Alabama life stuvia - Study guides, Class notes & Summaries

Agent/Producer - ANSWERSA person who acts for another person or entity with regard to contractual arrangements with third parties; a legal representative of an insurance company. Agent/Agency Contract - ANSWERSa contract that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, outlining the duties and responsibilities to the principal. If the agent is in violation of the agency contract (or agreement), he or she may be held persona...

Which clause allows the insured to change an existing policy to any other policy of any type as long as the new policy has a higher premium, without any proof of insurability? - ANSWERSPrivilege of change clause The extended term nonforfeiture option provides: - ANSWERSPaid-up term coverage equal to that of the original policy With a collateral assignment of a life policy to a creditor: - ANSWERSYou assign a partial amount of the policy values to the creditor An accounting measure used ...

Which of the following would be considered a speculative risk? - ANSWERSThe possibility the painting you bought might be a long-lost masterpiece A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choices describe pure risk, where there is no chance of gain, only a chance of loss exists. Which is the proper term for a company owned by its policy owners? - ANSWERSA mutual insurance company A producer w...

Term Insurance - ANSWERSTemporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ - ANSWERSpure death protection Term insurance provides the greatest amount of coverage for the _______________ - ANSWERSlowest premium Term insurance has no ____________ - ANSWERScash value Three basic types of term coverage available, based on how the face amount (death benefit) chan...

Agent/Producer - ANSWERSA person who acts for another person or entity with regard to contractual arrangements with third parties; a legal representative of an insurance company. Agent/Agency Contract - ANSWERSa contract that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, outlining the duties and responsibilities to the principal. If the agent is in violation of the agency contract (or agreement), he or she may be held persona...

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? a) All plans must include basic benefits A-N. b) Coverage options and conditions are developed for average individuals. c) All providers will have the same coverage options and conditions for each plan. d) Coverage options and conditions comply with the law, but will vary from provider to provider. - ANSWERSC Which of the following is true regarding a single life settlement option? a) Payme...

Term Insurance - ANSWERSTemporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ - ANSWERSpure death protection Term insurance provides the greatest amount of coverage for the _______________ - ANSWERSlowest premium Term insurance has no ____________ - ANSWERScash value Three basic types of term coverage available, based on how the face amount (death benefit) chan...

Which of the following would be considered a speculative risk? - ANSWERSThe possibility the painting you bought might be a long-lost masterpiece A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choices describe pure risk, where there is no chance of gain, only a chance of loss exists. Which is the proper term for a company owned by its policy owners? - ANSWERSA mutual insurance company A producer w...

if lousie allows her whole life policy to lapse which nonforfeiture option shoild she elect to obtain the most life insurance protection? - ANSWERSExtended term option If administrative action is taken against you, or you are criminally prosecuted in another jurisdiction, you have how long to submit a notice to the Alabama commissioner? - ANSWERS30 days How can 'key employee' disability income insurance purchased by business be used by the business - ANSWERSBoth: temporary replace the ke...

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? a) All plans must include basic benefits A-N. b) Coverage options and conditions are developed for average individuals. c) All providers will have the same coverage options and conditions for each plan. d) Coverage options and conditions comply with the law, but will vary from provider to provider. - ANSWERSC Which of the following is true regarding a single life settlement option? a) Payme...