Life Insurance Basics - Chapter 3

Question 1

Who makes up the life in accident and help insurance guarantee association in South Carolina?

Answer 1

All license life and health insurers

Question 2

What is loading or expense loading?

Answer 2

Assigning operating expenses to the policy

Question 3

How much is the maximum the life and accident and health insurance guaranty association pay for covered claims

Answer 3

$300,000

Question 4

What is a living benefit of a life insurance policy?

Answer 4

Loan-values
Last expenses
Cash withdrawals

Question 5

What is the rating approach for applicants who have substandard risks?

Answer 5

?

Question 6

What is constructive delivery?

Answer 6

Company mails policy to policy owner

Question 7

What is a viatical transaction?

Answer 7

Terminal insured sales policy to a 3rd party.

3rd party becomes becomes new owner and receives base value upon insurance death

Question 8

What are underwriting factors?

Answer 8

Age
Gender
Health
Occupation risk

Question 9

When is a policy considered effective?

Answer 9

When the insured is determined insurable, example exam date