Wrong answer Insurance Flashcards
What type of coverage is HO-6?
Coverage for Condo’s.
It’s open coverage for A, B, C and broad 50% coverage for D.
When would someone 65+ need life insurance?
When they are over the 13.61 estate tax exemption amount if when they expect their assets to appreciate over that amount. It helps add liquidity to the estate.
Coverage D Indemnity
Provides protection for necessary increase in expenses from loss of use. To calculate what it will cost subtract the expenses from loss of use by normal monthly expenses.
Business Owner Policy Exclusion
Excluded for personal services
Medicare Part B
A. Doctors Visits including house calls, office visits and doctors services in a hospital.
B. Diagnostic tests, radiology, treatment for mental illness, transfusion of blood, physical occupational therapy, digestive and biologics that cannot be self administered.
C. Outpatient services
D. A limited number of home health services
E. Free preventive services
F. Depression screening
Disability Insurance Age 65+ Coverage
Policy will allow coverage on a conditionally renewable basis that he is actively at work. If a policy owner doesn’t inform an owner they are at work, the policy will be cancelled.
Human Life Value Life Insurance Approach
Based on purchasing the amount of life insurance equal to an individuals future income earning ability.
Cobra and Age 65+
Cannot elect cobra if you elect Medicare but can still get cobra instead of Medicare in qualifying events.
HO-4 Policy Coverage
Provides broad coverage on personal property and broad 30% coverage on loss of use.
Activities the NAIC can pursue
Promote law and regulation in the insurance industry
Protect the interest of policy owners
oversee state accreditation programs
Cannot enact legislation
Insurance option best when assets are limited
Term Insurance
Split dollar plan
An arrangement under which an employer and executive share costs of a plan.
Under endorsement the the employer owns the policy and has the responsibility for the premium amounts.
Under collateral assignment the insured employee is the policy owner and the corporation lends the employee the share of the annual premiums.
When does an insured receive their first disability check after a 90 day waiting period?
In day 120 they will receive a check for the 4th month plus the 90 days in arrears.
Uninsured Motorist Claims Keys
Applies to medical expenses, lost wages and pain/suffering but does not include punitive or exemplary damages
Company Interest Deduction on Loans from A Key Employee Policy
A business may deduct up to a limited amount of interest paid on a contract coverage key employees when they take a loan on a key life policy. The loan must not exceed 50k tho
