ALU 202 - Ch 7: Multilife Underwriting – Questions
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Terms in this set (137)
Introduction - What is Multilife 1) guaranteed
Underwriting? 2) simplified
Multilife underwriting is the
underwriting of groups of life
insurance applicants primarily using
nontraditional approaches to risk
selection using the following:
1) _____________ issue (GI), which doesn't
include any traditional individual
underwriting
2) _____________ issue (SI), which includes
fewer UWing reqs than full UWing
Multilife UWing uses products such as
UL, variable life, private placement
products, COLI, BOLI
,Introduction - COLI, BOLI and other 1) COLI
OLIs 2) tax-advantaged
1) In its early decades, what is
commonly known as the __________
marketplace was characterized
primarily by plans intended to provide
benefits to meet the needs of
executives.
2) Various pieces of legislation
created opportunities for life
insurance to be used in _____-_____________
ways to meet these needs.
Introduction - COLI, BOLI and other BOLI
OLIs
__________ has proven to be a cost-
efficient and effective means for
banks to offset rising employee
benefit costs.
Introduction - COLI, BOLI and other It may help the bank retain its top employees
OLIs
BOLI - examples of a bank's employee
obligations that can be informally
funded with life insurance include
executive retirement plans, deferred
compensation plans, and even retiree
medical obligations.
What is another benefit of BOLI
(though not its main purpose)?
,Introduction - COLI, BOLI and other charity-owned life insurance
OLIs
More recently, _________________ (CHOLI),
also known as foundation-owned life
insurance (FOLI), has appeared in the
marketplace and refers to plans
designed to insure multiple or large
numbers of lives on behalf of a charity
or foundation.
Introduction - COLI, BOLI and other True
OLIs
True or False:
There are several significant
differences between CHOLI and both
COLI and BOLI, which greatly
compromise the underwriter's ability
to provide either GI or SI for that
purpose.
Principles of Multilife Underwriting anti-selection
The primary focus of all multilife
underwriting is the avoidance of
_________-______________.
, Principles of Multilife Underwriting - Nonvoluntary
Voluntary vs. Nonvoluntary Plan
Designs
___________________ plan designs are those
in which plan participation is
compulsory and the amount of life
insurance to be placed on each life is
fixed, that is, the amount of coverage
applied for on each life is
predetermined by a method not of
the participant's choosing.
Principles of Multilife Underwriting - eliminated
Voluntary vs. Nonvoluntary Plan
Designs
With nonvoluntary programs, much of
the concern with anti-selection is
________________.
Principles of Multilife Underwriting - Voluntary
Voluntary vs. Nonvoluntary Plan
Designs
_______________ plans are not as protected
from anti-selection by their plan
design. The mere fact that the
proposed insured has a choice of
whether or not to participate is highly
selective.
-Such plans w/ limited UWing are
called SI programs
With A+ Solutions
Save
Terms in this set (137)
Introduction - What is Multilife 1) guaranteed
Underwriting? 2) simplified
Multilife underwriting is the
underwriting of groups of life
insurance applicants primarily using
nontraditional approaches to risk
selection using the following:
1) _____________ issue (GI), which doesn't
include any traditional individual
underwriting
2) _____________ issue (SI), which includes
fewer UWing reqs than full UWing
Multilife UWing uses products such as
UL, variable life, private placement
products, COLI, BOLI
,Introduction - COLI, BOLI and other 1) COLI
OLIs 2) tax-advantaged
1) In its early decades, what is
commonly known as the __________
marketplace was characterized
primarily by plans intended to provide
benefits to meet the needs of
executives.
2) Various pieces of legislation
created opportunities for life
insurance to be used in _____-_____________
ways to meet these needs.
Introduction - COLI, BOLI and other BOLI
OLIs
__________ has proven to be a cost-
efficient and effective means for
banks to offset rising employee
benefit costs.
Introduction - COLI, BOLI and other It may help the bank retain its top employees
OLIs
BOLI - examples of a bank's employee
obligations that can be informally
funded with life insurance include
executive retirement plans, deferred
compensation plans, and even retiree
medical obligations.
What is another benefit of BOLI
(though not its main purpose)?
,Introduction - COLI, BOLI and other charity-owned life insurance
OLIs
More recently, _________________ (CHOLI),
also known as foundation-owned life
insurance (FOLI), has appeared in the
marketplace and refers to plans
designed to insure multiple or large
numbers of lives on behalf of a charity
or foundation.
Introduction - COLI, BOLI and other True
OLIs
True or False:
There are several significant
differences between CHOLI and both
COLI and BOLI, which greatly
compromise the underwriter's ability
to provide either GI or SI for that
purpose.
Principles of Multilife Underwriting anti-selection
The primary focus of all multilife
underwriting is the avoidance of
_________-______________.
, Principles of Multilife Underwriting - Nonvoluntary
Voluntary vs. Nonvoluntary Plan
Designs
___________________ plan designs are those
in which plan participation is
compulsory and the amount of life
insurance to be placed on each life is
fixed, that is, the amount of coverage
applied for on each life is
predetermined by a method not of
the participant's choosing.
Principles of Multilife Underwriting - eliminated
Voluntary vs. Nonvoluntary Plan
Designs
With nonvoluntary programs, much of
the concern with anti-selection is
________________.
Principles of Multilife Underwriting - Voluntary
Voluntary vs. Nonvoluntary Plan
Designs
_______________ plans are not as protected
from anti-selection by their plan
design. The mere fact that the
proposed insured has a choice of
whether or not to participate is highly
selective.
-Such plans w/ limited UWing are
called SI programs
