
of an injury or illness will be considered a continuation of a prior period of
disability.
Misrepresentation
A false statement or lie that can render the contract void.
- Dividend are guaranteed
, Which Unfair Trade Practice involves an agent telling a prospective client
that a policy's dividends are guaranteed?
Misrepresentation
Which of the following does social security not provide benefits for
Dismemberment
An applicant who pays the initial premium at the time of application is
typically given a(n)
Conditional Receipt
Company XYZ offers a group Term Life insurance plan to its employees.
What does each employee covered under this plan receive?
Certificate of Insurance
K is the insured and P is the sole beneficiary on a life insurance policy.
Both are involved in a fatal accident where K dies before P. Under the
Common Disaster provision, which of these statements is true?
Daughter
coercion
the practice of persuading someone to do something by using force or threats
to buy insurance
risk rentention group
A group-owned liability insurer which assumes and spread product liability
and other forms of commercial liability risks among its members
life insurance
insurance paid to named beneficiaries when the insured person dies
health insurance
Insurance that covers medical illness or injury.
Stock Companies
LIFE AND ANNUITY TESTBOOK TERMS VAR
CONTRACTS 100% VERIFIED.
Reinsurers and Retention Limits
Reinsurers are a specialized branch of the insurance industry because they
insure insurers. Reinsurance is an arrangement by which an insurance company
transfers a portion of an assumed risk to another insurer. Usually, reinsurance
occurs to limit the loss any one insurer would face should a very large claim
become payable. Another reason for reinsurance is to enable a company to
meet specific objectives, such as favorable underwriting or mortality results.
The company transferring the risk is called the ceding company; the company
assuming the risk is the reinsurer. The portion of the risk that the ceding insurer
retains is called the net retention (or net line). A typical reinsurance contract
between two insurance companies is called treaty reinsurance, which involves
an automatic sharing of the risks assumed. In a reinsurance agreement, the
insurance company that transfers its loss exposure to another insurer is called
the primary insurer.
The net single premium for a life insurance policy is
A premium calculation used to calculate an insurers policy reserves factoring in
interest and mortality.
Surrender Cost Index
measures the cost of life insurance if you surrender the policy at the end of
some time period, such as 10 or 20 years, and takes compound interest into
account
Improper Annuity
Pay Restitution
COB
,coordination of benefits
Rebating is an unfair trade practice and is regulated by law. All of the
following would be considered to be rebating EXCEPT
Arcturial Class
fraud
A deliberate deception intended to secure an unfair or unlawful gain
Variable Whole Life Insurance
was created to help offset the effects of inflation on death benefits. It's
permanent life insurance with many of the same characteristics of traditional
whole life insurance. The main difference is the manner in which the policy's
values are invested. With traditional whole life, these values are kept in the
insurer's general accounts and invested in conservative investments selected by
the insurer to match its contractual guarantees and liabilities. With variable
life insurance policies, the policy values are invested in the insurer's separate
accounts which house common stock, bond, money market, and other securities
investment options. Values held in these separate accounts are invested in
riskier, but potentially higher yielding, assets than those held in the general
account. The basic characteristics of a variable life policy are: fixed premiums,
a guaranteed minimum death benefit which fluctuates over the minimum, and
cash values which fluctuate and are not guaranteed.
Variable Whole Life Insurance can be described as
Variable Whole Life Insurance is both an insurance and securities product.
Variable Whole Life
Offsets the effects of inflation on death benefits.
- Fixed Premiums
- Guaranteed Minimum Death Benefit which fluctuates
- Cash values which fluctuate and not guaranteed
Common Exclusions from Coverage
,Exclusions
- Dental Care
- Vision Care
- Other Prescription Drugs
ALL OF THE ABOVE
- Pre-existing conditions (or probationary period)
- Intentionally self-inflicted injuries (suicide)
- War or any act of war
- Elective cosmetic surgery
- Expenses payable to Workers' Comp
- Military service and overseas residence
- Coverage payable under government plan
- Commission or attempt of a felony
Investor Originated Life Insurance (IOLI)
Investors, producers, or brokers with absolutely no personal or business
connection with a person, who induce a purchase of a life insurance policy with
the sole intent of selling that policy to institutional investors for an amount less
than the death benefit, but greater than the policy's cash value. Essentially, the
insured is "selling" their mortality.
What must the policyowner provide to the insurer for validation that a loss
has occurred?
Proof of Loss
Recurrent Disability
A policy provision that specifies the period of time during which the recurrence
of an injury or illness will be considered a continuation of a prior period of
disability.
Misrepresentation
A false statement or lie that can render the contract void.
- Dividend are guaranteed
, Which Unfair Trade Practice involves an agent telling a prospective client
that a policy's dividends are guaranteed?
Misrepresentation
Which of the following does social security not provide benefits for
Dismemberment
An applicant who pays the initial premium at the time of application is
typically given a(n)
Conditional Receipt
Company XYZ offers a group Term Life insurance plan to its employees.
What does each employee covered under this plan receive?
Certificate of Insurance
K is the insured and P is the sole beneficiary on a life insurance policy.
Both are involved in a fatal accident where K dies before P. Under the
Common Disaster provision, which of these statements is true?
Daughter
coercion
the practice of persuading someone to do something by using force or threats
to buy insurance
risk rentention group
A group-owned liability insurer which assumes and spread product liability
and other forms of commercial liability risks among its members
life insurance
insurance paid to named beneficiaries when the insured person dies
health insurance
Insurance that covers medical illness or injury.
Stock Companies
