Life Stuff

Question 1

A group plan in which both the employee and the employer contribute to the premium and requires a minimum of 75% participation is referred to as

Answer 1

Contributory

Question 2

What is a shared funding arrangement?

Answer 2

Allows the employer to self fund health care expenses up to a certain limit. The employer can select a deductible and pay covered expenses for any individual incurring claims up to that maximum at which point the insurer assumes the risk

Question 3

What is a retrospective premium arrangement

Answer 3

The insurer agrees to collect a provision premium but my collect additional premium or make a premium refund at the end of the year based on actual lose a

Question 4

What is a minimum premium plan

Answer 4

Occurs when the employer agrees to fund expected claims and the insurer funds excess claims. The employer and insurer agree to a trigger voting which the insurer is liable. The employer is response for a minimum premium consisting of administrative expenses, reserves, and a premium for stop loss to find claims over the trigger

Question 5

To protect against adverse selection, minimum mandatory participation requirements are established in group insurance. A plan in which the employer pays the entire premium and requires 100% participation is referred to as

Answer 5

Noncontributory

Question 6

Albert works as a window washer at the top of skyscrapers Bernie works as a window washer on the ground floor the fact that Albert is more likely to seek insurance coverage than Bernie is an example of what?

Answer 6

Adverse selection

Question 7

United auto workers union provides insurance to its employees, this type of group insurance is called?

Answer 7

Labor group

Question 8

PDQ printing pays for all routine claims PDQ’s insurer pays for excess or unexpected claims beyond a specified trigger point. PDQ’s policy is funded use in which premium option?

Answer 8

Minimum premium

Question 9

What is the human life value approach

Answer 9

How much will the insured make

Question 10

What is the needs approach

Answer 10

How much will the survivor need

Question 11

What is the family dependency period

Answer 11

The surviving spouse will have children to support during this time. Family’s income needs are greatest at this time.

Question 12

Pre retirement period

Answer 12

Children are no longer down debt also known as the blackout period

Question 13

What is the retirement period

Answer 13

The surviving spouses working income ceases and his social security and outside retirement benefits begin

Question 14

What is the capital conservation method

Answer 14

Income is derived only from interest gained on the principal.

Question 15

What is the capital liquidation method

Answer 15

Both interest and principal are used to generate income

Question 16

What is the traditional net cost method

Answer 16

Under the traditional net cost method premium payments for a specified number of years are added together, the projected cash value accumulation and I think of it in payments for the period are then subtracted, and the result is divided by the number of years under consideration to produce an origin will not cost.