Untitled

• 300 practice questions are included in this resource.

Key Insurance Concepts - Questions and Answers

• An actuary is a mathematician who analyzes and prices insurance policies based on the probability of specific events.
• A tertiary beneficiary will receive insurance proceeds if both the primary and secondary beneficiaries are deceased.
• Adjustable life insurance policies provide greater flexibility compared to other plans, allowing changes to premiums and face value.
• A "free-look" provision permits a policyholder to return the policy within a certain period for a full refund if not satisfied.
• Alternative coverage options, such as a short-term Accidental Death and Dismemberment policy, can provide coverage when a life insurance policy has a dangerous policy exclusion.
• An employee can continue group health insurance coverage, subject to the health insurer's approval, while on approved leave due to a work injury that is being compensated through worker's compensation.
• Unearned income, such as interest or investment income, continues even when a person is unable to work.
• Programming is a method of calculating the necessary amount of disability insurance for an individual.
• A "free-look’’ provision allows a refund if not satisfied within a set period.
• A spouse term insurance rider adds term life insurance coverage to a whole life insurance policy for a spouse.
• COBRA (Consolidated Omnibus Budget Reconciliation Act) allows employees to continue their group health insurance coverage after leaving employment under certain conditions.
• With a 5-year graded vesting schedule, 20% vests each year, hence, after three years, 60% would be vested.
• STOLI (Stranger-Originated Life Insurance) policies are primarily investment vehicles lacking insurable interest between the insured and policy owner.
• Sending policy documents to applicants is not a common underwriting position for a health insurance company: this is typically the responsibility of the agent or broker.
• A rider is an add-on to an insurance policy that modifies or adds coverage or terms.
• A Certificate of Insurance (COI) verifies insurance coverage, detailing coverage type and terms.
• If Lechter is becomes disabled before age 22 and is at least 18 years old Lechter can receive Social Security benefits as a dependent child.
• Health insurance premiums shouldn't be based on gender; but rather age, tobacco use, and weight
• A viatical settlement involves the sale of a life insurance policy to a third party for less than its death benefit and more than its cash surrender value.
• Medicaid is a joint federal-state program providing healthcare to low-income individuals, administered by each state within federal guidelines.
• Underwriters are not party to a life insurance contract; while the owner and insured are typically the parties involved/ concerned
• Life insurance policies can provide living benefits.
• Significant life events, such as the birth of a child, should prompt a review of life insurance coverage to ensure adequate support for the individual's dependents
• A grace period lets policyholders pay the overdue premium within a certain timeframe, typically 30 days, without the policy lapsing.
• Terms of life insurance are most suitable for covering Jack’s temporary financial obligation. This ensures Lyn can pay off the home if Jack were to pass away during the term.
• Universal life insurance is a permanent coverage offering for death benefit and a cash value component.
• Group Life Insurance is an employer or membership benefit package, provided employees or member of a group at reduced cost.
• Term life insurance gives financial protection only if the insured dies during a specified term.
• Insurers evaluate health, occupation and hobbies to determine whether or not to provide coverage and premium rates.
• Underwriting in ife insurance means evaluating risk of an individual to determine insurability and premium rates.
• ‘Utmost Good Faith’ means that the insured/insurer should disclose all relevant information.
• Owner must have an insurable interest to ensure legitimate risk is transferred and to prevent gambling on human life.
• Law of agency governs the relationship between the principal and the agent, facilitating a legal relationship with a third party through the agent's actions.
• Life insurance needs analysis should take into account the policyholder's age, lifestyle, hobbies, number of dependents, and future financial obligations
• Change in job title is not a life-changing event, life events like birth of a child, divorce, and marriage are
• Recommended that permanent life insurance is used so coverage last when term life is used it could expire before the insurance is needed.
• Cover estate taxes and final expenses is the way life insurance benefits beneficiaries after death.
• Life insurance can ensure business continuity by providing funds to cover operational costs, pay debts and even buy out deceased partners’ share.
• Corporate life insurance can be made for new hires, debts and employees stock.
• Life insurance policies always have death benefit and cash value as components.
• Death benefit is the most common life insurance component.
• Reduced paid-up insurance and cash surrender value allow policyholders to retain some value with premium payments preventing all loss of benefits. Cosmetic surgery is a common exclusion mostly, it is not life saving.
• Policy deductible and maximum out-of-pocket amount are parts of a good insurance policy.
• Offering/accepting inducements in exchange for business is against the law, and known as rebating.
• Thoroughly review the policy with the client to ensure is understanding and accurate is the crucial part of the delivery process.
• “Twisting" means persuading a client to lapse an existing policy.
• Copayment meaning some money person needs to pay but it is fixed amount.
• Higher deductibles mean lower premiums.
• In a long-term care policy, the 'deductible' is called an elimination period.
• Exact procedures are shown in a health insurance claim by CPT codes.
• Indemnity plans provide a fixed benefit and reimbursement plans pay the person back.
• Owner needs to have insurable interest to issue is insurance.
• Law of agency is the relationships set to give 3rd parties right to act on others.
• Must think about how old the policyholder is all around.
• Life events must be thought about a child.
• If no insurance permanent insurance is recommended.
• Estate plan is taxes and final expenses when all dies.
• Operation cost or even debts this insures the continuity.
• Corporate Life insurance can be need of corporation debts to have and train new employees. Death and cash if you want life long insurance.
• Benefit is for the death.
• Beneficiary knows where to receive death benefit.
• If company does the good steps there will be no issues.
• Living Benefit riders make it so you access proceed before death if person wants too.
• The differences depend on if they dying of cancer, or not in other situation.
• Living benefit is used by lump sum or anything.
• If one has LTC what is an exception =own occupation. Cosmetic surgery is not included.
• Out of pocket has to be what they put in.
• Giving gifts and vacation can be rebutting.
• Agents review to have then understand it all because the client is getting all to understand.
• Twisting is convincing to sell them new ones.
• Copayment is the amount insured person pays out for it. Higher deductibles means there less premiums.
• Elimination period is when deductibles are gone to cover.
• CPT codes is a way to get insurance done.
• Indemnity mean fixed and reimbursement means to take out to pay. Owner needs one for each person.
• Law of Agency with out people helps facilitate through the third persons actions. lifestyle and hobbies is what impacts them. Change title not recommended but rather child divorce and marriage.

More notes to come, this resources only got to 15 %