Deferred Annuity
An annuity in which the income payments begin sometime after one year from the date of purchase.deferred annuities can be funded with a
... [Show More] single lump sum payment so it is referred to as a single premium differed annuities.
Human life values approach
Calculates an individual's life value by looking at the insureds future wages,inflation,the number of years to retirement,and the time value of money.
What time must the producer present the applicant with a notice regarding replacement of life insurance
Producers must present to the applicant a notice regarding replacement that is signed by both the applicant and the producer. A copy must be left with the applicant.
Risk
Is the uncertainty or chance of a loss occurring.
MIB (medical information bureau
MIB is a non profit trade organization which receives adverse medical information from insurance companies and maintains confidential medical impairment information on individuals
Perjury
If a person signs a fraudulent claim form,that person may be found guilty
Universal life
policy has two components: an insurance component and a cash account. The insurance component of a universal life policy is always annually renewable term insurance .
The right to a full refund of premiums for insureds age 60 or older
The right of recission for a full refund must last for at least 30 days
The premium modes
Is the frequency of premium payment.
Concealment
Is the withholding of information by the applicant that will result in an imprecise underwriting decision. may void the policy
Tax sheltered annuity (tsa)
Is a qualified plan available to employees of certain nonprofit organizations of the internal revenue code for example employees of public school systems.
Intent of replacement regulations
Are written to protect the consumers of California,not the insurance company or its producers.
Reinstatement
Provision allows a lapsed policy to be put back in force. The maximum time limit for reinstatement is usually 3 years after the policy has lapsed.
Alien insurer
An insurer incorporated in a foreign country.
Mortality
Means the rate of death.mortalilty tables used by insurers ,indicate the number of individuals within a specified group starting at a certain age.
Group life insurance
the group must be created for a purpose other than to obtain group insurance.
Conditional receipt
The applicant is covered by the insurance company as of the date of the application if the applicant is insurable at the classification for which the policy was applied.
Law of large numbers
states that the larger the number of people with a similar exposure to loss,the more predictable actual losses will be.
Insolvent
If an insurer's legal reserve funds are less than the minimum required by law, the company is impaired in its ability to pay claims
Decreasing term coverage
Is commonly purchased to insure the payment of a mortgage or other debts.
Insurable interest
In life insurance, must exist between the policy owner and the insured at the time of applications; however, once a life insurance policy has been issued, the insurer must pay the policy benefit, Whether or not exists. [Show Less]