Insurance Flashcards

Question

Annuity matrix when payments begin

Answer 1

Immediate annuity - one month to 1 year Deferred

Answer 2

Variable Fixed Equity indexed

Answer 3

3 main Withdrawals - full or partial or systematic Life annuity Annuity certain - fixed period - fixed income

Answer 4

Single Multiple - joint life - joint and survivor -full -2/3 -1/3

Answer 5

REFUND -lump sum - installment PERIOD CERTAIN -5 yrs - 10 -15 -20

Answer 6

N x (n-2) number policies Value of company divided by $ policies = amount of each. Good for small amount of partners who are around the same age Death benefit passes tax-free to surviving owner Increase in basis to the surviving owner is the primary advantage over an entity purchase

Answer 7

Preferred solution with many partners DB passes tax free to the business Business pays policy premiums Disadvantage. Does not increase basis (no step up) So surviving owners will have more gain when they sell the business

Answer 8

Risk retention Bc ppl don't even realize they have the risk until something happens

Answer 9

20% penalty for nonmedical but goes away at age 65 BUT it IS taxable if not for medical Age 55 catch-up Can use for LTCi but not for medical or dental premiums Deductible counts towards Mac out of pocket See picture

Answer 10

Insurance contract compensates you for any damage loss or injury caused only to the extent of loss incurred See picture

Answer 11

Only covers skilled nursing IF after a hospital stay. 1st 20 days no copay Then you pay 204 and they pay rest until 101 days. ZILCH Medicare does NOT pay for custodial care

Answer 12

Tax-free benefits if qualified Required features include 1.Benefit payable only to a qualified long-term care 2. Contract must be guaranteed renewable 3. Contract does not pay or reimburse expenses reimbursed under Medicare. No double dipping 4. No cash surrender value 5.Dividends cannot be paid out they can only be applied to premium or increase future benefits 6. No limitations or exclusions except pre-existing within 6 months of application 7. Contract cannot require prior hospitalization or provide skilled nursing only 8. 2-year incontestable clause for misrepresentation

Answer 13

Two of six ADLs OR substantial cognitive impairment -Either of the above required doctor certification of condition -ADLs require condition to last 90 or more days ADLs B e d c o t Bathing Eating Dressing Continence ON OF Toilet Transferring

Answer 14

Tax-free benefits Deduct premiums on schedule a, limited Can use HSA to pay premiums EmployER paid premiums are tax-free and benefits remain tax free

Answer 15

Private annuity payments are unsecured promises to pay a monthly fixed payment to the seller for life and are received by the seller as a tax-free return of adjusted basis, capital gains, and interest taxed as ordinary income

Answer 16

Adults over 18 unable to work due to physical or mental disability that is expected to last at least 12 months or result in death

Answer 17

Property part 1 a b c d Address backyard contents damage destroyed digs Property part 2 EF exposure to legal action and funds for fractures Standard h05 typically provides coverage for contents at a limit of 50% of the part A dwelling coverage unit

Answer 18

Name specify what perils are covered the rest is not Open peril specify what is excluded the rest is covered You want OPEN H03 and h05 are both open dwelling but 8 H03 is named contents versus h05 is open contents

Answer 19

H02 is broad, basic H03 is special, better H05 is comprehensive, BEST H03 + h 015 equals h05 The h015 adds open perils for contents

Answer 20

4 rent. h04 broad contents and liability 94 we rented. 4 rent 95 we owned. 5 is best homeowners

Answer 21

Ho6 ,"unit owners" Condo/coop

Answer 22

H08 modified Know the name modified

Answer 23

part A liability Max 1 bodily/max all bodily/max property Part D damage to your auto Collision accident Comprehensive Hitting a deer is on comprehensive!

Answer 24

Taking cash Used to pay a portion of the next premium Left to accumulate interest Used to purchase single premium paid up additions Used to purchase one year term insurance 5th dividend option So can't purchase a single premium immediate annuity??

Answer 25

Provide a return on the assets invested that is tied to a market index There's often a participation rate and cap on these contracts For example the contract will pay interest equal to a stated percentage of whatever the index achieves over a certain period but the overall return may be capped Also there may be a floor limiting potential losses associated with the index

Answer 26

BENEFIT PERIOD Specific time frame or pool of money option Under pool of money the policy lasts longer than the stated. If the cost of care is less than the maximum daily benefit ELIMINATION PERIOD 0-365 DAILY BENEFIT RIDERS. Inflation protection most important WAIVER of PREMIUM RENEWABILITY

Answer 27

Skilled nursing Higher level than ALF. Has rehab, 24 hr ALf. Residential personal Care health support ADC. Residential socialization structure supervision might include medical management Custodial is nonmedical Adc, home health Home health aide Personal Care non-medical Hands-On approach Homemaker household task and errands a hands-off approach Medicare does not pay for long-term custodial care and they only pay for skilled nursing limited time following hospital stay

Answer 28

Benefits or tax-free Can pay premiums from HSA *Premiums paid by employers are tax-free to employees AND benefits remain tax free Premiums are qualified medical for schedule A

Answer 29

Provide additional asset protection if the benefit is exhausted and the insured files for Medicaid The total amount paid under long-term care is added to the Medicaid spend down limit and protected

Answer 30

Same DB, uses up CV Use the cash value as a single premium to pay for term life insurance for as long as the cash value will support the stated death benefit. No residual cash value Maintains the original death benefit but may not last to life expectancy.

Answer 31

Lower DB retains a CV Use CV to buy a paid-up policy of the same type reduced DB but retains CV that will grow throughout the life of the policy at a reduced rate

Answer 32

Automatic premium loan alternative that allows for a loan against the policies CV for paying the overdue premiums provided the CV is more than or equal to the premium amount due. Avoids a lapse Any automatic premium loan is added to any other outstanding policy loan and the unpaid loan plus accrued interest is subtracted from the DB

Answer 33

Terminally or chronically ill Terminally ill certified by physician death within 24 months Chronically ill unable to perform two of six ADLs for at least 90 days Must be a 15-day cooling off. Viator is the owner of the policy Viatical settlement company pays ongoing premiums and receives future death benefits Amounts received by the insured are excluded from gross income if terminally ill. If chronically ill benefits excluded to the extent I used for LT care services Basis to the viatical settlement company is cash paid plus subsequent premiums at death the amount received in excess of basis is taxable to the biatical settlement company

Answer 34

Chance of loss or no loss No chance of gain Like a flood or earthquake

Answer 35

Moral is conscious intentional actions or fraud to take advantage of insurance coverage Morale is subconscious. A passive disregard Leaving doors unlocked

Answer 36

an insurance agreement, the insured pays a premium to the insurer in exchange for financial protection against uncertain events, such as accidents, property damage, or illness.

Answer 37

One party prepares the contract. The other has little power. Take it or leave it. Most insurance contracts

Answer 38

Can be held liable for torts of another. Like Parent of child

Answer 39

Negligence caused by one or two or more parties. Each party may be held fully liable. The party paying more than its own legal share can seek contribution from the others who have not paid their proportional share.

Answer 40

Involves both the chance of loss or gain, such as gambling. Speculative risk is not insurable.

Answer 41

Losses caused by factors not related to the economy (e.g. death of the family breadwinner). These tend to occur with regularity and can be insured against.

Answer 42

The act itself constitutes negligence, thereby relieving the burden to prove negligence. Driving the wrong way down the highway

Answer 43

Liability without regard to negligence or fault. Example your dog bites the mailman

Answer 44

Anything that causes a financial loss. Wind, fire, theft

Answer 45

Liability for damage resulting from some extraordinarily dangerous activity or other statutorily defined activities. Negligence does not have to be proved; however, defenses may be allowed to refute or lessen liability. Most traffic violations

Answer 46

An insurance contract is a unilateral contract. Only the insurer promises to do anything, as there is no promise for the insured to pay the premium.

Answer 47

A condition that serves to increase the frequency or severity of perils. Gasoline soaked cloth

Answer 48

The likelihood that parties with the greatest probability of loss are the ones who most desire the insurance. Insurance seeks to avoid adverse selection. Sick person getting health insurance

Answer 49

Holds that damages assessed against a negligent party should not be reduced simply because the injured party has other sources of recovery available (such as insurance or employee benefits).

Answer 50

Remember some of this could be taxable watch the total income Is it the 2534 32 44 formula

Answer 51

You receive benefits of your unable to work in your own occupation even if you find employment in another profession

Answer 52

Term because it is generally insurance only no savings component

Answer 53

Pays full cost for 60 days After 150 it's all on the patient

Answer 54

With a guaranteed renewable the insured has the right to renew for a stated number of years. The insurer cannot change the premium unless the change is made for an entire class of policyholders Non-cancelable gives the insured the right to renew for a stated number of years with a guaranteed premium at renewal

Answer 55

Shoot I can't attach photos anymore. I have a chart in my Excel summary file and downloaded to photos on 11.21.24