Other Finanacial Protection Products Flashcards
What does insurance premium tax stand at?
12%
How are MPPI payments made?
As a percentage of a salary subject to a total claim limt or by refferance to actual mortgage costs.
How long in general does MPPI Payout?
12-24 months
What % of the population would struggle to pay their mortgage if they couldn’t work?
55%
Who sets the standards for MIIP?
ABI and the council for mortgage lenders (cml)
What are the 7 standard conditions regarding MPPI
Generally available to those aged 18 to 64 and resident in the UK, chanel Islands along Isle of man
Must be employed or self-employed atheist 16 hours a week and not at risk of redundancy.
Pre-existing conditions are excluded, and you should be actively in work.
Deffered periods may apply between first taking the policy and making the claim.
Benefit will be limited by other incomes
Self-employed people will generally have to have stopped working and gone into liquidation
Plans are portable (change to other providers)
When can MPPI be sold?
Not on the same day as the mortgage sale
7 days after the sale or the point of providing a personalised illustration.
Similar to PPI, which is 7 days with illustration.
How much notice must MPPIs provide to cancel or withdraw a policy
90 days
How much notice do MPPI providers have give to amend a policy?
30 days
How is accident, sickness and unemployment insurnce (ASU) paid?
Flat rate or percentage of earnings.
How is PAS paid?
Weekly, tax-free payments for limited time 12-24 months
What are group PAS insurances used for?
Either general in nature or to cover specific activities of the group.
What is an indemnity policy?
A policy that will only pay out what treatment costs in the event of a claim.
What are the 4 main principles ABI gives for PMI cover?
Common terminology and definitions should be used.
Mandatory information provided to customers.
Explanation of core terms and conditions should be in plain language.
Specific point of sale information regarding coverage and options.
What does basic PMI cover?
Accommodation
Drugs
Dressings
Doctors
Costs kept down with high excess level.
What is included in standard level PMI?
Diagnostic tests
Outpatient treatment
Psychiatric
What is included in standard level PMI?
Higher limits and longer claim period
Private ambulances
Cancer treatment
Wide range of hospitals
How does undewriting via moratorium work?
Reduces premiums, administration, and need for medical evidence.
Excludes any past medical condition the customer has had in the last 5 years for 2 years from the policy start. The customer must also be treatment free for 2 years for each condition.
What could be an issue with moratorium underwriting?
Regualr checkups for a condition and classed as ongoing treatment so would negate the insurance for that condition.
What are the 6 general exclusions from PMI
Conditions of self-harm
HIV/AIDS related conditions
Conditions arising from pregnancy
Alcohol and drug abuse
Chronic conditions
Organ transplants
How can a claim for PMI be made?
In general, only with a GP recommendation unless being admitted straight to hospital through A&E.
Most insurers have claims specialists that will pre-approve treatment with certain conditions.
Approval should generally be sort before accepting treatment.
How are PMI payments made?
Benefits are non taxable, paid directly to the health provider.
What are the benefits of group PMI?
Underwriting is not usually necessary, and some policies cover preexisting conditions from day one.
Premiums are likely to be cheaper.
Discribe health cash plans?
Offer reduced benefit compared to PMI due to maximum level for medical treatment.
Is more affordable
Pre-existing conditions will be excluded, and a deffered period of 6 months will apply between taking the policy out and making a claim.
How do dental plans generally work?
Overall maximum claim amount each year.
Usually require a checkup on outset for preexisting conditions.
Offered as standalone plans (often through dentists), add-ons to private medical insurance, part of employee package.
