"non-par" - policy makers don't get dividends (because they aren't owners)
"par" - policy makers get dividends (because they are owners)
10 year endowment (homeservice) - whole life policy with a small face value and a short maturity
date; once policy matures, owner will receive the face value
...
NWM Exam
"non-par" - policy makers don't get dividends (because they aren't owners)
"par" - policy makers get dividends (because they are owners)
10 year endowment (homeservice) - whole life policy with a small face value and a short maturity
date; once policy matures, owner will receive the face value
1035 exchange - In accordance with section 1035 of the Internal Revenue Code certain exchanges
of life insurance policies and annuities may occur in a nontaxable exchange
- When a cash value life insurance policy is exchanged for another cash value life insurance policy or an
annuity for an annuity there will be no income tax on these transactions
12 mandatory provisions for all health insurance contracts - 1. entire contract
2. time limit on certain defenses (incontestable)
3. grace period
4. reinstatement
5. notice of claim
6. claim forms
7. proof of loss
8. time payment of claims
9. payment of claims
10. physical examination and autopsy
11. legal actions
12. change of beneficiary
,1945 McCarran and Ferguson Act - while federal government has the authority to regulate the
insurance industry, it would not exercise that right if the insurance industry was run effectively and
adequately by the states
1970 Fair Credit Reporting Act - provides individuals privacy protection and fair and accurate
credit reporting
- insurance companies are required to notify applicants of the credit check and allow access on anything
found
2 common major medical policies - supplemental major medical policies & comprehensive major
medical policies
3 basic types of whole life insurance - straight, limited-pay, single premium
3 categories of accepted applicants - - preferred
- standard
- substandard
3 categories of health coverage - 1. medical expense insurance
2. disability income insurance
3. accidental death & dismemberment insurance
3 factors to determine premiums - 1. mortality
2. interest
3. expense
3 income periods that most insureds are exposed to are: - - viatical settlements
3 types of term coverage - level, increasing, decreasing
,absolute assignment - transferring all rights of ownership to another person or entity
- permanent and total transfer of all policy rights
- new policy owner doesn't need insurable interest in insured
accidental death and dismemberment insurance (AD&D) - provides beneficiary with lump sum
death benefit in event of accidental death of insured; pays living benefit for dismemberment
accumulation period (pay-in-period) - the period of time over which the annuitant makes
premium payments into annuity; time premiums earn interest on a tax deferred basis
accumulation units - when variable annuity premiums are invested and begin to grow
adhesion - "take it or leave it agreements" prepared by insurance company
agent - licensed insurance producer who's been appointed to represent a company
agent ethics - info must be legible and a copy must be given to applicant
agent report - provides agent's personal observations concerning applicant
- agent can be considered most vital source of info
- not part of contract, but part of application
agent's authority - authority agents have to perform acts on behalf of the insurance company
agents may not submit application without: - - insurance company name & agent license number
on first page
, aleatory - exchange of value is not equal
annuitant - person who receives the payments from annuity
annuities - stream of income by making a series of payments over a certain period of time
annuity - not life insurance; a way of accumulating money and liquidating an estate
annuity funding - - single, lump-sum payment
- periodic payments in which premiums are paid in installments over a period of time
annuity owner - purchaser of annuity
annuity period (annuitization/liquidation period) - time during which the money accumulated
during accumulation period is converted to income payments to annuitant
- if annuitant dies during accumulation period, beneficiary will receive cash value or total premiums paid
(whichever is greater)
annuity taxes - a portion of each annuity benefit payment is taxable and a portion is not
annuity units - payout phase of variable annuity
apparent authority - appearance/assumption of authority given based on actions or words of
principal
application components - general info, medical info, agent's report
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