Insurance
(General concept) - Answer - transfers the risk of loss from an individual to an insurer
- based on the principle of indemnity
- based on the
... [Show More] principle of risk (risk pooling)
insurable interest
(General Concept) - Answer - must exist at the time of the application
- insuring one's own life, family member, or a business partner
Solicitation and sales presentation - Answer - illustration- presentation of
nonguaranteed elements
- buyer's guide is generic information about life polices which must be provided at the
time of application
- policy summary is a description of features and benefits of the policy being issued and
must be provided when the policy is delivered.
Underwriting (Field underwriting (by agent) - Answer - application completed and signed
- agent's report: agent's observation about the application that can assist in underwriting
-premiums with application and conditional receipts
underwriting ( company underwriting) - Answer - multiple sources of information:
applications, consumer reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - Answer - Fair Credit Reporting Act: protect
consumers against circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
Premium Determination - Answer - 3 key Factors for life insurance: mortality, interest,
and expense
- Mode: the more frequently premium is paid, the higher the premium
Policy Issue and Delivery - Answer Effective date of coverage - if the premium is not
paid with the application, the agent must obtain the premium and a statement of
continued good health at the time of the policy delivery
Agent/ Producer - Answer a legal representative of an insurance company; the
classification of producers usually includes agents and brokers' agents are the agents of
the insurer
Applicant of proposed insured - Answer a person applying for insurance
Beneficiary - Answer a person who receives the benefits of an insurance policy
Broker - Answer an insurance producer who is not appointed by an insurance company
and who represents the client
Death benefits - Answer the amount paid upon death of the insured in a life insurance
policy
Estate - Answer a person's net worth [Show Less]