Definition 1 of 218
Covers on and off the job injuies
Occupational Covereage
Representation
Incomplete Application
Government Insurance Offering
Term 2 of 218
Tax: Dividends are.. (Stock Company)
eligible for tax credits
subject to capital gains tax
exempt from income tax
taxable as ordinary income. (but NEVER capital gains)
Definition 3 of 218
- If not repaid, will have a permanent effect on cash value accumulation and death benefit
- annual interest on a loan is added to the loan as it accrues
- if the outstanding policy loan + interest exceeds the cash value of the policy, the policy will
lapse
Deferred Compensation Plan
Policy Loans
Tax: Gifting Life Insurance Policy to a charity
Tax: Individual Life Policy Premiums
,Term 4 of 218
Giving up the right to obtain information requires...
a waiver
a warranty
a transfer
a representation
Definition 5 of 218
- be funded by annuities (deferred)
- may NOT be funded by whole life policies
- may NOT be bought by children unless they have an earned income
IRAs may...
Pure Risk
Variable Products
Consideration Clause
Definition 6 of 218
- large settlement or lottery payouts
- retirement purposes or other long-term investments (keep customers from outliving their
savings)
Personal Uses of Annuities
Incomplete Application
Reduced Paid Up Non-forfeiture
Legal Elements of Contract
,Term 7 of 218
Level Term Policy
The premium and the amount of coverage are level throughout the term
Premium and coverage amount change annually
Coverage amount decreases while premium remains the same
Premium increases as the coverage amount decreases
Term 8 of 218
Certifcate of Authority
notify the commmisoner within 15 days by mail and the producer's last known address
has their home office in another state
issued by the Commissioner to transact in this state
at least 6 tax credits in the past 13 periods
Definition 9 of 218
authority of producer that is written in his or her contract
change of insured rider
express authority of producer
waiver of premium rider
principle of indemnity
, Definition 10 of 218
issues to a substandard risk with dangerous policies or health problems
substandard policy
juvenile policy
rated policy
increasing term policy
Term 11 of 218
1-Year Dividend Option
On a participating policy, dividend may be used to buy term life insurance for 1 year to
increase the death benefit
Standard provisions, who has the right to change the beneficiary, who can take a loan, and
who can take cash surrender
Added to a whole life policy, will have level coverage from the whole life policy, and
increasing coverage from the rider
If a prent paying the premium on a child's life insurance policy dies or becomes disabled,
waives the premium
Definition 12 of 218
tax-deferred 1035 exchange
Surrendering an annuity for cash
Surrendering a Life Insurance Policy for cash to buy a new life insurance policy from a
different insurer
Decreasing Term Policy
Juvenile life insurance policy
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