So… Flashcards
Owner sells existing life policy to third party
Life settlement
Written as annually renewable term insurance
Group insurance
Master contract is for employer and certificates of ins are for individual insureds
Group insurance
When converting from group life individual life ins
Evidence of insurability is not required
All true of third party ownership except
Borrows money from bank
Purchases life policy on grandson
Company Purchases life ins on manager who is imp part of org
Purchased new home made assignment today of life ins to mortgage co
Insured borrows money from bank and makes collateral assignment of part of death vlbenefit to secure loan
Who is third party owner
Owner who is not the insured
Not true or life settlements
Must be Ill
Used for key person
Sold for greater than current cash value
Seller must be terminally Ill
Appropriate for parent buying policy on child
Parent is owner
Family term rider
Third party ownership
Buy sell agreement
Third party ownership
Result of calculation based on average number of months insurd projected to live due to medical history and mortality
Life expectancy
Mortality rate
Risk exposure
Morbidity
Life expectancy
True regarding group ins except
Ppts each rec policy
Group sponsor is holder
Ppts in ins planare issued certificates of ins
Small groups are eligible for ins
Ppts in policy each rec policy
Transfer of some or all death benefits of policy to creditor as security for loan
Doesn’t give creditor rights of ownership
In death creditor would only be able to recover proceeds equal to creditor’s remaining interest in loan
Collateral assignment
Correct statement about group life
Policy can be converted to individual term ins
Cost of coverage is based on ratio of mens nd women in group
Premiums are higher than in an individual policy bc no medical exam
Group sponsor rec certificate of ins
Cost of coverage is based on ratio of mens nd women in group
In single employer group plan what is name of policy issued to employer
Master contract
Certificate of ins
Employer ins contract
Certificate of authority
Master contract
