Faces high catastrophic loss exposure
Is part of a large group of homogeneous exposure units
Has a market value difficult to determine
Holds no hardship to the owner should it be lost or damaged
If a mutual company goes public, it demutualizes
Mutual companies issue policies referred to as participating
Policy dividends issued by mutual companies are guaranteed and not taxable
Dividends allow policyholders to share in a mutual companies divisible surplus
Elected by the people of California every four years
Selected by the Governor as an appointee
Is a representative to the National Association of Insurance Commissioners (NAIC)
Capable of becoming the conservator of a financially impaired, or insolvent, insurer
Marketing plans to offer free insurance as an inducement to buy or rent real property are prohibited
Acts of fair and unfair discrimination are prohibited
Agents are not permitted to advertise that an insurer is a member of any insurance guaranty association
The act of twisting could result in a license suspension for up to three years
A licensee has 30 days to update a change in address
Licensees are required to have an in-state residential address
Loss of a precious professional license could result in the automatic denial of the life-only license application
A plea of nolo contendere is considered a conviction, thus it could hinder attempts to obtain a life-only license
Tommy Greene and Associates
Thomas Greene, CLU, & Company
Greene Insurance Agency
None of the would ever be automatically approved
As a life insurance product, future proceeds are tax free.
She has a 30 day free look period in case she changes her mind.
Since she only has a few more years before she retires, she should invest with the objective tho make as much money as possible. Her time horizon is limited.
She will have to begin taking withdrawals within six months of receiving the proceeds.
75% of eligible employees must elect to join the plan.
100% of eligible employees must participate.
75% of employees must elect to join the plan.
100% of employees must be allowed to participate.
The new policy will be term life. The employee pays all premiums.
The new policy will be term life. The employer will pay a portion of the cost.
The new policy will be cash value. The employer will pay a portion of the cost.
The new policy will be cash value. The employee pays all the premiums.
Split Dollar Plan
Executive Bonus Plan
Deferred Compensation Plans
Life with refund option, life with 10 years certain, straight life
Straight life, life with ten years certain, life refund option
Life with ten year certain, life with refund option, straight life
Life with refund option, straight life, life with 10 years certain
Interest only option
One-year term option
Reduce the nest premium payment
Accumulate with interest
$2,000 or less in coverage and premiums collected by agent.
$10,000 coverage and premiums paid by mail.
$50,000 coverage and premiums paid by mail.
$100,000 coverage and premiums collected by agent.
Variable Universal Life
Accelerated Death Benefit
Accidental Death Benefit
Accidental Death and Dismemberment
Cost of Living
The client is covered during underwriting.
The agent faces potential suspension or revocation of their license.
The client is not covered during underwriting since binders only start once underwriting is complete.
Since the medical exam hasn't been completed yet, the client is not covered at all.
Every week your client plays $20 on the lotto.
Any action that could do harm to your clients well-being such as reckless driving.
Your client invest 5% of his salary into the defined benefit plan at his work.
All of the above situations involve some risk.
Identification of their relationship to the insurance company.
License number must appear in the same size font as the phone number.
Must not include any title, designations, or licenses that are not currently held.
All of the above.
Qualified and unfunded
Fully funded and non-qualified
Qualified and non-qualified
Contributory and noncontributory
Automatic Premium Loan
Accelerated (Living) Benefit
Assignment of Benefit