Life, Accident and Health (Life Agent) Key Facts - 2014 Insurance and Securities School of California
A representation may be altered or withdrawn before the insurance is effected, but not afterwards.
With regard to long-term care insurance, all insurers, brokers, agents, and others engaged in the business of insurance owe a policyholder or a prospective policyholder a duty of honesty, and a duty of good faith and fair dealing.
If the premium for a group disability income policy is fully paid by the employee benefits would be excluded from the employee
s gross income (not taxable).
In life insurance insurable interest must exist when a policy is first issued.
In life insurance, the measure of liability is the sum or sums payable as provided in the policy to the person entitled thereto.
The Insurance Commissioner shall be elected by the people in the same time, place and manner as the Governor.
Under the CIC all advertisements, policies and certificates of term life insurance sold to those age 55 and older must include a term life insurance monetary value index, which is similar to the Life Insurance Surrender Cost Index. In developing a term life insurance monetary value index, the commissioner shall consider actual premiums and policy and certificate benefits and the manner in which they are affected with the passage of time. Any term life insurance monetary value index developed pursuant to this section shall assume an insured's desire to retain coverage for at least 10 years.
Term life insurance directed to individuals 55 years of age or older must prominently disclose any change in premium resulting from the aging of the insured, policy duration, or any other factor. If the insurer retains any right to modify premiums in the future, that fact shall also be disclosed.
The Social Security Blackout period is a period of time when surviving family members are NOT eligible for Social Security survivors benefits (survivors benefits stop during this period).
The Social Security Blackout period begins when the youngest child reaches age 16.
The Social Security Blackout period ends when the surviving spouse reaches age 60.
Social Security full retirement age is based upon the year in which you were born.
Retirement benefits under Social Security are only available to workers who are fully insured.
An Employee Stock Ownership Program (ESOP) is a qualified, defined contribution, employee benefit plan designed to invest primarily in the stock of the sponsoring employer.
A profit sharing plan is a plan that gives employees a share in the profits of the company. Each
employee receives a percentage of those profits based on the company’s earnings.
A speculative risk is a risk situation that includes a chance of loss and a potential for gain. Speculative risks are not insurable.
The premium is the amount the insured pays the insurer for the coverage provided.