Annuities/ Other Concepts
this type of annuity begins payments immediately after a lump-sum premium is paid
what is immediate annuity?
What is COBRA?
Waives a premium on juvenile policy if a parent dies or becomes disabled.
What is a payor benefit?
Example of this insurance is Pay up to 65 or 20 year pay.
Cash value can build faster. Higher premiums than straight life, paid off faster while have life time coverage.
What is limited pay insurance?
In an annuity, this portion of the payout is taxable as ordinary income
what are the earnings?
Individual Health Insurance policy that offers broadest protection. Coverage provides protection against catastrophic expenses of a serious injury or illness
What is Major Medical Policy
provides benefits for survivorship, retirement, and disability from this program for eligible employees.
What is social security?
This determines the full amount of Social Security retirement benefits a qualified individual is entitled to receive
What is the Primary Insurance Amount
If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?
Medicare Supplement
Allows purchase of more coverage without proof of insurability.
What is Guaranteed Insurability?
This is also known as social security.
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
What is Decreasing Term Life Insurance?
specialized insurance company that provides liability insurance for individuals and entities with a common bond.
What is a risk retention group (RRG)?
Provision allows a portion of any used medical benefits to be restored following a particular amount of benefit has been used.
What is Restoration of used benefit?
Clause type: The insurer will only refund the premiums paid if the insured dies (a certain way) between a specific time period (2 years) .
What is a Suicide Clause?
This part of Medicare, also known as Medicare Advantage, is obtained by enrolling through a private insurance company approved by Medicare.
What is Medicare Part C?
Can trigger MEC status and has taxable growth. (highest early cash growth). One lump sum payment.
What is Single Premium Life Insurance?
This Act was established to protect privacy by requiring the fair and accurate reporting of consumer information.
what is the Fair credit reporting act?
The maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid is 31 days.
What is the Mandatory Uniform Policy Provision?
*Not traditional question*
Name as many of the 12 Mandatory Provisions (NAIC standard)
Entire contract
Incontestability- 2 yrs then policy can't be voided except fraud
Grace Period- overdue payment period
Reinstatement- lapsed policy reinstated w/in 3 yrs
Notice of Claim- notify w/in 20 days of loss
Claim Forms- insurer send forms w/in 15 days
Proof of loss- submitted w/ in 90 days
Time of payment of claims- prompt payment
Payment of Claims- who's getting paid (ben, insured, provider)
Physical exam/ Autopsy- insurer can request at their expense
Legal Actions- cannot sue insurer until 60 days after loss and w/in 3 yrs
Change of beneficiary- can change unless irrevocable
Disability income benefits are paid to the covered worker in the amount of the PIA after how long of being disabled?
*Not traditional question sorry*