Washington Life/Health Insurance Exam
... - ANS-Annuity settlement option
"add on" programs
that are reasonably priced because of volume discounts - ANS-voluntary plans
(AKA Mortgage protection insurance) Face value decreases over time. Commonly used to pay
off mortgage debt. - ANS-Decreasing term
(State to state program)
Injured on the Job, covers med expenses
Die on the job Benefit paid to spouse
Disabled on job, disabilities income payment - ANS-Workers Comp
(Worked for 10 years) payroll taxes levied on employees, employers,
and the self-employed.
Retirement Benefits;
Disability Income Benefits; and
Survivor Benefits. - ANS-FICA Fully Insured
• after the first 2 years,
• an honest mistake is incontestable by the Insurer;
• fraud is incontestable by Life Insurers and
Group Health Insurers; but
• fraud remains contestable forever by Individual Health
Insurers - ANS-Contestable clause
$255 funeral help
% of PIA paid to survivor (After 10 years) - ANS-Survivor benefits
10 days to hang onto the policy and void it at any time for any reason. Begins at policy
reception, not issue - ANS-Free-look clause (return/exchange provision)
31 day grace period begins when you fail to make the premium by the due date - ANS-Grace
period
31 day grace period on premium payments. The company may charge interest on late
payments - ANS-Grace period clause
a booklet explaining the coverage and
,an identification card - ANS-Certificate of Insurance
A clause, or part of the contract - ANS-Provision
A collection of policies under on policy - ANS-Family policy
A combination of term, cash value account and coverage to 100. Premium payments go into an
interest sensitive cash value account. The insurance company deducts a monthly charge to
cover the term payment. The remaining cash value stays in the account and gains a guaranteed
minimum or greater rate. The policy owner can pay higher premiums for faster growth. The cash
value can fund premiums during times of non-payment. - ANS-Universal life
A company owned by its policy holders where the profits are distributed among policy holders -
ANS-participating companies
A Contingent (second or
tertiary) Beneficiary is an individual who will receive the death
benefit if the primary beneficiary is no longer living at the time
of the Insured's death - ANS-Contingent Secondary Beneficiary
A continuation privilege allows adult children up to the limiting age to be covered as long as they
are full-time students.
Adult disabled children can be covered their whole lives as long as they are incapable of
supporting themselves and dependent upon the parents. An adult standard premium may be
charged at age 18. Proof of incapacity or dependency is necessary within 31 days of reaching
their 18th birthday. Annual proof of handicap may be required to continue dependent coverage. -
ANS-Adult dependent children
a contract is to be
valid, its purpose must be legal - ANS-legal purpose
A deductible that shows up in the middle of comprehensive major medical coverage after the
basic plans benefits run out and the major medical policy kicks in - ANS-Integrated/corridor
deductable
a Group Insurance plan in which
the entire cost of coverage for all eligible group members is
covered by the organizing entity, usually the employer - ANS-non-contributory plan
a guarantee that government
would never again allow workers (and their families) to become
destitute - ANS-Social Security act
, A health policy that excludes payment for specific preexisting conditions - ANS-Exclusion
rider/Exclusion Waiver/Impairment Rider
A hybrid of permanent and temporary coverage - ANS-Combination Policy
a lie about a material fact - ANS-Misrepresentation
A life policy that builds up cash value - ANS-Permanent Policy
A list of medical procedures and how much the company will pay for each. - ANS-Schedule of
Indemnities
A measure that limits the maximum amount for which the insurance can be responsible for in a
stated time period. - ANS-Annual stop-loss limit
a month in which all employees who have become eligible to enroll can - ANS-open enrollment
period
A person who tracks the lifespan and chance of illness or accident based on specific factors -
ANS-actuary
A producer must have reasons to believe that the policy he/she sold to someone is suitable
Human life approach: maintain standard of living
Needs approach: what client actually needs - ANS-Life insurance suitability
A rider that allows the beneficiary to receive, upon the insureds demise, the death benefit and
the cash value. Usually not extended beyond age 65. - ANS-Return of cash value term rider
A rider that would return the premium paid into the policy. This rider dramatically adds to the
monthly payment due to the company each month, but is not considered part of the actual
premium. - ANS-Return of Premium Term Rider
A statement made on an application for insurance that the applicant gaurentees to be true (Not
allowed in life and health insurance forms) - ANS-Warranty
Accidental death and dismemberment (Add-ons), Accidental loss of life, limb or vision, pays
benefits in a lump sum only when medical problems are direct result of an accident (not
sickness), death within 90 days of accident or policy won't pay, if accident is triggered by illness
- no payout, value policy not indemnity policy, at least one hand, one foot or vision in one eye
will pay capital sum (100%), if two hands, two feet or vision in both eyes, policy will pay full
amount, when attached to life or health policy, the rider pays over and above overriding policy -
ANS-AD&D Rider
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