Podcast
Questions and Answers
What is a Variable Life?
What is a Variable Life?
Type of life insurance that allows the policyowner to have level premiums and to also choose from a selection of investment options.
What is a qualified profit-sharing plan?
What is a qualified profit-sharing plan?
Allows employees to participate in the profits of the company.
Why must Association Plans that provide health benefits be fully insured?
Why must Association Plans that provide health benefits be fully insured?
Because the Association Plans must be fully insured by an authorized insurer.
Under which act are insurers required to report receipt of cash payments in excess of $10,000?
Under which act are insurers required to report receipt of cash payments in excess of $10,000?
Signup and view all the answers
How many days does an insurance company have to notify someone of a denial of a reinstatement application?
How many days does an insurance company have to notify someone of a denial of a reinstatement application?
Signup and view all the answers
What is the minimum grace period for a life insurance policy to make a premium payment?
What is the minimum grace period for a life insurance policy to make a premium payment?
Signup and view all the answers
Why might a business not buy Key Person Life Insurance?
Why might a business not buy Key Person Life Insurance?
Signup and view all the answers
Why is an applicant's signature required on a life insurance application?
Why is an applicant's signature required on a life insurance application?
Signup and view all the answers
If an employee injures themselves off work premises, what insurance plan is generally considered primary?
If an employee injures themselves off work premises, what insurance plan is generally considered primary?
Signup and view all the answers
What type of group life plan involves employees sharing the cost of insurance?
What type of group life plan involves employees sharing the cost of insurance?
Signup and view all the answers
What is required to change an irrevocable beneficiary?
What is required to change an irrevocable beneficiary?
Signup and view all the answers
What is term coverage that allows the continuation of coverage after the initial policy period called?
What is term coverage that allows the continuation of coverage after the initial policy period called?
Signup and view all the answers
What must agents provide to applicants for Medicare supplement policies?
What must agents provide to applicants for Medicare supplement policies?
Signup and view all the answers
What does the Health Insurance Portability and Accountability Act (HIPAA) protect?
What does the Health Insurance Portability and Accountability Act (HIPAA) protect?
Signup and view all the answers
What rights does the Consolidated Omnibus Budget Reconciliation Act (COBRA) provide to terminated workers?
What rights does the Consolidated Omnibus Budget Reconciliation Act (COBRA) provide to terminated workers?
Signup and view all the answers
How many years are premium payments limited to in a limited pay life policy?
How many years are premium payments limited to in a limited pay life policy?
Signup and view all the answers
In Florida, what are adjustable rates for life policy loans based on?
In Florida, what are adjustable rates for life policy loans based on?
Signup and view all the answers
Are past due premiums waived during a policy's grace period?
Are past due premiums waived during a policy's grace period?
Signup and view all the answers
What must an agent do if they make a mistake while filling out an insurance application?
What must an agent do if they make a mistake while filling out an insurance application?
Signup and view all the answers
A __________ is authorized to assign a life insurance policy as collateral for a loan.
A __________ is authorized to assign a life insurance policy as collateral for a loan.
Signup and view all the answers
How are group life insurance policies generally written?
How are group life insurance policies generally written?
Signup and view all the answers
What must be collected for a non-medical insurance coverage to take effect the same day?
What must be collected for a non-medical insurance coverage to take effect the same day?
Signup and view all the answers
Who is eligible for coverage under a master group health policy?
Who is eligible for coverage under a master group health policy?
Signup and view all the answers
What must an individual be unable to perform to qualify for long-term care health benefits?
What must an individual be unable to perform to qualify for long-term care health benefits?
Signup and view all the answers
What do comprehensive major medical policies usually combine?
What do comprehensive major medical policies usually combine?
Signup and view all the answers
What is the elimination period of an individual disability policy?
What is the elimination period of an individual disability policy?
Signup and view all the answers
What type of policy pays benefits to a policyholder covered under a hospital expense policy?
What type of policy pays benefits to a policyholder covered under a hospital expense policy?
Signup and view all the answers
What is the reason for a business having a business overhead expense disability plan?
What is the reason for a business having a business overhead expense disability plan?
Signup and view all the answers
What does an employer that offers a qualified retirement plan to its employees provide?
What does an employer that offers a qualified retirement plan to its employees provide?
Signup and view all the answers
Study Notes
Life Insurance Overview
- Variable Life allows policyowners to pay level premiums and choose from various investment options.
- A Life Insurance policy's grace period provides a minimum of 30 days for premium payment before risks increase.
- An irrevocable beneficiary cannot be changed without written consent from that beneficiary.
- Renewable term coverage permits continuation after the initial policy period expires.
- Group Life Insurance policies are typically structured as Annually Renewable Term.
Employer and Employee Benefits
- Qualified profit-sharing plans let employees share in company profits, distributing a portion of earnings.
- Employees contributing to their insurance costs participate in a Contributory Group Life Plan.
- Under COBRA, terminated employees have the right to continue group health benefits for themselves and their families.
- Master Group Health policies cover all employees without exclusion for individual health history.
Insurance Regulations and Compliance
- Association Plans providing health benefits require full insurance from an authorized insurer.
- Insurers must report cash payments over $10,000, as mandated by the USA Patriot Act.
- Agents selling Medicare supplement policies must provide applicants with a Sustainability Form.
- HIPAA ensures privacy protections for health information.
Claims and Coverages
- For non-medical insurance to take effect on the same day, both a signed application and the initial premium must be collected.
- If an employee injures themselves off-premises and the employer has over 20 employees, their group health plan is typically the primary coverage.
- To qualify for Long Term Care benefits, individuals must be unable to perform at least 2 activities of Daily Living.
Policies and Procedures
- A policyowner can use their Life Insurance policy as collateral for a loan.
- Past due premiums are not waived during a policy's grace period.
- Errors in application filling must be corrected and initialed by the applicant.
- The elimination period in individual disability policies is the waiting time before benefits are paid.
- Business Overhead Expense Disability Insurance covers fixed business expenses if the owner becomes disabled.
Other Important Concepts
- Comprehensive Major Medical policies merge Major Medical coverage with Basic Hospital/Surgical coverage.
- A limited pay life policy restricts premium payments to a specific number of years.
- Adjustable rates for life policy loans in Florida use the MOODY'S Corporate Index for assessment.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers important terms and definitions related to insurance, including variable life insurance and qualified profit-sharing plans. Perfect for students preparing for exams in insurance and financial services. Test your knowledge and ensure you're well-prepared!
