What must be given to a life insurance applicant when the applicant when the agent receives an application and The initial premium Show
A signed good Health statement may by collected by a life producer at the time of An insurance policy may be issued with a preferred insurance premium in all of these situation except When a producer submits an application that disclose personal info regarding the applicant who supplicant who supplies the privacy notice An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical condition since the time of the application The reason for back dating a policy is To obtain a premium rate based on an early age Which of these is not used as selection criteria in the underwriting process of a life insurance application Mike applied for life insurance and was issue a policy a conditional receipt. He is later found to be insurable and is issue a policy when does his coverage become effective Date of issuance of the conditional receipt Which of these is not an underwrite responsibility of life insurance agent Determining the final rate classification When the disclosure of an insured nonpublic information is involved, what is the insurer obligated to do Gives notices, explain and allow option out K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured An agent gives a conditional receipt to a clients for an insurance policy after collecting the initial premium. When will the policy become effective When the condition of the receipt are met The principal source of information concerning an applicant identity, age and marital status is found in the Field underwriting by a producer May result in the disclosure of hazardous activities of the applicant Insurable interest in one own life generally is regarded as Which report contains information regarding an individual general reputation When an applicant applies for a large amount of life insurance coverage, which of the following would likely not be an underwriting requirement An applicant submits a life insurance application where an investigation consumer report is used in the underwritten process which of these statement is true Applicant has a right to receive a copy of the report The initial premium for a life insurance policy is typically paid in what way It's it typically obtain by the producer and for forward to the insurer The reason for backdating a policy is To obtain a premium rate based on an early age The medical information bureau consist of member from which group When does the producer give a premium receipt for a life insurance When the initial premium has been collected with the application Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective Date of issuance of the conditional receipt All of these are duties that a producer may be required to perform when delivering an insurance policy except Leave a conditional receipt with client After an applicant read and sign an insurance application he or she should be conscious of the face that A false statement could lead to loss of coverage In what situation could an insurance policy coverage be modified Applicant is substandard risk Which of these is not considered the responsibility of a producer in the underwriting process Selecting the final approval date A policy owner pays the first annual premium for a 50,000 life insurance policy and dies one mouth after the policy effective date. Which of these statement is normally true Beneficiary receives 50,000 income tax free An agent a conditional receipt to a client for an insurance policy after collecting the initial premium when will the policy become effective When the conditions of the receipt are met Learning about life insurance can be a daunting task, especially if one doesn’t know the meaning of the specialized words, of which there are many. In this life insurance glossary, we have defined many of these terms used throughout this website and, perhaps in your policy). If, at any time you come across an insurance term in LifeInsure.com you don’t understand, come back to this glossary and look up the definition. By knowing the definitions of these terms, your study of the subject should be much easier. Accelerated Death Benefit: This benefit is sometimes part of the policy and sometimes added as a rider. When it’s added as a rider, most insurance companies do not charge an additional premium. It will pay the benefit (sometimes a lesser amount than the death benefit) under certain specified conditions, such as a terminal disease, chronic illness, or long-term care (check your policy for exact conditions and the maximum amount paid). Take note that if this benefit is exercised, it will reduce the actual death benefit by the amount of Accelerated Death Benefit paid. Accidental Death Benefit: The Accidental Death Benefit rider provides for the insurance company to pay a multiple of the policy face amount (usually 2 times) to the designated beneficiary when the insured’s death is the result of an accident which was the direct cause of death. Accidental Death and Dismemberment Benefit: This is a rider that provides for the insurer to pay a stated benefit in case of death or the loss of limbs or sight as a result of an accident. The terms and conditions of the rider will be stated in the insurance contract. Actuary: A professional person trained in mathematics, statistics, and legal-accounting methods, and principles of the operation of insurance, annuities and retirement plans. An insurance company actuary determines, on the basis of existing experience, the monetary value of risk presented by age, sex, health and lifestyle factors. As an example, an actuary can determine the extra cost of risk presented by a cigarette smoker and present the findings to the insurance company to help compute the extra premiums a smoker will pay. Age: For life insurance purposes, the age in years of an applicant or insured. Some companies us the age at the last birthday, while others use the age at the nearest birthday, prior or succeeding. Age last birthday: One method of insurance rating which rates people according to their age as of their last birthday, with such rating held until the next birthday. If your policy is approved at your current age (prior to your next birthday), you will be rated at your current age (as opposed to age nearest birthday). Age nearest birthday: A method used by some insurance companies to compute an insured’s age as that nearest the closest birthday. Therefore, if the insured has passed six months after the last birthday, he or she is considered to be one year older (as opposed to age last birthday). Agent: Anyone who solicits insurance or aids in the placing of and delivering of insurance policies and/or the collection of premiums on behalf of an insurance company. Annual Premium: The total premium amount due on an annual basis to meet the contractual requirements of an insurance policy and to keep it in force. Annual Renewable Term (ART) Life Insurance: Term life insurance that renews on an annual basis. The premiums typically increase every year on the policy anniversary date of the policy. Application: A form supplied by the life insurance company and usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant. The form is signed by the applicant and becomes part of the insurance contract if a policy is issued. The application is reviewed by an insurance company underwriter to consider whether the requested policy will be issued and, if so, in what classification and at what premium rate. Appointment: The authorization of an agent to represent an insurance company. An agent must be appointed by the insurance company in the state(s) business is being written in order to submit a client’s application to the insurance company. In some cases, the insurance company will permit agent contracting paperwork to be submitted along with the first application in that state. Approved: A term referring to an application for life insurance being approved and accepted by the insurance company. The application can either be approved as applied, which means the health class and premium approved matches the original quote; or; approved other than applied, which means your health class and premium will differ from your original quote. This is usually due to information attained by the medical examiner and/or underwriter, which places the applicant in a different health class than what was applied for. Assets: Anything of value that is owned. An insurance company will sometimes request you list your total assets and liabilities on the application to help them evaluate, in conjunction with your income, your need for the amount of death benefit applied for.
Beneficiary: The person (or entity) to whom the proceeds of a life insurance policy are payable when the insured dies. There are various types of beneficiaries (see primary, contingent or secondary and tertiary beneficiaries) Binding receipt: The receipt for payment of the first premium, which assures the applicant that, if he or she dies before receiving the policy, the company will pay the full claims if the policy is issued (or would have been issued) as applied for. Broker: In insurance, one who places business with more than one company and who has no exclusive contract requiring that all his or her business first be offered to a single company. Unlike the agent, who is considered to represent the company, the broker usually is considered as representing the buyer. Burial insurance: A general term usually referring to a small policy of life insurance ($5,000 to $25,000) intended only to meet the final expense needs of the insured. Business continuation insurance: Generally refers to a life insurance policy used to fund a business continuation plan (also see buy-sell insurance). Business Insurance: Life insurance coverage concerned primarily with the protection of an insured’s business or vocation. Business insurance protects a business against the loss of its valuable lives or key executives; stabilizes the business through the establishment of better credit relations; and provides a practical plan for the retirement of business interests in the event of the death of one of the owners. Buy-Sell agreement: An agreement between the owners of a business, which provides that the interest of any one of them who dies shall be sold to and will be purchased by the surviving co-owners or by the business at a value agreed upon by the parties and stipulated in the agreement. Also applies to buyout arrangements between owners and key employees. Carrier: Cash surrender value: See cash value. Cash value: Charitable trust: Child
rider: Collateral assignment: Conditional receipt: Contestable clause: Contestable
period: Contingent beneficiary: Convertible privilege: Cross-purchase agreement: Death Benefit: Decreasing term life insurance: Delivery of policy: Delivery receipt: Disability rider: Dividend: Dividend Additions: Dividend options: Earned income: Effective date: Endorsement: Endow: Endowment: Endowment policy: Estate planning: Estate tax: Evidence of insurability: Examination: Examiner: Face amount: Final expense insurance: Flat extra premium: Free look period: Grace
period: Group life insurance: Guaranteed insurability option: Health Analyzer: Health Class: Impaired risk: Incontestable clause: Independent agent: Initial premium: In-Force: Inspection report: Insurability: Insurable interest: Insurance: Insurance contract: Insurance coverage: Insurance policy: Insured: Insurer: Intestate: Irrevocable beneficiary: Irrevocable Life Insurance Trust (ILIT): The ILIT is both the policyowner and beneficiary. The proceeds received by an ILIT can be used to pay the death expenses, including taxes of the insured. Issue age: Issue date: Joint survivor life insurance: Key person (key man or key employee) life insurance: Lapse: Termination of a policy due to nonpayment of premiums. Lapsed policy: Level premium term life insurance policy: Liabilities: License: Life expectancy: Life
insurance: Life insurance trust: Living trust: Lump sum: Medical examination: Medical Information Bureau (MIB): Modal Premium: Mortality: Mortality Factor: Mortality
Table: Mortgage insurance: Mutual life insurance company: Net worth: No-lapse guarantee rider: Non-medical insurance: Non-participating Policy: Notice of cancellation: Not Taken: Occupational hazard: Paid-up Policy: Paramedical (Paramed) exam: Participating policy: Permanent
life insurance: Policy: Policy anniversary: Policy fee: Policy loan: Policy owner: Preauthorized Check Plan: Preferred risk: Preferred Best risk: Premium: Premium Mode: Primary Beneficiary: Rated: Reinstatement: Renewable Term: Replacement: Return of Premium (ROP) term life insurance: Revocable Beneficiary: Rider: Saving Age: Second-to-die life insurance: Section 1035 exchange: Single premium: Split-dollar
insurance: Upon termination of the plan, while the insured is living, the cash value generally would go to the noninsured to compensate for the portion of premiums paid. Upon the death of the insured, the amount of the proceeds equal to the cash value generally would go to the noninsured, and the balance of proceeds would go to the insured’s beneficiary. This method permits a financially able person (say, a favored employee) to obtain substantial amounts of needed life insurance with a very low premium outlay on his or her part. Standard Risk: Stock insurance company: Stock purchase agreement: Stock redemption agreement: Substandard risk: Suicide clause: Super Preferred risk: Surrender: Survivorship life insurance: Term life insurance: Tertiary beneficiary: Trust: Trustee: Underwriter: Underwriting: Universal life insurance: (back to main Life Insurance Glossary page) Variable universal life insurance: Waiver of premium: Whole life insurance: Yearly Renewable term insurance: Speak with a ProfessionalFor more information, call an insurance professional at LifeInsure.com (866) 868-0099 during normal business hours or contact us through our website. What does initial premium payment mean?Initial Premium — the amount paid at the inception of an insurance contract.
When the first premium is collected at the time of application for a policy the effective date of coverage?Usually, a receipt is issued when the initial premium deposit is collected. Generally, the date of the receipt would be considered the effective date of the policy.
When an agent collects the initial premium from the applicant the agent should issue the applicant a?When an agent collects the initial premium from the applicant, the agent should issue the applicant a? When collecting the initial premium, the agent should issue the applicant a premium receipt.
What is initial premium in life insurance?The initial premium is the first payment an individual makes on any insurance policy. The policy terms dictate the amount of the initial premium. Generally, that payment needs to be made in order for coverage to go into effect.
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