How can an agent-in-charge have more than one location?
Multiple locations are allowed as long as the agent-in-charge is present when insurance activity occurs
.
What is the required minimum percentage of employee participation for a noncontributory group?
Most noncontributory group health plans require
100%
participation by eligible members.
Who does an agent represent during the solicitation of insurance?
Also known as business entity. Agent –
An individual licensed and appointed by an insurance company to sell, solicit or negotiate insurance
. Agent, Captive – An agent of a specific insurance company with the responsibility for selling insurance. Represents only one company.
Which of the following document must an agent submit to the replacing insurance company during the replacement of an existing life insurance policy?
An agent involved in a replacement transaction must submit to the replacing insurer
a statement signed by the applicant regarding any existing life insurance
. This statement usually is part of the insurance application.
How can an agent in charge have more than one location quizlet?
How can an agent-in-charge have more than one location?
Multiple locations are allowed as long as the agent-in-charge is present when insurance activity occurs
.
When a replacement is involved in an insurance transaction an agent must do all of the following?
(b) Where a replacement is involved, the agent shall do all of the following: (1)
Present to the applicant, not later than at the time of taking the application, a “Notice Regarding Replacement of Life Insurance” in the form as described in subdivision (d)
.
What happens when an insurance policy is backdated?
What happens when an insurance policy is backdated? Backdating your life insurance policy
gets you cheaper premiums based on your actual age rather than your nearest physical age or your insurance age
. You'll pay additional premiums upfront to account for the policy's backdate.
How many eligible employees must be included in a contributory plan?
Under a contributory group plan, you are expected to pay part of the premium for group life insurance. To avoid adverse selection, the insurer typically requires that
at least 75 percent
of eligible employees participate in the plan.
How does underwriting differ between group and individual life insurance?
One difference between group and individual life insurance underwriting is that
medical questions must be answered on ind ividual life insurance
. “$50,000”. The IRS requires the cost of employer-provided group life insurance above $50,000 to be taxable as income to the employee.
The law recognizes 3 types of authority:
apparent authority, express authority, and implied authority
. There is no presumption of an agency relationship. There must be explicit evidence that the agent represents the insurer..
What are the kinds of agents in insurance?
- Independent,
- Captive, and.
- Micro Finance.
How is the relationship between an insurer and an agent created?
Agency involves three parties: the principal, the agent, and a third party. The principal. (insurer) creates an agency relationship with a second party
by authorizing him or her to make contracts with third parties (policyholders) on the principal's behalf
.
When replacement is involved the agent is required to do what?
(2) If replacement is involved: (i) Require from the agent or broker with the application for life insurance or annuity
a list of all the applicant's existing life insurance or annuity to be replaced
, and a copy of the replacement notice provided the applicant under § 81.4(b)(1) (relating to duties of agents and …
When replacing existing life insurance an agent must?
1.
Inform its field personnel of the requirements regarding replacement transactions
. 2. Require that agents submit, with every application for life insurance or annuity, a statement signed by the applicant indicating if the proposed policy will replace any existing life insurance or annuity.
Which rule would apply if an agent knows an applicant?
Reinstatement rule
. B— Replacement rule Explanation: The Replacement rule applies when it is known by the proposing agent that existing life insurance has been or is to be lapsed, forfeited, surrendered, or otherwise terminated because a new policy is being purchased.
What is Florida's definition of life insurance replacement?
What is Florida's definition of Life insurance replacement?
A transaction in which coverage on an existing policy is increased
. A transaction in which group life coverage is converted to an individual policy.
Why does Florida have state laws regulating Medicare supplement insurance quizlet?
Why does Florida have state laws regulating Medicare Supplement Insurance?
the NAIC model with regard to the federal standard Medigap forms
. State laws are introduced for enforcement purposes, as states cannot enforce and prosecute federal laws, only state laws.
What is primarily controlled business?
Business over which an agent is able to exercise his or her personal influence
. Generally, such business includes the agent's company, employees and immediate family. Most states limit the amount of controlled business which may be written by an agent.
What is twisting in the insurance industry?
Twisting — the act of inducing or attempting to induce a policy owner to drop an existing life insurance policy and to take another policy that is substantially the same kind by using misrepresentations or incomplete comparisons of the advantages and disadvantages of the two policies.
What does churning mean in insurance?
Churning is
another sales practice in which an existing in-force life insurance policy is replaced for the purpose of earning additional first-year commissions
. Also known as “twisting,” this practice is illegal in most states and is also against most insurance company policies.
What is the replacement rule in insurance?
A replacement occurs when a new policy or contract is purchased and, in connection with the sale, you discontinue making premium payments on the existing policy or contract, or an existing policy or contract is surrendered, forfeited, assigned to the replacing insurer, or otherwise terminated or used in a financed …
Is it illegal to backdate an insurance policy?
Backdating means coverage of your benefits is made retroactively effective by your insurance provider. Wouldn't it be great if we could all purchase retroactive coverage? As a general practice,
it is illegal
. A health insurance carrier will only backdate insurance coverage in some scenarios.
Can an insurance company back date?
It is legal to backdate a life insurance policy by up to 6 months
to help you get the lowest rate allowed for that age. While that can theoretically save you money, you need to realize that you'll have to pay the premiums for the months covered by the backdate.
What is the reason for backdating a policy?
From the applicant's perspective, the primary motivation for backdating is the
reduction in premium
that occurs because the premium is based on an age less than the applicant's life insurance age at the time of application.
Which statement best defines a multiple employer welfare arrangement?
Also described as a “multiple employer trust (MET),” a multiple employer welfare arrangement
happens when a group of employers combines their contributions in a self-contributing benefits plan for the benefit of their employees
.
How many employees do you need for group life insurance?
For an employer to qualify for group life insurance, your company must have
at least two full-time employees
who work a minimum of 30 hours per week.
What percentage is required for participants in a contributory group plan?
Typically, noncontributory plans require 100% employee participation; contributory plans usually require approximately
75%
participation.
