Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

TX insurance > tx need to know > Flashcards

tx need to know Flashcards

1
Q

insurance

A

the transfer of risk of loss. the cost of an insured loss is transferred over to the insurer and spread among other insureds.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

insurer’s consideration

A

the promise to pay for losses; insured’s consideration is the payment of premium and statements on the application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

representations

A

statements believed to be true. insured’s statements on the application are representations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

field underwritter

A

a life insurance producer is company’s field underwriter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

conditional receipt

A

the applicant may be covered as early as the date of the application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

insurable interest

A

must exist at the time of application. the policyowner must have insurable interest in the life of the insured.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

insurance application

A

the key source underwriters use for information about the applicant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

can not refuse coverage

A

insurer’s can not refuse coverage solely on the basis of adverse information on an MIB report.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

the higher the risk

A

the higher the premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

a buyers guide

A

provides generic information on various types of policies. a policy summary provides specific information on the policy being issued.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

No premium

A

No coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

term insurance

A

provides the greatest amount of coverage for the lowest premium. Term insurance has no cash value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

whole life insurance

A

provides lifetime (permanent) protection and accumulates cash value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

skips a premium on universal life

A

the missing premium may be deducted from the policy’s cash value. The policy will not lapse.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Variable contracts

A

the policyowner bears the investment risk ( assets in a separate account)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Premium rates

A

on a joint life policy are determined by averaging the ages of both insureds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Joint life

A

first to die

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

survivorship life

A

second to die (last survivor)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

annuities are based on

A

the life expectancy of an annuitant, the annuitant must be a natural person, regardless of who owns the policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

annuity accumulation period

A

funds are paid into annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

annuity period

A

funds are paid out to the annuitant

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

shorter life expectancy

A

higher benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

longer life expectancy

A

lower benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Annuity premium payment methods

A

single premium vs periodic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

annuity payments being

A

immediate vs deferred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

annuity premium investment

A

fixed vs variable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

annuity proceeds disposal

A

pure life, annuity certain, life refund annuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

immediate annuity

A

purchased with a single premium, income payments from a deferred annuity begin sometime after 1 year from the date of purchase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

pure life annuity

A

provides the highest monthly benefit, but there is no guarantee that the entire principal will be paid out

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

fixed life option

A

pays for a specific time only, whether or not the annuitant is living

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

entire contract

A

policy + copy of application + any riders or amendments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

absolute assignment

A

the complete and permanent transfer of ownership rights; collateral assignment is the partial and temporary transfer of rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

no beneficiary named

A

policy proceeds go to the insured’s estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

grace periods

A

protect policyholders from losing insurance coverage if they are late on a premium payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

misstatement of age

A

results in adjustment of premiums or benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

policy loans

A

Only available in policies that have cash value (whole life)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Waiver of premium rider

A

waives the premium for a total disability after a waiting period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Childrens term rider

A

one premium for all children

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

accelerated benefit

A

early payment of part of death benefit to the insured from the insurer for qualifying medical expenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

nonforfeiture options

A

triggered by policy surrender or lapse

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

extended term

A

the automatic nonforfeiture option: same face amount, shorter term of coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

dividends

A

a return of excess premiums; therefor not taxable when paid to the policyowner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

settlement options

A

triggered by the insured’s death or age 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

under life income

A

(straight life) settlement option, the recipientent cannot outlive the benefit payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

life settlement

A

the owner sells an existing life policy to a third party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

group insurance

A

is written as annually renewable term insurance. in group insurance, the master contract if for the employer and certificates of insurance are for individual insureds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

group to individual life insurance conversion

A

evidence of insurability is not required

48
Q

qualified plans

A

have tax advantages

49
Q

traditional IRA’s and Roth IRA’s

A

for individuals with earned income. Contributions to a traditional IRA are with pre-tax dollars (tax deductable) contributions to a Roth IRA are with after tax dollars (Not tax deductible)

50
Q

traditional IRA distributions

A

are taxable. roth IRA distributions are not taxable

51
Q

403 (b)

A

for nonprofits and public school systems

52
Q

contributions to qualified plans

A

are limited to a maximum amount (established by the IRS)

53
Q

policy loans

A

are not income taxable from cash value

54
Q

lump sum cash payment

A

from life policy are tax free for the beneficiary

55
Q

settlement options

A

the principal is tax free, but the interest is taxable

56
Q

taxes must be paid

A

either upon contribution or upon distribution, not both. (if taxed on one end, will not be taxed on the other)

57
Q

MEC

A

is an overfunded life insurance policy= failed the 7-pay test. once an MEC, always an MEC

58
Q

agent’s responsibility

A

to make sure that an application for insurance is complete and accurate to the best knowledge of the applicant

59
Q

changes in the application

A

must be initialed by the applicant or insured

60
Q

coverage gap

A

there cannot be any coverage gap between the existing coverage and replacement coverage

61
Q

No deductible

A

for basic hospital expense coverage

62
Q

HMO main focus

A

preventative care

63
Q

HMO gatekeeper

A

helps control the cost of healthcare by only making the necessary referrals

64
Q

PPO’s

A

allow more flexibility between in-network and out-network providers in exchange for a higher premium than a HMO

65
Q

Out of pocket costs

A

in network=lower out of pocket costs, out of network= higher out of pocket cost

66
Q

FSA

A

may be used to pay medical and dental expenses for employees and dependants

67
Q

nonhealth withdrawal penalties

A

before age 65: 20%; after 65 no penalty

68
Q

HRA

A

allow employees to roll over unused benefits to the following calendar year; in addition to new benefits

69
Q

elimination period

A

a “time’ deductible designed to eliminate coverage for short term disabilities. and reduce the filing of excessive claims

70
Q

probationary periods

A

apply to sickness, not accidents or injury

71
Q

group disability plans

A

benefits are based on a percentage of the workers income; individual policies specify a flat amount

72
Q

key person disability insurance

A

the business is the contract owner, premium payer and the beneficiary

73
Q

AD&D policies

A

the principle sum means the full face amount and the capital sum is the percentage of the face amount

74
Q

LTC policies

A

must be guaranteed renewable

75
Q

skilled care and intermediate care

A

require the assistance of medically licensed personnel, custodial care may be administered by nonmedical personnel

76
Q

coverage for dependents

A

under COBRA may be extended to 36 months in the event of the employee’s divorce or death

77
Q

limited policies

A

cover a specific sickness or accident only

78
Q

health insurers must offer

A

pediatric dental coverage ( 18 or younger) as an essential health benefit under a health plan or as a stand alone dental plan

79
Q

insurers must include

A

individual health insurance policies the standard provisions established under the NIAC’s uniform accident and sickness policy provision law

80
Q

insurers are prohibited

A

from making changes to a health insurance policy without an insured’s consent

81
Q

accident and health grace period

A

directly tied to the premium payment mode

82
Q

insured’s duties

A

notice of claim and proof of loss

83
Q

insurer duties with claim

A

claim forms and the time of payment of claim

84
Q

misstatement of age

A

on insurance application, benefits are adjusted per the current premium

85
Q

insuring clause

A

defines the scope of coverage, as well as identifies the rights and the duties of each party of the contract

86
Q

insured may cancel

A

an insurance policy at any time

87
Q

guaranteed renewable policy

A

requires the insurer to continue coverage as long as premiums are paid

88
Q

Medicare Part A

A

hospital insurance

89
Q

Medicare Part B

A

medical insurance

90
Q

Medicare Part A does not cover

A

outpatient hospital care, that is covered under Medicare part B

91
Q

Medicare Part C

A

expands original medicare benefits through private health insurance programs

92
Q

medicate supplement plans

A

sold through private insurers, not federal insurance programs

92
Q

initial benefit limit is reached

A

a prescription drug benefit plan will pay75% of all generic and brand name drug costs

93
Q

Medicare supplement plans

A

must offer the core benefits available in Plan A

94
Q

Coordination of benefits provision

A

ensures that benefits are not paid in excess of the total losses incurred

95
Q

Occupational Basis policies

A

cover accidents or sickness that occur on or off the job. when written on a nonoccupational basis, policies cover claims that result solely from accidents or sicknesses occurring off the job

96
Q

partial disability

A

covers a partial loss of income for disabled insureds who are unable to perform some, but not all of their regular job duties

97
Q

residual disability

A

calculated as a percentage determined by current earnings and earnings prior to disablement

98
Q

disability insurance premiums

A

are deductible as business expense, benefits are taxable income for employee

99
Q

premiums paid by employer

A

are tax deductible as the employer’s business expense

100
Q

a domicile

A

refers to the location where an insurer is incorporated, not necessarily where the insurer conducts business

101
Q

insurers require state to do business

A

certificate of authority

102
Q

credit life insurance

A

cannot pay out more than the balance of the debt

103
Q
A
104
Q
A
105
Q
A
106
Q
A
107
Q
A
108
Q
A
109
Q
A
110
Q
A
111
Q
A
112
Q
A
113
Q
A
114
Q
A
115
Q
A
116
Q
A
117
Q
A

TX insurance (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions