Exam (elaborations)
2024 INDIANA LIFE & HEALTH INSURANCE EXAM WITH CORRECT ANSWERS
- Course
- Institution
2024 INDIANA LIFE & HEALTH INSURANCE EXAM WITH CORRECT ANSWERS
[Show more]
Content preview
2024 INDIANA LIFE & HEALTHINSURANCE EXAM WITH CORRECT
ANSWERS
Absolute Assignment - CORRECT ANSWERS-transferring all rights of
ownership to another person or entity; new policy owner doesn't need to
have insurable interest in the insured
Collateral Assignment - CORRECT ANSWERS-transfer of partial rights to
another person; usually done to secure a loan or some other transaction;
partial and temporary assignment of some of the policy rights; once
debt/loan repaid, assigned rights returned to the policy owner
Participating Insurance Policy - CORRECT ANSWERS-may pay dividends to
the policyowner
Material Misrepresentation - CORRECT ANSWERS-misstatement to a question
asked in the application process; death benefit claim will likely be denied
Law of Large Numbers - CORRECT ANSWERS-the larger a group becomes, the
easier it is to predict losses; used to predict certain types of losses and set
appropriate premiums
Level Benefit Payment Amount - CORRECT ANSWERS-amount of each
payment received from the annuity during the annuity period
General Account - CORRECT ANSWERS-comprised mostly of conservative
investments like bonds; these investments are secure enough to allow the
insurance company to guarantee a specified rate of interest, as well as
assure the future income payments that the annuity will provide; fixed
annuity premiums are deposited into this
Equity Indexed Annuities - CORRECT ANSWERS-fixed annuities that invest on
a relatively aggressive basis; have guaranteed minimum interest rate;
interest rate often tied to familiar index such as the S&P 500; generally,
insurance companies reserve the initial returns for themselves but pay the
excess to the annuitant
Variable Annuity - CORRECT ANSWERS-serves as a hedge against inflation;
annuitant may receive different rates of return on the funds that are paid
, into the annuity; 3 main characteristics: underlying investment (separate
account), interest rate, and license requirements
Suitability - CORRECT ANSWERS-how well a recommended product will meet
the applicant's needs an resources
Exclusion Ratio (Annuity) - CORRECT ANSWERS-total investment divided by
total amount expected to be paid out over the life of the contract
Accumulation Phase - CORRECT ANSWERS-period after an annuity has been
purchased but before distributions begin
Provisions - CORRECT ANSWERS-stipulate the rights and obligations of an
insurance contract and are fairly universal from one policy to the next
Riders - CORRECT ANSWERS-modify provisions that already exist; used to
increase or decrease policy benefits and premiums
Options - CORRECT ANSWERS-offer insurers and insureds ways to invest or
distribute a sum of money available in a life policy
Substandard Risk - CORRECT ANSWERS-results in higher premium
Standard Risk - CORRECT ANSWERS-results in standard premium
Preferred Risk - CORRECT ANSWERS-results in lower premium
Expense Loading - CORRECT ANSWERS-combined with premiums to spread
the operating costs of a business to all insureds
Net Premium - CORRECT ANSWERS-premiums without expense loading
Concealment - CORRECT ANSWERS-occurs when a person withholds a
material fact that is crucial to making a decision; in insurance, this involves
withholding information that would be crucial to underwriting decisions
Warranty - CORRECT ANSWERS-a statement guaranteed to be true
Representation - CORRECT ANSWERS-a statement true to the best of an
applicant's knowledge
3 Basic Types of Term Life Insurance - CORRECT ANSWERS-level, increasing,
and decreasing
Level Term - CORRECT ANSWERS-death benefit doesn't change throughout
the life of the policy
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Elitaa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72349 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now