Insurance Flashcards
Implied Authority
Insurance agent is instructed not to write policies with clients that have cancer. Agent writes a policy with a client that has cancer. The insurance company is required to pay the client out because the agent has implied authority to write contracts for the company.
First to Die policy makes sense when?
- As mortgage protection
- As protection against family debt (husband and wife)
- To Fund a buy-sell agreement
Your term policy sends you a lapse notice, what do you do?
Submit a policy reinstatement form. You will have to pay premiums in arrears.
Medicare Part A
Subject to deductible and copayments. Disabled workers can be covered under age 65, hospice is also covered under part a.
Disability Policy
$17,250 per month
90 day elimination
Residual/SIS Benefit $800 a month
Potential SS benefits if qualified.
What amount can this person collect?
$17,250 per month (once 90 days is up), and a possible $800 a month from SIS benefit, as long as they don’t receive ss benefits.
Client 55 is approaching retirement. What benefits should she obtain when she retires?
(Major Med Insurance, Disability, LTC, Life Insurance)?
Major Med Insurance and LTC. She needs Medical and LTC. Ther is no need for Life or Disability.
Client makes $200k a year with $200k Bonuses how should this client cover himself for a disability?
Supplement Group Policy with individual one (own occupation) up to 65. Build up emergency fund and self-insure for a time to deal with the waiting period.
Bird hits window, tree falls on car… driver who carries PAP. Under what part of PAP will this be covered?
Other than collision
Car skids on ice, driver and passenger are injured, requiring emergency room treatment. What part of PAP will this be covered?
Medical Payments
Car skids on ice, crashes into a barricade. The passenger is hurt and sues the driver. What part of pap will this cover?
BI/PD (Liability Section)
Son is off at college delivering pizzas, car is covered under parents insurance. The son is distracted looking for an address and hits a parked car totaling the parked car and doing extensive damage to his car. Will his parents insurance cover the damage?
No. The car was being used for business purposes.
Client purchases a home for $300,000, value of land is $50,000, mortgage is $260,000. Property is covered for fire related perils by XYZ company to $225,000, with an 80% coinsurance and a $1,000 deductible. Does the client have enough coinsurance coverage for the home?
If the property is complete loss the mortgage will not be paid off.
Under Workers Comp laws, what benefits are payable to an incapacitated worker to their dependents?
- Total permanent disability benefits
- Rehabilitation benefits
- Occupational disease benefits.
What benefts can be offered under a cafeteria plan?
- Cash benefit
- Group term life insurance
- Accident and health benefits
Money deducted from an employee’s pay into an FSA is subject to what taxes?
No withholding taxes, and no FICA taxes.
