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WASHINGTON LIFE HEALTH AND LIFE INSURANCE QUESTIONS WITH COMPLETE SOLUTIONS GUARANTEED PASS BRAND NEW 2025
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Annuity settlement option "add on" programs that are reasonably priced because of volume discounts - ANSWER - >voluntary plans (AKA Mortgage protection insurance) Face value decreases over time. Commonly used to pay off mortgage debt. - ANSWER - >Decreasing term (State to state program) Injured on the Job, covers med expenses Die on the job Benefit paid to spouse Disabled on job, disabilities income payment - ANSWER -
Workers Comp (Worked for 10 years) payroll taxes levied on employees, employers, and the self- employed. Retirement Benefits; Disability Income Benefits; and Survivor Benefits. - ANSWER - >FICA Fully Insured
Survivor benefits 10 days to hang onto the policy and void it at any time for any reason. Begins at policy reception, not issue - ANSWER - >Free-look clause (return/exchange provision) 31 day grace period begins when you fail to make the premium by the due date - ANSWER - >Grace period 31 day grace period on premium payments. The company may charge interest on late payments - ANSWER - Grace period clause a booklet explaining the coverage and
A continuation privilege allows adult children up to the limiting age to be covered as long as they are full-time students. Adult disabled children can be covered their whole lives as long as they are incapable of supporting themselves and dependent upon the parents. An adult standard premium may be charged at age 18. Proof of incapacity or dependency is necessary within 31 days of reaching their 18th birthday. Annual proof of handicap may be required to continue dependent coverage. ANS-Adult dependent children a contract is to be valid, its purpose must be legal - ANSWER - >legal purpose A deductible that shows up in the middle of comprehensive major medical coverage after the basic plans benefits run out and the major medical policy kicks in - ANSWER - >Integrated/corridor deductable a Group Insurance plan in which the entire cost of coverage for all eligible group members is covered by the organizing entity, usually the employer - ANSWER - >noncontributory plan
a guarantee that government would never again allow workers (and their families) to become destitute - ANSWER - >Social Security act A health policy that excludes payment for specific preexisting conditions - ANSWER - >Exclusion rider/Exclusion Waiver/Impairment Rider A hybrid of permanent and temporary coverage - ANSWER - >Combination Policy a lie about a material fact - ANSWER -
Misrepresentation A life policy that builds up cash value - ANSWER - Permanent Policy A list of medical procedures and how much the company will pay for each. - ANSWER - >Schedule of Indemnities
actual premium. - ANSWER - >Return of Premium Term Rider A statement made on an application for insurance that the applicant gaurentees to be true (Not allowed in life and health insurance forms) - ANSWER - >Warranty Accidental death and dismemberment (Add-ons), Accidental loss of life, limb or vision, pays benefits in a lump sum only when medical problems are direct result of an accident (not sickness), death within 90 days of accident or policy won't pay, if accident is triggered by illness - no payout, value policy not indemnity policy, at least one hand, one foot or vision in one eye will pay capital sum (100%), if two hands, two feet or vision in both eyes, policy will pay full amount, when attached to life or health policy, the rider pays over and above overriding policy - ANSWER - >AD&D Rider acts as a legal representative of the insurance company - ANSWER - >agent/producer After submitting the claim, the Insured must wait 60 days prior to filing any lawsuit. And any lawsuit must be filed within 3 years
Endowment life insurance an insurance concept that states that some portions of the
insurance industry prefer that we be made only whole after a loss rather than coming out ahead (Only getting back what you are owed, not getting more than what you had to start with) - ANSWER -
Indemnification An insured must provide the company with written notification in 20 days - ANSWER - >Notice of claim provision An intentional non-disclosure of hiding material facts - ANSWER - >Concealment any health insurance plan that seeks to lower costs be influencing any health related behavior in
the insureds Health Maintenance Organization - ANSWER - >Managed Care Any individual or business may participate. Money put in is tax-deductible. Annual balance rolled over. Balance accrues tax-deferred and can be used for any retirement - ANSWER - >Health Savings Account Applicants who are too risky are declined - ANSWER -
declined risks As long as premiums are paid, the insurer can't refuse to renew the policy (even if the premium changes). Right to renew without proof of insurability until 65. - ANSWER - Guaranteed renewable policy assures the company that no material changes have occurred since the time the application was completed several weeks earlier. - ANSWER - >Statement of Continued Good Health At its own expense, the Insurer has the right to conduct as many physical exams upon the Insured as are reasonable. The Insurer may perform one autopsy unless prohibited
Builds cash value that can be accessed be the policy owner during the insured's life Characteristics: Permanent protection (Until age 100) Cash value AKA Cash surrender value (usually starts growing after second year) is guaranteed by the cash value table The policy endows at age 100 Policy holder can borrow against the policy The policy does NOT pay both the cash value and the face value, it is one or the other ANSWhole life Buy a miniature paid up whole life policy Dividend used as a single net premium payment to purchase as much paid-up insurance as possible Free of sales commissions and expenses - ANSWER -
HELP!!! Additional paid-up insurance Buying a one year term with dividends - ANSWER - >One year term Buying life insurance plans on employees as a part of an overall compensation package. The employee and company join forces to buy insurance on the employee. Premiums and death benefits are shared by the employee and the company. - ANSWER - >Split dollar plans
Can be invested in stocks, bonds, mutual funds, annuities and government securities. Only exists if the individual sets it up. Money set aside in an IRA is tax deductible in the year contributed and is tax deferred. ALL of the money is taxed as ordinary income. Contributions are tax deductible. The account grows tax deferred. Only earned income (wages, salaries, tips, commissions, bonuses) can be put into IRA. Individuals who are active participants in an EmployerSponsored Qualified Retirement Plan - such as a 401(k) - are NOT eligible to deduct contributions if their adjusted gross income rises above specified limits. For eligible individuals, annual contributions are capped. - ANSWER - >Traditional IRA Can tax deduct money placed in a retirement fund. Can fund with pre-tax dollars. - ANSWER - >Tax qualified retirement plan Can turn the term policy into a whole life policy without proving insurability. The premium goes up after conversion
Continued group coverage for former employees for a specified period of time. Does not apply to those terminated for gross misconduct. Persona has 60 days to select coverage. 18 months for terminated employee or dependents. 29 months for disabled employee or dependents and 36 months for dependents of divorced or deceased worker - ANSWER - >COBRA Controls all aspects of a insurance policy - ANSWER -
Owner Covered from the moment of birth until 31 days. Adopted children are treated just like newborns. - ANSWER - Additional Children coverage Covers accidental death while traveling on a common carrier (Train, bus, plane). Set death benefit and will reimburse medical expenses. - ANSWER - >Travel accident insurance Covers the cost of surgery including fees of surgeons, anesthesiologists and post-operative care. - ANSWER - Basic surgical policy defines the rules surrounding policy loans Only applies to Permanent policies
Grants the Insured the right to borrow against the accumulated cash value States the interest rate (usually 8 percent) Requires that enough collateral be in the cash value account to pay both the loan and the interest. So, the full cash value can never be borrowed!. - ANSWER -
Loan values clause Designed to replace part of the insured lost income if the insured becomes totally disabled and unable to work as a result of an accident or illness. - ANSWER - >Disability Income Insurance Discontinued in 2003 due to over-regulation. - ANSWER - Medical Savings Account Dividend is applied toward the next years premium - ANSWER - >Reduced premium option Dividend used as a single net premium payment on a miniature paid up whole life policy. This is the automatic dividend option when no other option is selected. - ANSWER - >Additional paid-up insurance dividend option (Paid-up additions dividend option) dividend used to fund
Employer contributes a specific amount each year to the plan. Employee is responsible for choosing the investment from choices offered by the retirement plan service. Must be funded regardless of company profits. - ANSWER -
Defined contribution pension plans Employer must offer plan. Reduces the employee's taxable income. The employer may also contribute. Third party administrator will reimburse employees for eligible expenses. Use it or lose it! - ANSWER - Flexible Savings Account (FSA) ensure that a policy does not lapse if the insured suffers a disability and cannot work. ANSWaiver of Premium rider Established April 14, 2003. The Health Insurance Portability and Accountability Act, a federal law protecting the privacy of patient-specific health care information and providing the patient with control over how this information is used and distributed - ANSWER - >HIPAA Exchanges the cash value for a "reduced paid-up while life policy" The new policy will have a smaller death benefit, but no more premiums. Basically, the cash is used to make a single premium payment to buy as large a policy as possible given the insured's attained (current) age.
Aviation exclusion rider Explain the underwriting process to the applicant and provide disclosures as required by law.