UTAH LIFE INSURANCE LATEST
TEST
A producer cannot share commissions with: - ANSWERS-Someone that
is not a life insurance agent. Monies may not be commingled with the
producer's personal funds.
Insurance Fraud: - ANSWERS-Anyone who knowingly misappropriates
insurance premiums, makes any material false statement of an insurance
application, or makes a false insurance claim commits insurance fraud.
McCarran Ferguson Act - ANSWERS-The fed govt had the right to
regulate the business of insurance but only to the extent that such
business is not regulated by state law (which most are) They did this
with the intent of not having to regulate them against the provisions of
the fed antitrust laws.
Notice to Applicant - ANSWERS-Notifies the applicant that a report
will be ordered concerning their past credit history and any other life or
health insurance for which they have previously applied.
Consumer Reports - ANSWERS-Information on a person's credit,
character, reputation, or habits.
END OF
PAGE 1
, UTAH LIFE INSURANCE LATEST
TEST
Third-Party Ownership - ANSWERS-Businesses that own policies on
key employees.
Medical Information Bureau - ANSWERS-Reports issued by the MIB
are another source of information which may aid the underwriter in
determining whether or not to accept a risk. This is a non-profit trade
association that maintains medical information on applicants for life or
health insurance. Applicants or are denied coverage due to information
in an MIB report must be given explanations and an opportunity to
challenge information about their medical history that may be
inaccurate.
Changes in the Application - ANSWERS-Any changes made to an
insurance applicant after it is completed must be initialed by the
applicant.
Classifications of Risks - ANSWERS-Standard Risks - Reflects average
exposures and fall into a normal range. These risks can be insured for
standard rates and premiums.
Substandard Risks - Higher risked people that can still receive insurance
for a higher premium.
Preferred Risks - Below average risk and pay lower premiums
Declined Risk - Insurer company has decided not to insure the applicant.
END OF
PAGE 2
, UTAH LIFE INSURANCE LATEST
TEST
Morality Rate - ANSWERS-The number of deaths per 1,000 people.
Level Premium - ANSWERS-Set amount premium with out increasing
or decreasing over the policy
Premium Mode - ANSWERS-Simply the frequency with which a policy
premium will be paid.
Human Life Vale Approach - ANSWERS-Focuses on an individual's
future stream of income. It considers such things as annual salary and
expenses, years remaining until retirement, and future value of current
dollars. (how much will the insured make?)
Needs Approach - ANSWERS-This technique focuses on the needs of
survivors. It considers such things as funeral expenses, final illness,
continuing family income needs, children's education, retirement income
etc. (How much will the survivor need?)
Buy -Sell agreement - ANSWERS-Legal document outlining the
business continuation plan.
END OF
PAGE 3
TEST
A producer cannot share commissions with: - ANSWERS-Someone that
is not a life insurance agent. Monies may not be commingled with the
producer's personal funds.
Insurance Fraud: - ANSWERS-Anyone who knowingly misappropriates
insurance premiums, makes any material false statement of an insurance
application, or makes a false insurance claim commits insurance fraud.
McCarran Ferguson Act - ANSWERS-The fed govt had the right to
regulate the business of insurance but only to the extent that such
business is not regulated by state law (which most are) They did this
with the intent of not having to regulate them against the provisions of
the fed antitrust laws.
Notice to Applicant - ANSWERS-Notifies the applicant that a report
will be ordered concerning their past credit history and any other life or
health insurance for which they have previously applied.
Consumer Reports - ANSWERS-Information on a person's credit,
character, reputation, or habits.
END OF
PAGE 1
, UTAH LIFE INSURANCE LATEST
TEST
Third-Party Ownership - ANSWERS-Businesses that own policies on
key employees.
Medical Information Bureau - ANSWERS-Reports issued by the MIB
are another source of information which may aid the underwriter in
determining whether or not to accept a risk. This is a non-profit trade
association that maintains medical information on applicants for life or
health insurance. Applicants or are denied coverage due to information
in an MIB report must be given explanations and an opportunity to
challenge information about their medical history that may be
inaccurate.
Changes in the Application - ANSWERS-Any changes made to an
insurance applicant after it is completed must be initialed by the
applicant.
Classifications of Risks - ANSWERS-Standard Risks - Reflects average
exposures and fall into a normal range. These risks can be insured for
standard rates and premiums.
Substandard Risks - Higher risked people that can still receive insurance
for a higher premium.
Preferred Risks - Below average risk and pay lower premiums
Declined Risk - Insurer company has decided not to insure the applicant.
END OF
PAGE 2
, UTAH LIFE INSURANCE LATEST
TEST
Morality Rate - ANSWERS-The number of deaths per 1,000 people.
Level Premium - ANSWERS-Set amount premium with out increasing
or decreasing over the policy
Premium Mode - ANSWERS-Simply the frequency with which a policy
premium will be paid.
Human Life Vale Approach - ANSWERS-Focuses on an individual's
future stream of income. It considers such things as annual salary and
expenses, years remaining until retirement, and future value of current
dollars. (how much will the insured make?)
Needs Approach - ANSWERS-This technique focuses on the needs of
survivors. It considers such things as funeral expenses, final illness,
continuing family income needs, children's education, retirement income
etc. (How much will the survivor need?)
Buy -Sell agreement - ANSWERS-Legal document outlining the
business continuation plan.
END OF
PAGE 3
