J is a producer who has induced an insured through misrepresentation to surrender an existing insurance policy. What is J guilty of?
Twisting
What is implied authority defined as?
Authority that is not specifically given to an agent contract, but that an agent can reasonably assume to carry out his/her duties
A person who is a nonsmoker, average weight, excellent health would fall into what risk classification?
Preferred
Which of the following is considered to be the period when the accumulated value in an annuity is paid out?
Annuitization phase
An insurers claim settlement practices are regulated by the:
State insurance departments
An insurers ability to make unpredictable payouts to policy owners is called:
Liquidity
Which of the following pertains to the analysis of an applicants personal information and determining whether insurance should be issued or declined?
Underwriting
What does the Group Life underwriting risk selection process help protect insurance companies from?
Adverse Selection
The Arkansas Life & Disability Insurance Guaranty Association assures payment of benefits from insurance policies for insolvent insurers, and covers all of the following insured policies, EXCEPT:
Liability Insurance
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
Claim will be paid if application is approved
A life insurance policy owner does NOT have the right to:
Revoke an absolute assignment
An employee under a group insurance policy has the right to name a beneficiary and the right to:
Convert to an individual policy in the event of employment termination
The two major actions required for a policyholder to comply with the Reinstatement Clause are
Provide evidence of insurability, past due premiums
Pat owns a 20-pay life policy with a paid-up dividend option. Which of the following statements is true?
The policy may be paid up early by using policy dividends
Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy?
$4,000
($100,000 X .04 = $4,000)
Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true?
The face amount and premium will remain constant over the 10-year period
What is Arkansas’ REQUIRED grace period for a life insurance contract?
31 days
A domestic insurance company in Arkansas MUST
Be organized under Arkansas Insurance laws
Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract’s
Income period
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
Participating life insurance policy
No one is allowed to act as a producer for any insurance company in Arkansas that
Is unauthorized to do business in Arkansas
What MUST the company do prior to conducting an HIV related test?
Obtain a written consent from the proposed insured
Which approach predicts a person’s earning potential and determines how much of that amount would be devoted to dependents?
Human life value approach
If the annuitant dies before the annuity start date,
The premiums paid plus interest earned will be given to the beneficiary
If dividends are illustrated, the advertisement MUST state that the dividends are:
Not guaranteed
Intentional withholding of material facts that would affect an insurance policy’s validity is called a(n)
Concealment
Field underwriting performed by the producer involves
Completing the application and collecting initial premium
Which of the following statements is CORRECT regarding an individual applying for life or health insurance?
The applicants medical history may be analyzed and reported
Life insurance policies will normally pay for losses arising from
Commercial aviation
An example of rebating would be
Offering a client something of value not stated in the contract in exchange for their business
Which type of insurance company allows their policyowners to elect governing body?
Mutual
Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?
Endowment policy
A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the
Named living primary beneficiaries
A type of group that has a constitution and bylaws and has been organized for purposes other than obtaining insurance is called a(n)
Association or labor group
What are an applicant’s statements concerning occupation, hobbies, and personal health history regarded as?
Representation
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?
$5,000
The _ must provide an insured with proper disclosure concerning the replacement of a life insurance policy
Producer
Within how many days must a rollover be completed in order to avoid being taxed as current income?
60 days to complete the rollover to another IRA
Shawn, Mike, and Dave are brothers who have a $100,000 “first to die” joint life policy covering all three of their lives. If Mike dies first, the policy proceeds
Will no longer provide insurance protection
An insurer may pay commissions directly to any person for services as a producer provided the producer is licensed and __
Appointed
The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?
Insurable interest can be based on the love and affection of individuals related by blood or law
Andy the annuitant dies before the annuity start date. Which of the following is a TRUE statement?
Premiums paid plus interest earned is returned to the beneficiary
All of these are considered key factors in underwriting life insurance EXCEPT
Marital status
The promise of a discount in premium as an inducement to purchase insurance is an Unfair Trade Practice known as:
Rebating
Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?
Child term rider
Which of the following basics is a producer’s fiduciary responsibility?
Collecting premiums and paying them to the insurance company
Donald is the primary insured of a life insurance policy and adds a children’s term rider. What is the advantage of adding this rider?
Can be converted to permanent coverage without evidence of insurability
In Arkansas, replacement forms are required to be obtained for the replacement of which of the following
Annual Renewable Term (ART) insurance
What is involved when a life insurance policy has been backdated?
Making the policy effective on an earlier date than the present
Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen?
Fixed amount
In Arkansas, which of the following is considered an Unfair Trade Practice?
Coercion
Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy’s inception date, how much will her beneficiary receive?
Nothing
Level premium term life insurance policies
Have premiums that are averaged over the policy period
An insured may continue coverage under a group plan during their total disability if the premiums are paid for how long?
6 months from the date the disability started
Which is considered to be misrepresentation?
A producer guaranteeing a policy’s dividends
A type of insurer that is owned by its policyowners is called
Mutual
Which is true regarding the annuitant?
The annuitants life expectancy determines the annuity payments
An insurer may pay a commission in which of the following scenarios?
To a licensed producer who is appointed with the insurer
An underwriter’s primary responsibility to an insurer is to protect against
Adverse Selection
Which is NOT considered to be a risk factor in life insurance underwriting?
Number of children
A(n) _ license is issued by the Commissioner of Insurance to allow the personal representative of a deceased producer to provide service to existing policyowners
Temporary
Which is NOT a characteristic of the Accelerated Death Benefit option?
The benefit can be offered as a rider at a specific extra cost or may be at no cost
The coverage, conditions, and limitations in the master policy of a group contract can be found in which document?
Certificate of coverage and benefits
_ is NOT a source of information that can assist an underwriter in determining whether or not to accept a risk
National Association of Insurance Underwriters
Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT
The beneficiary
The standard grace period for a life insurance policy sold in Arkansas is
31 days
Craig purchased a life insurance policy for enabling his heirs to pay estate taxes. What is this called?
Estate conservation
An insured’s status under Social Security can be described as
Fully insured
Which of the following employers is required to follow ERISA regulations?
A local electrical supply company with 12 employees
Which is an annuity that is linked to a market-related index?
Equity-indexed annuity
Who’s signature is not required on an individual insurance application?
Insurer
A policy owner is prohibited from making any changes to the policy without the beneficiary’s written consent under which beneficiary designation?
Irrevocable beneficiary
The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority?
Implied
An example of replacement is:
Canceling a term life policy to buy a whole life policy
Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance?
Policyowner has the right to select the investment which will provide the greatest return
A Roth IRA owner must be at least what age in order to make tax-free withdrawals?
59 1/2 and owned an account for a minimum of 5 years
A professional liability for which producers can be sued for mistakes of putting a policy into effect is called
Errors and omissions
Converting a group plan to permanent life insurance involves
the conversion being applied within 1 month of termination
How are contributions made to a Roth IRA handled for tax purposes?
Not tax deductible
Within how many days must a Traditional IRA be rolled over to another IRA to avoid tax consequences?
60 days
Which describes the result of a modified endowment contract that failed to meet the seven-pay test?
Pre-death distributions are typically taxable
An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with?
Fair Credit Reporting Act
Which does a life insurance policy summary normally include?
The policy’s cash value
Insurance premium is determined by each of the following factors EXCEPT
Liquidity
Which situation accurately describes a reduced paid-up nonforfeiture option?
Policy has a decreased face amount
How long must an individual be unable to engage in any gainful activity due to physical or mental disability in order to qualify for Social Security Total Disability?
12 months
To qualify, the disability must be expected to last, or have lasted, at least 12 months, or it must be expected to result in death
An applicant’s character and personal habits can be obtained for underwriting purposes from which source?
Investigative consumer report
*detailed report that contains information on a consumer’s character, general reputation, personal characteristics, or mode of living and is obtained through personal interviews with neighbors, friends, or associates of the consumer
A foreign insurance company is defined as one that is
Formed under the laws of a state other than Arkansas
A policy owner may exercise which of these dividend options that uses the dividend to pay all or part of the next premium due?
Reduction of premium dividend option
Which of these is NOT considered to be a nonforfeiture option in a whole life insurance policy?
Interest only
Which is NOT an example of a Business Continuation Plan
Deferred Compensation
A limited payment whole life policy provides
Lifetime protection
A whole life insurance policy accumulates cash value that becomes
The policy loan value which the insured may borrow against
The Do Not Call Registry offers exemptions for everything EXCEPT
Insurance sales calls
Which is true about an insurer’s right to screen applicants for HIV?
An insurer can require a blood test for HIV
Which is NOT considered to be a nonforfeiture option available to a policy owner?
Reduction of Premium
How does life insurance create an immediate estate?
After first premium is paid, the face amount may be available to the beneficiary
Which dividend option would an insurer invest the policyowner’s money and add any interest earnings as the dividends accrue?
Accumulation at Interest Option
*invests the policyowner’s money and adds interest earnings to the initial amount of the dividends
In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered
Unilateral
Which type of life insurance is normally associated with a Payor Benefit rider?
Juvenile insurance
*a Payor Benefit rider waives the premium ONLY in connection with juvenile insurance
A beneficiary charge can occur
Normally at any time during the policy term
An insurance producer must notify the Commissioner within how many days of conviction of a crime?
within 30 days of any administrative action taken against him/her
A provision that allows a policyowner to temporarily give up ownership rights to secure a loan is called a(n)
Collateral assignment
*allows a person to temporarily give up a portion of their ownership to secure a loan
Which is NOT a legitimate insurance company in the same state?
Domestic and foreign
The Commissioner MUST give a MINIMUM of how many days’ notice of a disciplinary hearing?
10 days
*notice of hearing must be given to the person cited at least 10 days prior to the designated date
A life policy loan in Arkansas cannot charge a fixed rate of interest higher than
8%
All of these are settlement options for life insurance policies EXCEPT
Extended term
What is the purpose of the Medical Information Bureau (MIB)?
To help underwriters evaluate risk
A producer’s license CANNOT be revoked without
A hearing given to the producer
What will the beneficiary receive if an annuitant dies during the accumulation period?
The greater of the accumulated cash value or the total premium paid
Advertising records are subject to examination by the Arkansas Insurance Department, and must be maintained for at least
4 years or until the next regular examination by the Department, whichever is longer
Defamation occurs when a producer makes a false statement intended to
Malign another insurer
*producers making false statements intended to malign another insurance company may be found guilty of defamation
Which is considered to be a document that describes the critical segments of a life insurance policy?
Policy summary
What factors would an insurer consider when determining whether to accept a group life plan?
Average age
A producer who knowingly submits FALSE statements in support of a claim may be found guilty of
Fraud
A licensee who is required to take continuing education must complete _ hours of continuing education coursework?
24 hours
*3 of which must be related to ethics
What is a corridor in relation to a Universal Life insurance policy?
The gap between the total death benefit and the policy’s cash value
In what part of an insurance policy are policy benefits found?
Declarations
*declaration page is like a quick guide to the insurance policy, providing all the basic information the policyholder needs to know
Which of the following is a reinstatement condition?
Proof of insurability
Which is NOT part of an insurance contract?
Certificate of Authority
*allows an insurer to conduct business in a state
Who were Keogh plans designed to provide pension benefits for?
Self-employed individuals
The period in which there are no Social Security benefits for the surviving spouse is called the
Blackout period
A guaranteed issue insurance policy has no
Medical underwriting
Under a Traditional IRA, interest earned is taxed
Upon distribution
When a producer is replacing an existing ordinary life insurance policy, the producer must do all EXCEPT:
Obtain the beneficiary’s signature
Which is NOT considered to be a common life insurance nonforfeiture option?
Life income annuity
A producer must complete continuing education every __ years in order to maintain their license in Arkansas
2
An example of a tax-qualified retirement plan would be a(n)
Defined contribution plan
Which would NOT be a factor that is taken into account when determining an applicant’s life insurance needs?
Automobile
Which is NOT a reason for the commissioner to deny or refuse a producer license application?
Unintentionally misrepresented a material fact on the application
Under a contract of adhesion,
The terms must be accepted or rejected in full
*the applicant “adheres” to the terms of the contract on a “take it or leave it” basis when accepted
Mike has inherited his father’s traditional IRA. As beneficiary, he will pay __ taxes on any money withdrawn.
Income
*when a beneficiary inherits a traditional IRA, an income tax is paid when money is withdrawn
Which retirement plan does NOT qualify for a federal income tax deduction?
Roth IRA
An insurance producer agrees to pay the first monthly premium for an insurance applicant. This is called a(n)
Rebate, which is illegal
When a qualified plan starts making payments to its recipient, which portion of the distributions is taxable?
Gains
How does one qualify as a fully-insured individual under Social Security disability coverage?
Individual has been credited with the appropriate number of quarters of coverage
A policy owner may change two policy features on what type of life insurance?
Adjustable life
*allows for changes on premium and face amount
Making a statement that is false or maliciously critical of the financial condition of an insurer is known as
Defamation
If an agent has a combined agent/broker license, and recommends a particular insurer to a customer in which he/she is not appointed, in what capacity is the agent acting?
As a broker
In order to save on premiums, a life insurance policy can be backdated up to:
6 months
Of the following dividend options, which of these is taxable?
Accumulation at interest
Tim is covered under a group plan and would like to change his group coverage to an individual policy with the same insurer because of employment termination. Which of these describes the change that will take place?
Conversion
*when an insured individual changes his or her group insurance to an individual policy with the same insurer at the termination of employment
In regards to a life insurance contract, which is NOT true regarding the concept of insurable interest?
Insurable interest can be established sufficiently by sentimental attachment alone
Under a group life policy, the insurer will issue an individual _ to the policyowner for delivery to each person insured.
Certificate
If the insured’s age on a life insurance policy has been misstated, what is the insurer’s liability if the insured dies?
A prorated death benefit based on the amount of insurance the insure’s premiums would have been if purchased at the correct age
Which is NOT a characteristic of a Group Life Insurance Plan
Individual underwriting
*based on group underwriting
Which would limit a company’s liability to provide insurance coverage?
Exclusion
Fraternal Benefit Society has each of the following characteristics EXCEPT
Exists for profit
Rob has an benefit at work which enables him to defer his current receipt of income and have it paid at a later date, when he will probably be in a lower tax bracket. Which benefit fits this description?
Deferred compensation option
*enables an employee to defer current receipt of income and have it paid at a later date, when presumably the employee will be in a lower income tax bracket
Lisa has recently bought a fixed annuity. Which of these is considered to be a disadvantage of owning this type of annuity?
During periods of inflation, annuitants will experience a decrease in purchasing power of their payments
Which Unfair Trade Practice involves a producer suggesting that an insurance policy is like a share of stock?
Misrepresentation
What are premium payments for a Universal life policy NOT used for?
Separate account investments
Naming a contingent beneficiary as “all surviving children” is described by which term?
Class designation
Legal purpose is a term used in contract law meaning
There must be legal reasons for entering into the contract
Which is NOT considered to be an act of fraud?
Collecting a charge for insurance that is less than the charge applicable to that insurance
What is present when an applicant stands to lose value if the insured dies?
Insurable interest
Matt is applying for life insurance and requests a double indemnity rider. A double indemnity benefit will be payable to Matt’s beneficiary if Matt:
Dies instantly from a car accident
Which of these riders will pay a death benefit if the insured’s spouse dies?
Family term insurance rider
Which is NOT exempt from a 10% tax penalty for early qualified plan withdrawals?
Stock purchase
With whom may a producer legally share commissions?
Another producer who is licensed in the same line of insurance
If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if
The insured outlived the beneficiary
*allows the proceeds to go to the contingent beneficiary
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Interest only
An example of rebating would be
Returning a portion of a premium as inducement to purchase insurance
These are typically sources of underwriting information for life or health insurance EXCEPT
Disclosure authorization response
Which Unfair Trade Practice involves a producer telling a prospective client that a policy’s dividends are guaranteed?
Misrepresentation
A stock insurance company
is owned exclusively by its shareholders
Which of the following correctly describes a certificate of authority?
Permits an insurance company to transact business in Arkansas
All riders can increase the death benefit amount EXCEPT
Waiver of Premium
Which will have the highest monthly payout upon annuitization?
Straight life
Erica is 35 years old and owns an IRA. At what age can she begin to receive distributions without a tax penalty?
59 1/2
An interest-sensitive life insurance policy owner may be able to withdraw the policy’s cash value interest free. The provision that allows this is called
Partial surrender
A Renewable Term Life insurance policy can be renewed
At a pre-determined date or age, regardless of the insured’s health
Which does NOT correctly describe the purpose of Social Security?
Provides a source of income for a meaningful standard of living during retirement
*SS enhances, but does not replace, a sound personal insurance plan
Index whole life insurance contains a securities component that acts as a(n)
Hedge against inflation
Pat is insured with a life insurance policy and Karen is his primary beneficiary. They are both involved in an automobile accident where Pat dies instantly and Karen dies 5 days later. Which policy provision will protect the rights of the contingent beneficiary to receive the policy benefits?
Common disaster clause
In Arkansas, an insurance company cannot contest a death benefit claim from suicide if it occurred after the policy was in force for a minimum of _ years(s)
2
*incontestability period
An insurer will accept a premium from the insured and continue the coverage in full force as though it was NOT late during which time period?
Grace period
Which type if rider will waive the premium on a child’s life insurance policy if the parent paying the premium dies?
Payor benefit
Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy’s cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this?
Universal Life policy
How do interest earnings accumulate in a deferred annuity?
On a tax-deferred basis
How many months can a life insurance policy normally be backdated from the date of application?
6 months
Which is correct concerning Traditional IRAs?
Earnings are taxable when withdrawn
When calculating the amount of life insurance needed for an income earner, what has to be determined when using the Needs Approach?
The family’s financial objectives if the income earner were to die or become disabled
Which scenario would most life insurance policies exclude coverage for?
An individual who has a hobby racing cars once a month
A person must be at least __ years of age to enter into an insurance agreement in the state of Arkansas
18
What types of life insurance are normally used for key employee indemnification?
Term, whole and universal life insurance
In an insurance contract, the element that shows each party is giving something of value is called
Consideration
An insurance company appoints a(n) _ to transact insurance
Producer
What guarantees that the statements supplied by an insurance applicant are true?
Warranty
Which of the following would be considered an underwriting duty of an agent?
Collecting all applications and initial premiums
Which is NOT considered rebating?
Sharing commissions with a producer licensed in the same line of business
Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60. The death benefit would be
$500,000 face amount
Lapsed individual life insurance may be reinstated at any time within:
3 years
Failing to promptly provide a reasonable explanation for the denial of a claim is considered to be a(n)
Unfair Claim Settlement practice
Which of the following provisions is NOT required to be included in life insurance policies sold in Arkansas?
Extended Term
A producer may begin to solicit insurance ONLY when
Appointed by insurer
*a producer may not sell, solicit, or negotiate insurance on behalf of an insurer unless the producer has an appointment from the insurer
The beneficiary of any life insurance policy or annuity contract is protected from the _ of the insured
Creditors
Preferred risk policies with reduced premiums are issued by insurance companies because the insured has
Better than average mortality or morbidity experience
A non-contributory health insurance plan helps the insurer avoid
Adverse selection
Contingent Beneficiary
entitled to the proceeds if the primary beneficiary dies before the insured
Tertiary Beneficiary
The third in line to receive the benefits of a life insurance policy.
Revocable Beneficiary
means that the policyholder reserves the right to change the beneficiary designation without the beneficiary’s consent
Irrevocable Beneficiary
one that cannot be changed without the beneficiary’s consent
Dividends
Payments of cash from a corporation to its stockholders
Reduction of premium Option
The insurer uses the dividend to reduce the next year’s premium
One-Year Term Dividend Option
This option allows the policyowner to purchase a term insurance plan for a period of one year equal to the cash value of the original insurance.
Paid-Up Additions Option
Additional single-premium Life insurance paid for by policy dividends and added to the face amount. For example, your mutual insurer declares a $100 dividend, which you could have taken as cash. Instead, you ask them to use the money to buy you an additional Whole life policy, which is paid up to age 100. Although this additional policy is small, no physical exam is required, so this option is very popular with clients who have health problems. Over a period of time, you can obtain substantial additional coverage.
Accumulation at Interest Option
A dividend option under which the policy owner allows dividends to accumulate at interest with the company. Only the interest on the dividends is taxable as income (participating policies only).
Insurable Interest
Any financial interest in life or property such that, if the life or property were lost or harmed, the insured would suffer financially.
indemnity
a payment for damage or loss
Annuity
payment received every year
Roth IRA/401k
A personal savings plan; contributions are not tax-deductible; earnings are tax-free
Renewable Term Insurance
term insurance renewable without physical examination
Blackout Period
The period of time between the youngest child turning 16 and the widow(er) reaching retirement age during which no Social Security Survivor Benefits are paid to the surviving spouse.
Elimination Period
amount of time that lapses after a disabling event before the insurance company begins to pay benefits
Ineligible Period
Dependency Period
The period until the youngest child reaches age 18
SIMPLE retirement plan
Can be either a 401(k) plan or an IRA
Traditional IRA
Individual Retirement Account – A personal qualified retirement account through which eligible individuals accumulate tax-deferred income up to a certain amount each year, depending on the person’s tax bracket.
Tax-deferred income
Income that is taxed at a later date
Keogh Plans (HR-10)
- Allows unincorporated business owners to participate in the retirement plan – as an employee
- Can be either defined contribution or defined benefit plans
Nonforfeiture Options
cash value, reduced paid-up insurance, extended term insurance
Reduced Paid-Up Insurance
- the policyowner may request the cash value of the policy to be used to pay for itself.
- It’s the same type of insurance as the original policy except all riders, including those for disability and accidental death
Insurance Rider
written form attached to an insurance policy that alters the policy’s coverage
Guaranteed Insurability Rider
Optional rider that enables the policyowner to purchase additional amounts of coverage at predetermined times without proof of insurability.
Accidental Death Rider
pays some multiple of the face amount if death is the result of an accident as defined in the policy
Waiver of Premium Rider
Optional rider that requires an insurer to assume payment of premiums should the insured become totally disabled for six months for the duration of the disability.
Family Income Benefit Rider
In case the insured dies, a family income benefit rider will provide a steady flow of income to family members. When buying this rider, you need to determine the number of years your family is going to receive the benefit. The merit of having this rider is obvious—in case of death, the surviving family will face fewer financial difficulties thanks to the regular monthly income from the rider.
accelerated death benefits rider
allows insureds who are terminally ill to collect part or all of their life insurance benefits before they die
Child Term Rider
used to purchase term insurance on a life of a child
Long-term care Rider
A type of accelerated benefit which is used to pay long-term care costs.
Return of Premium Rider
Refund of 50-80% of premium (minus claims paid) every 5-10 yrs. OR age 65; expensive!
Discreet Authority
Apparent Authority
occurs when the powers of the agent are created by law or circumstance.
Implied Authority
Authority that is not expressed or written into the contract, but which the agent is assumed to have in order to transact the business of insurance for the principal.
Express Authority
the authority of an agent, stated in the document or agreement creating the agency
Consumer Reports
Written and /or oral statements regarding a consumer’s credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.
equity compensation plan
defined contribution plan
retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account
executive index plan
1035 exchange plan
Term life
Greatest coverage, lowest premiums