Louisiana Life, Health, Accident or Sickness Insurance Section 103 Exam
Transacting Insurance
SNET : solicitation, negotiation, execution, transacting
Basic Illustration
Has both guaranteed and nonguaranteed elements
Supplemental illustration
Nonguaranteed elements
Is there a life/health broker?
No
Gramm-Leach-Bliley Act
Requires notices of info privacy be given out annually, also gives insureds the right to
opt out
Industrial Insurance
Face amounts of $2,000 and is sold to low income workers. It's a burial coverage now
called home service
When does a permanent policy endow?
Age 100
What do annuities do?
They systematically liquidate or distribute accumulated funds
All immediate annuities must be..
Single premium
Accumulation period
Money is being paid into the annuity
Annuitization
Payout period
What happens if someone withdrawals from their annuity before 56.5
10% penalty
Variable products
Based on units, money goes into separate accounts, hedge against inflation, and the
client has the risk tolerance
Where should the annuity owner's money be invested into for the first 30 days?
Money market
, Entire contract consists of
Application, riders, and any modifications
When do life insurers notify other insurer for replacements
3 days
Whose signature is required on an app?
Policyowner, applicant, insured, and agent
Is life or health more complex?
Health because more than one claim can be paid
Exposure unit in life
Per $1,000
Exposure unit in disability
Per $100
Exposure unit in health
Per $1
What happens to the riders when a policy goes into nonforfeiture
Riders fall off
Components of life insurance
Mortality, expense, and interest
Components of health insurance
Morbidity, expense, and interest
Accidental death
Death benefit doubles if insured dies within 90 days of the accident with the accident
being the cause of death
Guaranteed minimum income benefits
Guarantees payout will be the greater of the account value or minimum payout base
Guaranteed minimum withdrawal benefit
Guarantees investors can withdraw a guaranteed fixed % of the annuity premium
Guaranteed payout annuity floors
Guarantees no payment will be less than 80-100% of the first payment
Guaranteed account value
Locks in any gains at the end of each quarter
Transacting Insurance
SNET : solicitation, negotiation, execution, transacting
Basic Illustration
Has both guaranteed and nonguaranteed elements
Supplemental illustration
Nonguaranteed elements
Is there a life/health broker?
No
Gramm-Leach-Bliley Act
Requires notices of info privacy be given out annually, also gives insureds the right to
opt out
Industrial Insurance
Face amounts of $2,000 and is sold to low income workers. It's a burial coverage now
called home service
When does a permanent policy endow?
Age 100
What do annuities do?
They systematically liquidate or distribute accumulated funds
All immediate annuities must be..
Single premium
Accumulation period
Money is being paid into the annuity
Annuitization
Payout period
What happens if someone withdrawals from their annuity before 56.5
10% penalty
Variable products
Based on units, money goes into separate accounts, hedge against inflation, and the
client has the risk tolerance
Where should the annuity owner's money be invested into for the first 30 days?
Money market
, Entire contract consists of
Application, riders, and any modifications
When do life insurers notify other insurer for replacements
3 days
Whose signature is required on an app?
Policyowner, applicant, insured, and agent
Is life or health more complex?
Health because more than one claim can be paid
Exposure unit in life
Per $1,000
Exposure unit in disability
Per $100
Exposure unit in health
Per $1
What happens to the riders when a policy goes into nonforfeiture
Riders fall off
Components of life insurance
Mortality, expense, and interest
Components of health insurance
Morbidity, expense, and interest
Accidental death
Death benefit doubles if insured dies within 90 days of the accident with the accident
being the cause of death
Guaranteed minimum income benefits
Guarantees payout will be the greater of the account value or minimum payout base
Guaranteed minimum withdrawal benefit
Guarantees investors can withdraw a guaranteed fixed % of the annuity premium
Guaranteed payout annuity floors
Guarantees no payment will be less than 80-100% of the first payment
Guaranteed account value
Locks in any gains at the end of each quarter
