Life’s Risks
Table of Contents
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Chapter 1: Insuring from the Beginning |
1 |
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The Patient Protection & Affordable Care Act of 2010 |
1 |
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Background |
1 |
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The Act’s Reforms |
1 |
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Not all Elements of the Affordable Care Act Implemented |
2 |
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Pregnancy and the ACA |
2 |
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Other Elements of the ACA |
4 |
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Chapter 2: Recognizing Life’s Risks |
8 |
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Critical Illness Insurance |
8 |
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The Early Years |
11 |
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529 College Savings Plans |
14 |
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Types of Plans: Savings Plans, Prepaid College |
14 |
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Benefits of 529 Savings Plans |
15 |
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Sport Insurance and Group Event Insurance |
16 |
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Sports Insurance Programs |
16 |
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Special Event Coverage |
17 |
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Travel Insurance; Trip Cancellation Coverage |
20 |
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Credit Card Insurance |
23 |
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Terrorism Insurance |
25 |
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Defining “Act of Terrorism” |
25 |
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TRIA |
26 |
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President Bush Signed the Act |
27 |
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The Role of Terrorism Insurance |
27 |
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Policy Restrictions |
29 |
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Business Interruption Insurance |
29 |
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Workers’ Compensation and Other Coverage |
30 |
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Coverage under Terrorism Insurance |
30 |
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Domestic Terrorism |
36 |
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Hate Crime / Terrorism |
37 |
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Common Insurance Coverage |
39 |
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Life Insurance |
39 |
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Health Insurance |
40 |
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Long-Term Disability Insurance |
40 |
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Automobile Insurance |
41 |
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Chapter 3: Life Insurance |
42 |
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Basic Concepts |
42 |
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Determining Size of Life Insurance Policies |
43 |
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Calculating Expenses |
44 |
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Debt Repayment |
44 |
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Coming to a Conclusion |
45 |
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Insurance Companies Measure Risk |
46 |
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What Type of Life Insurance is Appropriate? |
47 |
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What Will the Insurance Cost? |
47 |
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Term Insurance |
48 |
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Permanent Insurance |
52 |
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Universal Life Insurance Policies |
55 |
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Universal Life Evolution |
56 |
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How Do Universal Life Policies Compare to Traditional Plans? |
57 |
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The Life Insurance Contract |
59 |
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Defining the Contract |
60 |
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Policy Application |
61 |
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Policy Ownership |
62 |
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Preventing Money Laundering Activities |
62 |
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Policy Features & Provisions |
62 |
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Premiums |
63 |
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Policy Options |
63 |
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Dividend Options |
63 |
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Settlement Options |
64 |
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State Required Provisions |
66 |
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Incontestability |
66 |
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Misstatements in the Application |
67 |
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Deferment Clause |
67 |
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Nonforfeiture |
67 |
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Loan Values |
68 |
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Grace Periods and Reinstatement |
68 |
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Allowed Policy Provisions/Suicide/Aviation/War |
69 |
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General Provisions |
70 |
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Deduction of Indebtedness and Premium Refund |
70 |
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Change of Beneficiary |
70 |
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Assignment |
71 |
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Beneficiary Designations |
71 |
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Policy Payments |
73 |
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Cash Values |
73 |
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Dividends/Proceeds/Special Clauses |
74 |
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Contract Use |
76 |
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Group Insurance Principles |
76 |
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Eligible Groups / Single Employer Groups |
76 |
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Multiple Employer Trusts/Unions, Associations & Other Groups |
77 |
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Creditor-Debtor Groups |
77 |
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Underwriting Advantages |
78 |
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Keeping Current with Business Needs |
79 |
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Informed Consumers |
80 |
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Providing Quotes |
80 |
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Contract Participants: The Insurer and The Insured |
82 |
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The Insurance Contract |
82 |
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Underwriting and Rating |
83 |
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Finance |
83 |
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A Public Interest |
84 |
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Key Person Insurance |
85 |
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Buy-and-Sell Agreements |
85 |
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The Key Person Principle |
86 |
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Insurable Interest for Life Insurance |
87 |
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Health Insurance on Key Employees and Owners |
88 |
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The Small Company’s Exposure |
90 |
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Loss of the Small Business Owner |
90 |
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Insuring Entities |
94 |
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Private and Government Insurance |
94 |
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Private Insurers |
94 |
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Life Insurers |
95 |
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Property and Liability Insurers |
95 |
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Government Insurers: Voluntary and Compulsory |
96 |
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Mutual Companies |
97 |
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Assessment Mutuals |
97 |
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Non-Assessable Mutuals |
99 |
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Conversions |
100 |
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Reciprocal or Inter-Insurer Associations |
100 |
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Stock and Mutual Underwriting |
102 |
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Factory Mutuals |
102 |
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Superior Agents and Brokers |
103 |
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Chapter 4: Health Insurance |
106 |
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The Patient Protection and Affordable Care Act |
106 |
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Comparing Then to Now |
112 |
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Long-Term Care Policies (LTC) |
114 |
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Defining Policy Benefits |
115 |
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Care Levels |
119 |
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What Benefit Levels Should be Recommended? |
120 |
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Where is America Headed? |
123 |
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Chapter 5: Disability Insurance |
124 |
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Defining Disability |
124 |
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Who Needs Disability Coverage? |
125 |
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Insuring 100% of Income |
126 |
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Determining Coverage Levels |
126 |
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Waiting Periods |
128 |
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Benefit Longevity |
128 |
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Chapter 6: Auto Insurance |
130 |
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The Automobile Insurance Policy |
130 |
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Underwriting Risk |
131 |
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Six Policy Components in Auto Insurance |
131 |
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Rising Premium Rates |
132 |
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Insuring a New Vehicle |
133 |
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Insuring Classic Cars |
134 |
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Delivery Drivers |
136 |
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RV Insurance |
137 |
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Motorcycle Insurance |
137 |
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Mechanical Breakdown Insurance (MBI) |
138 |
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Car Rentals During Foreign Travel |
139 |
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Pay-As-You-Go Policies |
140 |
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Safe Drivers Pay Less for Auto Insurance |
140 |
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A New Issue for Insurers: Legalized Marijuana |
142 |
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Distracted Driving |
144 |
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Teenage Drivers |
147 |
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Affordable Coverage |
149 |
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Perils & Hazards |
153 |
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Reading the Auto Policy |
155 |
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Conditions in an Auto Policy |
156 |
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Family Automobile Policy (FAP) |
158 |
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Auto Liability Insurance |
159 |
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Property Damage Liability Insurance |
161 |
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Medical Auto Insurance |
161 |
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No-Fault Insurance |
162 |
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Personal Injury Protection (PIP) |
164 |
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Collision |
164 |
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Comprehensive Coverage |
165 |
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Auto Insurance for School-Sanctioned Events |
166 |
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Uninsured and Under-Insured Motorists Coverage |
166 |
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Driving Uninsured: No-Pay, No-Play Laws |
167 |
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Towing and Service or Rental Car Reimbursement |
168 |
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Wage Loss and Substitute Services Coverage |
168 |
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Determining Auto Insurance Rates |
168 |
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When an Auto Accident Occurs |
170 |
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Broad Form Auto Insurance |
170 |
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Insuring Above All Other Liability Policies |
172 |
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Single-Limit Policies/Split-Limit Policies |
172 |
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Umbrella Policies |
173 |
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Judging Liability Insurance Amounts |
173 |
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Property Damage/Wage Loss & Substitute Services |
174 |
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Reviewing an Issued Policy for Correctness/Negligence Laws |
174 |
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Three Types of Negligence |
175 |
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Loss-Adjustment Provisions |
175 |
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Notice of Loss/Processing an Automobile Claim |
176 |
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Auto Insurance Fraud |
178 |
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Chapter 7: Homeowner’s Insurance |
182 |
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Renter’s Insurance |
182 |
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Insuring Your Home |
182 |
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Section I of Form #1 |
186 |
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Form #2 |
188 |
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Form #3 |
188 |
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Form #4 |
190 |
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Form #5 |
190 |
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Form #6 |
191 |
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Form #8 |
191 |
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Exceptions |
192 |
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Natural Disasters |
193 |
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Volcanoes/Hurricanes and Tornadoes |
195 |
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Personal Property |
196 |
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Umbrella Insurance |
197 |
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Homeowner’s Liability Insurance |
199 |
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Old Problems and New Trends: Assignment of Benefits |
201 |
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Chapter 8: Annuities |
206 |
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Defining an Annuity |
206 |
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Annuity Choices: Joint & Survivorship/Guaranteed and Lifetime/Level Annuities |
207 |
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Capital-Back Annuities/Escalating Annuities/Inflation-Linked Annuities/Enhanced Annuities |
208 |
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Annuity History |
209 |
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Annuity Terminology |
212 |
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Annuity Basics |
216 |
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Choosing Between Fixed and Variable Annuities |
216 |
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Choosing Between a Lifetime Annuity and Term Annuity |
217 |
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Company Financial Strength |
219 |
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Annuity Extras: Principal Protection/Cost of Living Protection |
219 |
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The Ups and Downs of Annuities |
220 |
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Tax Efficiency/Supplementing Other Retirement Income |
220 |
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Reasons to Buy an Annuity/Reasons to Avoid Buying Annuities |
221 |
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Making the Right Annuity Choices |
222 |
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Multiple Annuity Choices |
223 |
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Annuities for Retirement |
224 |
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Everyone is Living Longer these Days |
225 |
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Putting Off Retirement |
225 |
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Fixed Rate Annuities |
227 |
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How Fixed-Period Annuities Work |
227 |
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Variable Annuities |
229 |
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Annual Expenses |
229 |
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Funding Variable Annuities/Variable Annuity Fees |
230 |
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Variable Annuity Death Benefit/Surrender Fees/Early Withdrawal/Taxation |
231 |
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Equity-Indexed Annuities |
231 |
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Chapter 9: Anti-Money Laundering |
233 |
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Terrorism Produces Insurer Risk |
233 |
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Legal Requirements Adopted |
234 |
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Broker-Dealer Requirements |
236 |
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AML Program Requirements |
237 |
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Know Your Customer (KYC) |
239 |
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Compliance |
239 |
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Suspicious Activity Reports Filing Requirements |
240 |
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Agents Must Now be Vigilant |
240 |
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A Global Problem |
242 |
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Covered Products |
243 |
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9 Identified Money Laundering Methods |
245 |
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Money Laundering Indicators Not Unique to Insurance Products |
247 |
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Policyholder Characteristics and Behaviors |
248 |
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A Known Criminal or Criminal Associate or Relative |
249 |
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Erratic or Abnormal Use of Policies/High Premiums Compared to Verifiable Income |
250 |
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Lack of Concern for Charges or Costs |
251 |
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Undue Interest in Payout Options/Change of Beneficiary |
251 |
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Insurance on Assets that Appear Inconsistent with Income/Early or Suspicious Claims |
251 |
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Product Characteristics and Maintenance |
253 |
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Customer Due Diligence (CDD) |
255 |
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Chapter 10: Identity Theft Insurance |
257 |
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Identity Theft Defined |
258 |
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Mortgage Fraud |
262 |
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Civil Liability for Mortgage Fraud |
263 |
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Identity Theft and Assumption Deterrence Act |
264 |
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Factors for Consideration |
264 |
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Technical Amendments to Title 18, United States Code |
265 |
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Insurance Identity Theft |
265 |
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When Insurance Theft Occurs /Insurance Statistics |
266 |
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Sample Policy |
267 |
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Chapter 11: Debt Affects Insurance |
277 |
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Debt Affects Premium Rates |
277 |
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Changing the Spending Pattern |
280 |
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When 20 percent is not actually 20 percent |
284 |
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Chapter 12: Employment Practices Liability Insurance |
286 |
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Potential Interview Mistakes |
287 |
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Negligent Hiring Liability |
288 |
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A Policy Overview |
290 |
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Do Employers Really Need EPLI? |
292 |
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Low-Cost Protection |
295 |
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New Technology Firms/All Companies are Vulnerable |
296 |
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Educating the Employers |
297 |
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Chapter 13: Ethical Insurance Practices |
299 |
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Ethic Subject Matter for Continuing Education |
299 |
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Meeting Education Requirements in a Timely Manner |
300 |
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The Doctrine of Utmost Good Faith (Breach of Utmost Good Faith) |
302 |
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Duty of Disclosure |
302 |
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Representations and Warranty/Representations/Warranty |
303 |
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Action Taken by Insurer Against a Breach |
304 |
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Principle of Waiver and Estoppel |
304 |
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Guaranty Associations |
304 |
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Knowledge of the Product |
310 |
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Ethics from an Agent’s Standpoint: Introducing narrator Harry Bobs |
311 |
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It is a Matter of Perspective |
312 |
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Establishing Ethical Goals |
314 |
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Why Be Ethical? |
317 |
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Following the Laws |
318 |
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Ethics in the Workplace |
318 |
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The Same by Any Name |
319 |
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Putting the Past into the Future |
320 |
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Personal Values |
321 |
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Companies Set Guidelines |
323 |
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Promoting Ethical Behavior |
328 |
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Is It Possible to Teach Ethical Behavior to Others? |
331 |
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What is the Scope of Ethics? |
331 |
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What Does it Take to be a Moral Person? |
332 |
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What Quality of Work do you Want to Perform? |
333 |
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What do I Want my Legacy to be? |
333 |
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The Leaders of the Pack |
334 |
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What are our Responsibilities to Other Moral Persons? |
336 |
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Objectivist Ethics |
337 |
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Holding on to our Ethical Code |
338 |
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Looking the Part |
344 |
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Courtesy |
344 |
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Mores |
345 |
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Mores are Established Patterns of Action to which an Individual is Expected to Conform |
346 |
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Education |
349 |
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Getting Education in a Timely Manner |
350 |
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Product Knowledge |
350 |
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Laying Out Policy Benefits and Limitations |
352 |
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Policy Replacement |
354 |
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Why Agents Replace their Own Business |
354 |
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When Agents Allow Misconceptions |
355 |
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When the Client Thinks the Premiums are too High |
356 |
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Obtaining Proper Application Signatures/Keeping in Touch After the Sale |
357 |
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Selling “Fast Buck” Items |
358 |
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Commingling Funds/The Professional |
359 |
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Preparing for Tomorrow |
360 |
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Due Diligence |
361 |
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Legal Versus Moral |
369 |
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Last page: |
372 |
United Insurance Educators, Inc.
PO Box 1030
Eatonville, WA 98328
(253) 846-1155
Email: mail@uiece.com