Chapter 2 Flashcards
Do not call registry is updated every _____
31 Days
Sales Presentation
Buyer’s Guide
Policy Summary
Conditional Receipt
Effective date starts upon completion of a task
ex. Medical Examination
Binding Receipt
Effective date is temporary after payment until application is accepted
Underwriting Process
Selection
Classification
Rating
Agent Report
Classified personal assessment of the applicants character
Classification of Risks
Standard
Preferred
Substandard
Net Premium =
Mortality - Interest
Gross Premium =
Net Premium + Expenses
Survivor Protection
Provides funds for dependents
Estate Creation
Provides immediate funds for survivors by creating a liquid estate
Provides funds to pay estate taxes and loans to conserve or protect the value of the estate
Estate Conservation
An amount of accessible cash to be borrowed during the lifetime of the insured
Cash Accumulation
Liquidity
Provides immediate funds to pay for final expenses and creditors
Viatical Settlements
Policy may be purchased by a third party form a terminally ill insured providing immediate cash prior to death
Provides immediate funds to pay for funeral expenses and burial
Preneed Plan
Benefits payable to a beneficiary are ______ from the insured’s creditors
Exempt
Stranger Originated Life Insurance (SOLI)
When a stranger takes out a life insurance policy for the sole purpose of profit
Investor Originated Life Insurance (IOLI)
A life insurance transaction which is initiated by investors who purchase insurance on seniors
Capital Liquidation
Assumes both principal and interest are liquidated over time to provide income
Capital Retention/Conservation
Assumes income will come from investment earnings only
