Allen

• Benefits payable under health insurance policies

  • Accidental death and dismemberment benefits
  • Expense reimbursement benefits
  • Disability income benefits
• With employer-employee groups, an employee does not fill out a personal application for insurance. Instead he merely fills out an enrollment card.
• Conversion privilege


  When an employee leaves the company, his group coverage can be changed to an individual policy
• For a contract to be legal and binding

  • Parties to the contract must be legally competent
• Requirements for a contract to take effect

  • The policy is delivered to an insured, his assignee or agent, or to a beneficiary
  • Payment of the first premium is made to the insurer or its authorized agent
  • No change has taken place in the insurability of the life to be insured between the time the application was completed and the time the policy was delivered
• Someone who owes you money cannot become a beneficiary
• Irrevocable beneficiary

  Any person with insurable interest can be named irrevocable beneficiary
• Proceeds of a life insurance policy left with the company to earn interest

  Income tax is levied on the interest earnings of the proceeds
• Persons with insurable interest on the life of another


  • His child or grandchild
  • Any person upon whom he is wholly or in part dependent on, or from whom he is receiving support or education
  • Any person in whom he has pecuniary interest
• Creditors cannot be designated as beneficiaries
• Life insurance goes into force

  When the agent gives a binding receipt
• A common-law spouse cannot be designated a beneficiary if his/her legal partner is still living and the previous marriage has not been legally dissolved
• Policy reserves


  Future obligations on the part of the Insurance Company
• Provisions in a permanent life insurance policy that may lapse for non-payment of premium

  • Guaranteed Insurability
  • Automatic Premium Loan
  • Settlement Options
  • Reinstatement Provision
• Ways a policyholder may obtain money from the insurance company and still remain insured

  • Surrendering the policy for its cash value
  • Taking a policy loan
  • Taking the extended insurance option
• When you stated incorrect ages on the insurance policy

  The insurance company will pay the face amount adjusted for misstatement of age
• If the policy did not contain the name of a beneficiary


  The beneficiary will be the insured's estate
• If a policyowner whose wife is the irrevocable beneficiary wishes to cash in his policy, he must have the wife's consent
• If a policy with the accidental death rider becomes paid up, the accidental death rider ceases
• Annuity plan


  Is a purchase of income
• The person who purchases the annuity plan


  Is called the annuitant
• Statements made on the insurance applications are not warranties
• Requirements for an insurance agent's license


  • A clean record of employment
  • A reasonable educational background
  • A prospective agent's character and reputation
• IC's power to adjudicate insurance claims

  Not exceeding 500,000.00
• Insurable interest


  Must exist throughout the entire lifetime of the policy
• For the sale of a life insurance policy to be considered completed, payment of the first premium has to be made in full and in cash
• Automatic premium loan


  Goes into effect requiring no separate action from the policyowner
• Grace period provision in a life insurance policy

  Allows the policyowner a three-month extension beyond the due date to make the late premium payment without penalty
• Absolute assignment of a policy

  The assignee acquires all the rights and interests of the original policyholder
• If policyowner does not pay a premium on the due date, the policy will continue in full force for a period of grace
• Dividends on a participating policy with a loan

  Will be unaffected