Chapter 9 - Other Insurance Based Policies Flashcards
What is a moratorium?
Moratorium is where a client of foregoes immediate medical evidence, possibly including medical examination, which enables the contract to be set up quickly and avoid inconvenience of medical examination for the client. However, underwriting is not forgotten as they will have to undergo the underwriting process when a claim is made, and at that point, the insured may find that they have little or no cover. This is superficially attractive to ensure advising clients like due to its speed.
What is the difference between acute conditions and chronic conditions
Acute are characterised by the rapid onset and are usually amendable secure. Two minute is normally of short duration, and will often resolve the condition more or less fully such as a removal of an appendix.
Chronic conditions are long-lasting and usually incurable, and so not necessarily susceptible to successful treatment. This can be such as some forms of cancer, diabetes, or asthma.
Does personal accident and sickness, cover mental impairment
No
Define short-term general insurance policies and give examples
They are all yearly or monthly renewable contracts, an insurer cannot decide each year whether to renew and on what terms and on what premium these policies are usually subject to insurance premium tax at 12% 
Personal accident and sickness insurance
Private medical insurance
Health, cash, plans and dental plans
Mortgage, payment, protection insurance, and payment protection insurance
Accident, sickness and unemployment insurance
How is personal accident and sickness insurance taxed
Subject to insurance, premium tax, put the benefits of paid tax free
What does the Association of British insurers statement of best practice for sales of private medical insurance do
Sets out rules that are mandatory for ABI members companies who choose to comply with them
No
What are for a Events, normally covered by personal accident and sickness insurance
Death, permanent disablement, lots of an eye, loss of a limb
To what tax or general insurance policy subject
Insurance, premium tax?
Describe the tax treatment of private medical insurance group cover paid for by an employer
The premiums paid by the employer or taxable on the employee as a benefit in kind, but allowable as a business expense for the employer.
Claim payments are tax-free
Which types of mortgages usually get mortgage payment protection insurance?
Mortgages of a main residence in the UK by someone under the age of 65, and he is employed or self-employed
What are the three main types of PMI plans?
Basic, standard and comprehensive
What is the minimum period of time that a 40-year-old claimant would need to be unemployed in order to become entitled to support from mortgage interest loan on a mortgage loan affected
39 weeks
Which types of medical conditions is a private medical insurance policy designed to cover?
Acute conditions only
How long must an accident sickness, and unemployment policy be active before it can be claimed the benefits?
Two years
Private medical insurance premiums are being paid by the employer for an employee who is a higher rate taxpayer. What is the employees tax position with regard to these premiums?
The employee must pay income tax at his marginal rate
What is the most appropriate policy for an employee who is concerned, only with maintaining her mortgage repayments over the short-term should she become ill?
A mortgage payment protection insurance policy, the key word here is short-term as employees will likely be due statutory sick pay.
When a private medical insurance policy set up with a moratorium basis, what does this mean?
A typical moratorium excludes any conditions for which the applicant has received treatment for in the past five years. These conditions were made excluded for two years if no further treatment is required. 
What level if any of PMI would typically pay for parent to stay with a young child in hospital
Comprehensive
Maureen has taken out a budget plan, private medical insurance policy, if she makes a claim, which costs is unlikely to be covered?
Recover the very minimum amount and so it’s highly unlikely that home nursing will be available
When making a claim for becoming unemployed on a mortgage payment to text insurance policy, what is the very maximum out of time for which benefits will usually be paid
24 months
Under accident, sickness and unemployment insurance, how are the payments of the premiums and tax treatment of the benefits done
There is no tax relief of the premiums, and the benefits are tax-free
A mortgage payment protection insurance provider can cancel the policy at a minimum of how many days notice
90 days
What is a restriction of including children on accident sickness policy
They would usually be restricted to accidents only
How many days notice must an insurer give if they want to make an amendment to the mortgage payment protection policy
30 days
Callum , mortgage payment protection insurance policies be transferred to a new mortgage
Yes
Mortgage payment to text insurance for typically require that the proposal to be what
Employed or self-employed for at least 16 hours a week
Is outpatient treatment generally included in PMI cover
Yes
When underwriting mortgage payment section insurance, normally what is the case
Pre-existing medical conditions are excluded
A payment from a private medical insurance policy would be paid how
Tax-free
What is the tax position regarding mortgage payment protection insurance
There is no tax relief on premiums and no tax on benefits
