Chapter 1:  Seeking Security

     Insurance is Part of Life’s Planning

          Liquid and non-liquid assets

     Personal Assets / Life Stages

1

2

3

4

Chapter 2:  Insurance and Risk

          Risk Takers (Survey)

     Determining Financial Status (Net Worth)

8

12

15

     Insurance and Financial Goals

19

     Insurance Objectives

20

     Estimating Requirements

22

     Charting Strategies

24

     Insurance Risk and the Unexpected

25

Chapter 3:  Determining Suitable Products

     Reaching Goals Logically / Asset Allocation

     Annuity Asset Allocation

     Inaction: Nothing Ventured, Nothing Gained

     Everyone’s Problem

28

29

30

31

32

     The Self-Taught Investor / Making Decisions

33

     The Relationship of Risk to Return

35

     Types of Risk / Inflation: The Silent Reducer

37

     Deflation / Business Risk

38

     Interest Rate Risk / Market Risk / Illiquidity Risk

39

     Minimizing Risk

40

     The Beginner

41

     Personal Assets versus Investment Assets / Assessing Emergency Cash Funds

42

     Cash Value Life Insurance Contracts are Assets / Diversification / Hard Assets

43

     The Role Insurance Plays in Investing

44

          Laddering Annuities

45

Chapter 4:  Annuity Suitability Requirements: NAIC Requirement

     Investment Vehicles

     The Test of Time

     Finding the Right Products

     Using Annuities Effectively / Investment Safety / Funding Retirement

     Structured Settlements / Beneficiary Designated Money / Probate Avoidance

     Old Money; New Money / Annuity Participants / Types of Annuities

     Judging How Long the Annuity Income Must Last

     Data from the National Vital Statistics System on Mortality

     Categorizing Annuities

     Benefit Payment: Immediate Annuities / Deferred Annuities / Split Annuities

48

48

49

50

52

53

54

55

57

58

59

     Payment Methods: Single Premium Annuities / Flexible Premium Annuities

60

     Annuity Type Based on Policyowner Risk / Variable Annuities

61

     Fixed Annuities / Declared Rate Fixed Annuities

62

     Indexed Fixed Annuities / Two-Tiered Annuities

63

     Fixed Rate Annuities

64

     Equity Indexed Annuities

67

     Variable Annuities

69

          Annual Expenses / Funding Variable Annuities

70

     Variable Annuity Death Benefit / Contract Provisions Affect Consumers

71

     Annuity Surrender Values and Penalties

72

     Guaranteed Rates of Return

74

          Important EIA Fact

76

     Index Crediting

77

     Participation Rates

78

     Averaging

79

     Caps / Spreads, Margins and Administrative Fees / Returns

80

     Indexing Formulas

82

     Annual Reset Indexing Method / High Water Mark Indexing Method

83

     Point-to-Point Indexing Method

84

     Multiple EIAs with Diversified Indexing Methods / Withdrawing Annuity Funds

85

     Payout Options

86

          Nonhuman Payees Under a Settlement Option / Lifetime Income Payout Option

87

          Life Annuity, Period Certain Payout Option

88

          Joint-and-Last-Survivor Payout Option / Required Distribution

89

          Taxation / Qualified and Non-Qualified Annuity Annuitization

90

          ERISA and Tax-Favored Retirement Plans / Using Annuities in Tax-Favored Plans

91

          IRS Requirements for Annuity Funding

92

     Financially Sound Insurers

93

     State Guaranty Associations / State Mandated Annuity Suitability Standards

95

          Determining Suitability

96

          Sales Practices / Product Replacement / Deceptive Sales Forbidden Practices / Full Disclosure

98

          Product Knowledge / Identifying Suitability Issues

99

     It is Not a Liquidity Issue, But Rather a Suitability Issue

100

     A Comprehensive Financial Plan

101

          Laddering

102

     Tax-Deferred Status

105

     Tax-Deferral Exception / Exchanges / Annuity gifts

107

     Other Tax Issues / Annuities are (Sometimes) Protected Assets

108

     Probate

109

     Sometimes an Annuity is a Bad Idea / Considering Applicant Age / Surrender Penalties

110

     Grasping Fundamental Aspects of the Product

111

          Basic Information Requirements

112

     Terminology for Equity Indexed Annuity Products

113

     General Contract Provisions / Entire Contract

116

          Changes & Waivers / Misstatements / Required Reporting

117

          State Law / Claims of Creditors / Other Contract Items

118

     Additional Payments

119

     In Conclusion

120

Chapter 5:  Identity Theft Insurance

     Identity Theft Defined

          What Thieves Look For (list)

121

122

125

          Mortgage Fraud

126

     Identity Theft and Assumption Deterrence Act

127

          Factors for Consideration

128

          Technical Amendments to Title 18, United States Code

129

     Insurance Identity Theft

129

     When Insurance Theft Occurs / Insurance Statistics

130

     Sample Identity Theft Policy

131

          Definitions of ‘Covered Accounts’ and ‘Red Flag’

139

     Debt Affects Premium Rates

141

          Changing the Spending Pattern

142

     When 20% is Not Really 20% (credit card interest rates)

147

Chapter 6:  Safety Through Insurance

     The Patient Protection and Affordable Care Act

     The Affordable Care Act Today

     Changes in the Law Affect Health Care

     Adverse Selection

       Dealing with the Results

     H.R.1 (115) Tax Reform Law

     Other Affordable Care Act Changes

     Small Businesses & Self-Employed

     Work Requirements Requested by Some States

     Five Modifications to the ACA

   Long Term Care Policies

149

150

150

151

152

153

153

154

154

157

158

159

     Defining Policy Benefits

161

        Daily Benefit, Waiting Period

161

        Maximum Benefit Period, Type of Facility, Indemnity Policies

162

        Homebound, Prior Hospitalization

163

        Gatekeepers, Inflation Protection, Preexisting Conditions

164

        Level Premium, Waiver of Premium

165

     Care Levels

165

     What Benefit Levels Should Be Recommended?

166

        Price of LTC may vary

168

Chapter 7:  Life Insurance

     What Is A Life Insurance Policy?

          Life Insurance Needs: worksheet

     Planning for The Future Through Estate Creation

     Life Insurance Trusts

     Life Insurance for Estate Planning

     Types of Life Insurance / Term Insurance

          Whole Life Insurance

          Endowment Insurance Policies / Universal Life Insurance Policies

          Variable Life Insurance Policies

          Survivorship Life Insurance / Single Premium Whole Life Policies

     Annuities

     Qualified Longevity Annuity Contracts (QLAC)

     Annuity Advantages

     Individual Retirement Accounts (IRA)

169

170

171

172

174

179

180

181

182

183

184

185

189

191

192

Chapter 8:  Protecting Assets Through Insurance

     Bodily Injury Liability

     Property Damage Liability / Medical Payments Coverage

     Uninsured Motorists / Collision

     Comprehensive Physical Damage / No-Fault Laws

     To Tell Or Not To Tell / Insuring Our Greatest Investment: Home Sweet Home

194

194

195

196

197

199

          Form 1 / Form 2

200

          Form 3 / Form 4 / Form 5 / Form 6

201

     Earthquake Coverage

202

          Fracking-Induced Earthquakes

203

          Fracking Terminology

204

     Flooding / General Homeowner Coverage

209

          Floaters / Umbrella Policies

210

Chapter 9:  NFIP Flood Insurance

     NFIP Training for Agents

     The National Flood Insurance Program

     Now Under the Department of Homeland Security

     Community Participation

     Emergency Program

     Regular Program / Community Rating System

     Building Eligibility / Coastal Barrier Resources System & Other Protected Areas

     Defining Special Flood Hazard Area (SFHA) / 100-Year Floods

     Flood Insurance Rate Map (FIRM)

     Base Flood Elevation (BFE) / Zone Determination

     Types of Buildings for Flood Insurance

          Dwelling Form / General Property Form / Residential Condominium Building Assoc.

     Preferred Risk Policy

     Loss Avoidance Measures / Debris Removal

     Improvements and Betterments / Deductibles / Property Value Determination for Coverage

          Actual Cash Value / Replacement Cost Value

211

211

212

213

215

216

217

218

219

220

221

222

223

223

224

225

226

     Co-Insurance Penalty in RCBAP / Filing Claims

227

     Appeals Process / Reduction and Reformation of Coverage / Policy Waiting Period

228

     Policy Term / Cancellations

229

     No Policy Covers Everything

230

     Single Peril Policy / Mudslides versus Mudflows

231

     Covered Property / Basements / Appurtenant Structures / Increased Cost of Compliance

232

     Write Your Own (WYO) Program / The Biggert-Waters Flood Ins. Reform Act

233

     Title II Flood Insurance / Flood Insurance Reform and Modernization Act

235

     Availability of Insurance for Multi-Family Properties

235

     Reform of Premium Rate Structure / Program Expiration

236

     Availability of Insurance for Multi-Family Properties / Reform of Premium Rate Structure

236

     Estimates of Premium Rates

237

     Increase in Annual Limitation on Premium Increases / Premium Payment Flexibility

238

     Premium Adjustment / Enforcement / Escrow of Flood Insurance Payments

238

     Limitation / Minimum Deductibles for Claims under the NFIP

239

     Considerations in Determining Chargeable Premium Rates

239

     Reserve Fund, Maintenance of the Reserve Ratio / Repayment Plan Required for Flood Debt

240

     Payment of Condominium Claims / Technical Mapping Advisory Council

241

     National Flood Mapping Program

243

     Communication and Outreach / Community Remapping Requests

244

     Scope of Appeals / Scientific Resolution Panel

245

     Removal of Limitation on State Contributions for Updating Flood Maps / Coordination

246

     Interagency Coordination Study

246

     Notice of Flood Insurance Availability under RESPA

247

     Participation in State Disaster Claims Mediation Programs

247

     Oversight and Expense Reimbursements of Insurance Companies / Mitigation

248

     Flood Protection Structure Accreditation Task Force / Flood in Progress Determinations

249

     Clarification of Residential and Commercial Coverage Limits / Local Data Requirement

250

     Eligibility for Flood Insurance for those who made Adequate Progress on Reconstruction

250

     Studies and Reports / Report on Improving the NFIP

251

     Report of the Administrator on Activities under the NFIP / GAO Study on Pre-FIRM Structures

252

     GAO Review of FEMA Contractors

253

     National Academy of Sciences Study & Report on Graduated Risk / Contents of Study

254

     Reinsurance / FEMA and GAO Reports on Privatization / Private Risk-Management Initiatives

255

     Reinsurance Assessment / Private Market Pricing Assessment

255

     GOA Study on Business Interruption & Additional Living Expenses Coverage

256

     Policy Disclosures / Report on Inclusion of Building Codes in Floodplain Management Criteria

257

     Study of Participation and Affordability for Certain Policyholders

258

     Study and Report Concerning the Participation of Indian Tribes and Members in NFIP

258

     Use of Private Insurance to Satisfy Mandatory Purchase Requirement

259

     Levees Constructed on Certain Properties

259

     Insurance Coverage for Private Properties Affected by Flooding from Federal Lands

260

     Treatment of Swimming Pool Enclosures Outside of Hurricane Season

260

     CDBG Eligibility for Flood Insurance Outreach Activities & Community Building Code Grants

261

     Termination of Force-Placed Insurance

261

     FEMA Authority on Transfer of Policies / Reimbursement of Certain Expenses

262

     FIO Study on Risks, Hazards, and Insurance

262

     Flood Protection Improvements Constructed on Certain Properties

263

     No Cause of Action / Alternative Loss Allocation

264

     Assessing and Modeling Named Storms Over Coastal States

265

     Other Legislation

266

     Contact Information

267

Chapter 10:  Employer Sponsored Insurance Benefits

     Funeral Benefits / Dental Insurance

268

268

     Disability Income Benefits / Life Insurance

269

     Medical Insurance

270

     Characteristics of Group Insurance

271

     Group Plan Incentives

273

     History of Group Health Insurance

275

     Self-Insured Plans

277

     Specific Eligible Groups

278

     Types of Medical Plans

280

     Health Maintenance Organizations (HMO)

282

     Model Group Life Insurance

284

     Group Contract Termination

290

     Pension Plans

291

     The Insurance Consultant

295

     Flexible Spending Accounts (FSA)

296

     After Retirement

297

     Income and Longevity Concerns

299

Chapter 11:  Unfair Trade Practices

302

     Purpose / Legislative History

302

     Insurance Activities Other than Sales

305

     Financial Activities Other than Insurance / Nondiscrimination

306

     Limitation / Definitions

307

     United States v Southeastern Underwriters Association

308

     Developing Legislation

310

     Gramm-Leach Bliley Act: Key Points

311

     Is It Still Relevant?

313

     Section 4: Unfair Discrimination

319

       Rebates

321

          Not everything is considered a rebate

322

       Prohibited Group Enrollments / Failure to Maintain Marketing and Performance Records

325

       Failure to Maintain Complaint Handling Procedures

326

       Misrepresentation in Insurance Applications / Unfair Financial Planning Practices

326

       Failure to File or Certify LTC Sales

327

       Failure to Provide Claims History

328

     Section 5. Favored Agent or Insurer, Coercion of Debtor

338

     Section 7. Defined and Undefined Practices

339

     Section 8. Cease-and-Desist and Penalty Orders

340

     Section 9. Judicial Review of Orders

341

     Section 11. Penalty for Violation of Cease-and-Desist Orders

341

     Section 12. Regulations

341

Unfair Travel Discrimination

341

     Insurers classify risk based on the country / ‘A’ Countries

344

          ‘B’ Countries / ‘C’ Countries / ‘D’ Countries

345

     Favored Agent or Insurer

348

Chapter 12:  Insurance Ethics

349

     Ethics Defined / Ethic Subject Matter for Continuing Education

349

     Meeting Education Requirements in a Timely Manner

350

     The Doctrine of Utmost Good Faith / Breach of Utmost Good Faith / Duty of Disclosure

352

     Representations and Warranty / Representations / Warranty

353

     Principle of Waiver and Estoppel / Guaranty Associations

354

     Knowledge of the Product

360

     Ethics from an Agent’s Standpoint: Introducing Harry Bobs

361

     It is a Matter of Perspective

362

     Temptation / Lack of Understanding / Optimism

363

     Establishing Ethical Goals

364

     Why Be Ethical?

367

     Following the Laws / Ethics in the Workplace

368

     The Same by Any Name (Values and Morality)

369

     Putting the Past into the Future

370

     Personal Values

371

     Companies Set Guidelines

373

     Promoting Ethical Behavior

379

     Is It Possible to Teach Ethical Behavior to Others?

381

     What Is the Scope of Ethics?

381

     What Does it Take to be a Moral Person?

382

     What Quality of Work do you Want to Perform?

383

     What Do I Want my Legacy to be?

384

     Leaders of the Pack

384

          Example #1 / Example #2

385

     What are our responsibilities to other moral persons?

386

     Objectivist Ethics

388

     Holding on to our Ethical Code

389

     Looking the Part

394

     Courtesy / Mores

395

     Mores are established patterns of action to which an individual is expected to conform.

396

     Education

399

     Getting Education in a Timely Manner

400

     Product Knowledge

401

     Laying Out Policy Benefits and Limitations

402

          Minimizing misunderstandings

403

     Policy Replacement

404

     Why Agents Replace Their Own Business

405

     When Agents Allow Misconceptions

406

     When the Client Thinks the Premiums are Too High / Obtaining Proper Application Signatures

407

     Keeping in Touch after the Sale / Selling “Fast Buck” Items

408

     Commingling Funds

409

     The Professional / Preparing for Tomorrow

410

     Financial Management

411

     Due Diligence

412

     If It’s Legal . . .

420

     End of Course

423