Misc.

Question 1

MANDATORY Uniform Provisions

All states … Uniform Individual Accident and Sickness Policy Provisions Law

Answer 1

1. Entire Contract
2. Time Limit on Certain Defenses (incontestable)
3. Grace Period
4. Reinstatement
5. Notice of Claims (20d-r)
6. Claim Forms (15r-d)
7. Proof of Loss (90)
8. Time Payment of Claims
9. Payment of Claims.
10. Physical Exam & Autopsy
11. Legal Actions (60d / 3y)
12. Change of Beneficiary

Question 2

OPTIONAL Uniform Provisions (Insurer’s)

Answer 2

1. Change of Occupation
2. Misstatement of Age
3. Other Insurance with This Insurer
4. Insurance with Other Insurers (coordination of benefits)
5. Relations of Earnings to Insurance (2y)
6. Unpaid Premiums (deduct from claim)
7. Conformity w/ State Statutes
8. Illegal Occupation/Act
9. Intoxicants and Narcotics
10. Cancellation - INSURER - 5 - 31 days unearned premium refunded on pro rata basis: INSURED - written & short rate basis

Question 3

Right to Examine (Free Look)

Answer 3

CA health not less than 10 days or more than 30 - 30 days for LTC & medicare supp.

Question 4

S.I.M.P.L.E.

Savings Incentive Match Plan for Employees

Answer 4

IRA or 401k … vesting 100% immediately - 25% penalty w/draw in 1st 2 yrs

Question 5

SEP

Simplified Employee Pensions

Answer 5

Employer can deduct .. taxable to employee … annuities commo

Question 6

HR 10 Plans

Answer 6

for self employed individuals .. contributions deductible

Question 7

Profit Sharing & 401k

Answer 7

if xfer trustee to employee 20% tax must be paid only 80% is rollover

Question 8

ESOP

Answer 8

Employee Stock Ownership Plan - a qualified defined contribution plan

Question 9

403(b) Tax-Sheltered Annuities (TSA)

Answer 9

Employees of nonprofits & public schools

Question 10

IRA’s

Answer 10

all annuitization benefits are taxed … 50% excise tax if payments DONT start prior to 70 1/2

Question 11

Life Policy Settlement Options (insured’s death or endowment)

Answer 11

• INTEREST
• FIXED AMOUNT
• FIXED PERIOD
• LIFE INCOME ONLY
• LIFE INCOME PERIOD CERTAIN
• LIFE INCOME JOINT AND SUVIVOR
• JOINT LIFE

Question 12

NonForfeiture Options

Answer 12

1. Cash Surrender
2. Reduced Paid Up (single premium permanent paid up policy of reduced amt.
3. Extended term - single premium term polcy same face amt (automatic option)

Question 13

Dividend Options

Answer 13

1. Cash
2. Premium Reduction
3. Accumulate at Interest
4. Paid-up Additions - purchases single premium, additional permanent benefits at the insured’s attained age
5. One-year term - single premium, 1 year term for amt. = to cash value
6. Paid-up Option - pays off policy more quickly.
7. Acceleration of Endowment - speeds up endowment

Question 14

Insurance Agent

Answer 14

a person authorized to transact all classes of insurance other than life insurance for insurer (a broker works for insured)

Question 15

COBRA

Answer 15

Applies to employers of 20+… employees & dependents up to 18m up to 29m if qualifies for SS - Dependents 36m if death, disso, Medicare of loss of dependent status