Hllqp - Study guides, Class notes & Summaries

3 phrases of Against Permanent Loss of income( Income earner dies) - Readjustment period, Dependency Period, Survivor life income needs Capital retention approach - Today's value of income needs + cash needs = insurance needs Two common method for calculate life insurance needs - Capitalization of income approach(lifevalue approach) and Capital retention approach Capitalization of income approach(life- value approach) - Annual Income / interest rate = life value (how much one's earning wo...

Describe the investment quality of a high-yield bond - ANSWER-very low quality. Analogy: Investing in a high-yield bond(junk bond) is a lot like betting on a longshot at the horse races. Your horse is unlikely to win, and you will most likely lose all of your money. However, if your horse somehow wins, you stand to make a huge profit. The same logic holds with junk bonds. An investor may take a chance on such a bond if he believes that the issuer's fortunes will turn around and the bond wil...

The coverage under a group life insurance plan is determined in four different ways based upon an earnings multiple, flat rate, length of service, or some combination thereof. Which method is most common? Answer The most common is the earnings multiple schedule. In this, coverage is equivalent to a multiple of the employee's annual salary. If the overall demographics for a group haves significantly changed, what effect will it likely have on the group premium? Answer The premium will likely ...

HLLQP - SFA 02 FC - Segregated Funds Exam Questions and Answers

What is churning? Answer Churning is an unethical practice whereby an agent advises a client to cancel a policy in order to sell a new one with the same insurer for the sole purpose of earning a commission. Note: This can even include a partial cancellation, such as borrowing against an existing policy to obtain the funds to buy a new policy. What form did the insurance industry create to reduce the odds of churning or twisting? Answer To protect client's from churning or twisting, most ...

Prabdeep is sole sales representative. He has good connections in community that his sister Shatakski does not. Shatakski starts a business with on demand load. If prabdep were to die. Agent reccomends coverage on is brother to cover on demand loan - The bank can recall the loan if the feel business may not be successful without prabdeep who is the KEP EMPLOYER Insurance company reviewing for group adjustable whole life policies. Comapring projections made 10 years ago realized actual inves...

Describe the investment quality of a high-yield bond - ANSWER-very low quality. Analogy: Investing in a high-yield bond(junk bond) is a lot like betting on a longshot at the horse races. Your horse is unlikely to win, and you will most likely lose all of your money. However, if your horse somehow wins, you stand to make a huge profit. The same logic holds with junk bonds. An investor may take a chance on such a bond if he believes that the issuer's fortunes will turn around and the bond wil...

A insurance policy is active when... - What is payment of first premium What is a contract? - a legally binding agreement between two or more parties What is a unilateral contract? - a one-sided agreement where the insured can cancel for any reason but the insurer cannot What is insurer - The insurance company What is insured - The person covered by insurance annuitant death triggers payout What is advisor/agent - The person working for the insurance company What is captive agent - work...