Term and Universal Life & Ethics

Table of Contents

Chapter 1: Defining Life Insurance		1
	Basic Concepts	1
	How Much is Enough?	2
	Calculating Expenses	3
	Consumer Reports Money Book recommends	5
	An Emergency Fund	6
	Child-Care Expenses	6
	Educational Fund	6
	Debt Repayment	7
	Coming to a Conclusion	7
	Insurance Companies Measure Risk	8
	What Type of Life Insurance is Appropriate?	9
	What Will the Insurance Cost?	10
	Term Insurance	11
	Reentry Renewable Level Term	13
	Level Decreasing Term Insurance	14
	Permanent Insurance	15
	Example	17
	Universal Life Insurance Policies	18
	Universal Life Evolution	19
	How Do Universal Life Policies Compare to Traditional Plans?	21
Chapter 2: The Life Insurance Contract		24
	Defining the Contract	25
	Policy Application	25
	Policy Ownership	26
	Preventing Money Laundering Activities	27
	Terrorism Produces Insurer Risk	27
	Legal Requirements Adopted	28
	Broker-Dealer Requirements	30
	AML Program Requirements	31
	Employee training can be in several formats	32
	Know Your Customer (KYC)	34
	Compliance	34
	Suspicious Activity Reports Filing Requirements	35
	A Change in Thinking	35
	Three stages of money laundering	36
	A Global Problem	37
	Covered Products	38
	Nine Identified ML Methods	40
	Money Laundering Indicators Not Unique to Insurance Products	43
	Policyholder Characteristics and Behaviors	44
	A Known Criminal or Criminal Associate or Relative	45
	Erratic or Abnormal Use of Policies	45
	High Premiums Compared to Verifiable Income	46
	Lack of Concern for Charges or Costs	46
	Undue Interest in Payout Options	47
	Change of Beneficiary	47
	Insurance on Assets that Appear Inconsistent with Income	47
	Early or Suspicious Claims	47
	Product Characteristics and Maintenance	49
	Customer Due Diligence (CDD)	51
	In Conclusion	53
Chapter 3: Policy Features and Provisions		54
	Premiums / Policy Options	54
	Nonforfeiture Options	54
	Dividend Options	55
	Settlement Options	56
	State Required Provisions	57
	Incontestability	58
	Misstatements in the Application	59
	Deferment Clause / Nonforfeiture	59
	Loan Values	59
	Grace Periods and Reinstatement	60
	Allowed Policy Provisions	61
	Suicide / Aviation	61
	War	62
	General Provisions	62
	Deduction of Indebtedness and Premium Refund	62
	Change of Beneficiary	62
	Assignment	63
	Beneficiary Designations	63
	Policy Payments	65
	Cash Values	65
	Dividends / Proceeds	66
	Special Clauses	67
Chapter 4: Contract Use		69
	Group Insurance Principles	69
	Eligible Groups	69
	Single Employer Groups	69
	Multiple Employer Trusts (METS)	70
	Unions, Associations, and Other Groups	70
	Creditor-Debtor Groups	70
	Underwriting Advantages	71
	Keeping Current with Business Needs	72
	The Informed Consumer / Providing a Quote	73
	The Contract Participants	75
	The Insurer	75
	The Insured	76
	Insurance Contract	76
	Underwriting and Rating / Finance	77
	A Public Interest	78
	Key Person Insurance	78
	Buy-and-Sell Agreements	79
	The Key Person Principle	80
	Insurable Interest for Life Insurance	81
	Health Insurance on Key Employees and Owners	82
	The Small Company’s Exposure	84
	Loss of the Small Business Owner	84
	Planning Ahead for Death or Disability	88
	Insuring Entities	89
	Private and Government Insurance	89
	Private Insurers	89
	Life Insurance	90
	Property and Liability Insurance	90
	Government Insurance	91
	Voluntary Government Insurance	91
	Compulsory Government Insurance	91
	Mutual Companies	92
	Assessment Mutuals	93
	Non-assessable Mutuals	95
	Conversions	95
	Reciprocal or Inter-Insurer Associations	96
	Stock and Mutual Underwriting	97
	Factory Mutuals	98
	Superior Agents & Brokers	99
Chapter 5: Ethics		102
	Making Choices	102
	Ethics Beyond Philosophers	103
	Being Ethically Responsible	104
	Caring for Others	104
	A Legal Liability / Ethics on the Job	107
	Education Requirements	108
	Responsibility	110
	When We Have Failed to Do Something Important	112
	Setting Up Professional Standards Questions as well as Answers	113 114
	Professional Conduct	116
	Ethics in the Workplace	117
	Ethical Excellence	119
	Asking the Right Questions / Listening:  The Route to Success	121
	Patience, Patience, Patience!	123
	Customer Satisfaction The Difficult Customer	124 125
	Preparing for the Inevitable / Using Specific Language	126
	Family Obligation	128
	Free Choice	129
	Egoism	131
	Objectivist Theory	131
	Cultural Ethics; Perception of Ethics	133
	Moral Persuasion	134
	Rationalizing Morals	135
	Can Ethics Be Taught?	137
	A Moral Habit	138
	Violence in the Name of Ethics	140
	The Addiction to Power	141
	Objective Morality	142
	Avoiding Negativity	144
	Who Is the Teacher?	145
	Are Manners Part of Ethics? / Ethical Investing	146
	Investing in Familiar Products	147
	Searching for Compatible Companies / Personal Involvement	148
	Forcing Change Through Investing	149
	Socially Responsible Investing (SRI) / The Avoidance Investor	150
	Positive Investing Approach	151
	The Activist Investor	153
	Gadflies	154
	Ethical Investing for Profit / Investing in Small Companies	156
	Investing for the Long Term	157
	Early Ethical Investment Trends	158
	Where Does One Begin?	158
	Two Basic Categories of Investments / Know Thyself	159
	Investment Portfolios	161
	Appraising Oneself	161
	Considering Current Financial Status	163
	Future Financial Concerns	163
	Two Portfolios Constants: Change & Deliberateness	164
	Ethical Banking	166
	Credit Unions	166
	Minority Owned Banks	167
	Socially Responsible Credit Card Companies	167

United Insurance Educators, Inc.

PO Box 1030

Eatonville, Washington 98328

mail@uiece.com

(253) 846-1155