Alabama life stuvia - Study guides, Class notes & Summaries

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? a) All plans must include basic benefits A-N. b) Coverage options and conditions are developed for average individuals. c) All providers will have the same coverage options and conditions for each plan. d) Coverage options and conditions comply with the law, but will vary from provider to provider. - ANSWERSC Which of the following is true regarding a single life settlement option? a) Payme...

Agent/Producer - ANSWERSA person who acts for another person or entity with regard to contractual arrangements with third parties; a legal representative of an insurance company. Agent/Agency Contract - ANSWERSa contract that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, outlining the duties and responsibilities to the principal. If the agent is in violation of the agency contract (or agreement), he or she may be held persona...

a predetermined limit. - ANSWERSInsurance is a method risk is transferred to an insurer for consideration up to 1. spouses in each other 2. parents in their children 3. creditors in their debtors - ANSWERSWhich of the following would be considered proper establishment of insurable interest in the life insurance area? It is called the mortality rate - ANSWERSWhich of the following statements about the average number of people who die each year is true? Equal value is not necessarily gi...

Term Insurance - ANSWERSTemporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ - ANSWERSpure death protection Term insurance provides the greatest amount of coverage for the _______________ - ANSWERSlowest premium Term insurance has no ____________ - ANSWERScash value Three basic types of term coverage available, based on how the face amount (death benefit) chan...

Which of the following would be considered a speculative risk? - ANSWERSThe possibility the painting you bought might be a long-lost masterpiece A speculative risk is one in which there is a chance for either loss or gain. Example: Gambling, Casino's, Lottery, etc. All of the other choices describe pure risk, where there is no chance of gain, only a chance of loss exists. Which is the proper term for a company owned by its policy owners? - ANSWERSA mutual insurance company A producer w...

Which clause allows the insured to change an existing policy to any other policy of any type as long as the new policy has a higher premium, without any proof of insurability? - ANSWERSPrivilege of change clause The extended term nonforfeiture option provides: - ANSWERSPaid-up term coverage equal to that of the original policy With a collateral assignment of a life policy to a creditor: - ANSWERSYou assign a partial amount of the policy values to the creditor An accounting measure used ...

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Agent/Producer - ANSWERSA person who acts for another person or entity with regard to contractual arrangements with third parties; a legal representative of an insurance company. Agent/Agency Contract - ANSWERSa contract that is held between an insurer and an agent/producer, containing the expressed authority given to the agent/producer, outlining the duties and responsibilities to the principal. If the agent is in violation of the agency contract (or agreement), he or she may be held persona...

In reference to the standard Medicare Supplement benefits plans, what does the term standard mean? a) All plans must include basic benefits A-N. b) Coverage options and conditions are developed for average individuals. c) All providers will have the same coverage options and conditions for each plan. d) Coverage options and conditions comply with the law, but will vary from provider to provider. - ANSWERSC Which of the following is true regarding a single life settlement option? a) Payme...

Term Insurance - ANSWERSTemporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ - ANSWERSpure death protection Term insurance provides the greatest amount of coverage for the _______________ - ANSWERSlowest premium Term insurance has no ____________ - ANSWERScash value Three basic types of term coverage available, based on how the face amount (death benefit) chan...