Saving the Sinking Ship
(c) copyright 1999 by Browzer Books.
Insurance Questions
page 4
by Lin Stone
EVERY individual policy or group certificate of credit life insurance and credit accident and health insurance delivered or issued for delivery in Oklahoma MUST SET FORTH: | |
| the name and home office address of the insurer | the name or other identification of the insured debtor |
| the full amount of the premium or total insurance charges, and the method used for computing insurance charges | the amount of the insurance coverage |
| the amount of the debt | the effective date and the termination date of the insurance |
| a description of the coverage to be expected. | Any AND ALL exceptions, limitations and restrictions to that coverage |
| a statement that the benefit, to the extent of the indebtedness, will be paid to the creditor as first beneficiary, and will be applied to reduce or to extinguish the indebtedness | for credit life insurance, a statement that wherever the insurance benefit may exceed the amount necessary to extinguish the indebtedness, any excess benefits shall be paid by separate check or draft to a second beneficiary |
| Except where permitted by law, the creditor shall not require that any benefit be applied to the reduction to any other indebtedness | A statement indicating that upon discharge of the indebtedness the insurance may be terminated |
| A statement indicating that the debtor may terminate the insurance and receive either a refund, or credit against the debt, provided written notice of termination is given to the insurer or creditor within 10 days of policy delivery. | |
The Application will require most of the above, Plus
1: A statement that upon accepting the client the insurer will (within 40 days) deliver an individual policy or a group certificate.
2: A space indicated as the space for the required signature of the debtor
3: Prominently stamped or imprinted the words IMPORTANT! YOUR COVERAGE CAN BE DENIED IF ANY ANSWER TO THE ABOVE HEALTH QUESTIONS IS INACCURATE, MISTAKEN OR INCOMPLETE.
| The Life Insurance and Annuity Policyholders Protection Act concerns: | requirements for insurers and agents who engage in the replacement of life insurance or annuities |
This protection act does NOT APPLY to any of the following:
a: Credit life insurance policies
b: Group life insurance or group annuity policies
c: A proposed life insurance policy that is to replace life insurance under a binding or conditional receipt issued by the same company issuing the policy which is to be replaced.
d: An existing nonrenewable life insurance policy written to cover periods of 31 days or less
e: An existing nonconvertible term life insurance policy which will expire in five years or less and which cannot be renewed.
f: The exercise by an insured of the guaranteed insurability provision or conversion option or other policy change privileges with the same insurer.
g: Contracts issued in connection with employee benefits or welfare plans are generally off limits too.
| Any transaction in which a new life insurance or annuity policy is to be purchased and because of the transaction an existing life insurance or annuity policy has been or is to be lapsed, surrendered, converted, or to become extended insurance is known as: ____ | REPLACEMENTS, |
| The document completed by the applicant and the agent prior to completing a new application for a life insurance policy or annuity policy which provides information regarding replacement transactions is known as | a NOTICE |
| A STATEMENT is a document to be | signed by the agent or the applicant, or both, which notifies the replaced insurer of the replacement. |
It is a requirement of any insurer operating in Oklahoma to inform every agent s/he must secure and forward to the insurer with each application for insurance that replaces an existing policy on the same life
1: a completed notice regarding replacement
2: a signed statement regarding notification of replacement to the replaced insurer
3: copies of the sales material prepared by the agent and used in the transaction.
If the client won't sign these, the agent must. However, if the statement regarding notification of replacement is not received by the new insurer, or arrives unsigned, it shall be presumed by the new insurer that the applicant desires the transaction be confidential, in which case the replacing insurer shall not notify the replaced insurer.
The insurer must review each statement concerning replacement BEFORE any underwriting is done, and this review must occur not later than 5 days after receipt of the application.
If the insurer discovers the agent has not secured and forwarded the required statement and notice of replacement then the insurer shall get on the agent's case immediately so the documents are secured and forwarded.
Furthermore, if the sales material the agent used is not substantially correct the insurer must delay processing the application until correct information has been presented to and acknowledged by the applicant.
After everything is in line with law and regulations the replacing insurer will contact EACH replaced insurer within 5 days of receiving the application.
This notification must include
| a: the name of the applicant, | b: the name of the insured, |
| c: the number of the policy being replaced, | d: the name and face amount of the replacing policy, |
| e: the legal name of the new insurers | f: a guarantee to the policy holder of at least a 20 day right to return the policy after delivery, for a full refund |
This gives the old insurer a chance to get an agent out there to do a reselling job.
a fairly standardized Notice to the Applicant must be presented to the applicant for reading and signing which explains all the reasons why s/he might want to stay with the original insurer. Then a Statement to the Applicant gives a second chance to repudiate the new policy and fall back into the good graces of the old insurer. If all this makes changing a policy seem slower than molasses just remember that if it goes through YOUR insurer will be the OLD insurer the next time an agent walks up to knock on that door.
| Accelerated Life insurance policies are bought because there is always a chance your client may ______: | learn s/he will not live as long as expected. |
| Long Term Care insurance policies are bought because there is always a chance your client may | require paid assistance and care to perform daily living tasks. |
| Accelerated Life and Long Term Care may be attached to a life insurance policy as ________ | riders -- one for each type is required. |
| A Qualifying Event is defined as at least one of the following: | a: A medical condition which would result in a drastically limited life span. b: Any condition which usually requires continuous assistance in an eligible institution, as defined in the contract c: Any other qualifying event which is approved by the Commissioner. |
| Mortality risks are _____ Morbity risks are _______ | 1: risks of dying prematurely 2: risks of needing extended care for illness or disease. |
The words Accelerated benefit must be included in the descriptive title of the rider or benefit provision of the life insurance policy. These two riders must not be marketed or described as either long term care insurance, or as providing long term care benefits.
| Small Employers in Oklahoma have fewer than | 50 employees |
| To be insured under group rates an insurer will insist the minimum size be a specific number of its choice but at least | 5 or more |
| An optional provision for intoxicants and narcotics lets the insurer off the hook for any loss resulting | from the insureds being under the influence of any narcotic unless administered on the advice of a physician. |
| However, ________ ______ IS covered under a health insurance policy. | Substance abuse. |
Are you ready to tackle Medicare Supplements Insurance?
Do you want to start over at the beginning?
Click HERE for Direct Access to
the best dental plan companies in the United States.
Back to the front page * life insurance companies * Health Insurance companies on the web * Learn How to Lower Your Health Insurance Premiums * Short Term Coverage * Sixteen Ways to improve your health * Pregnant, and NO insurance? * Drug Stores of the world * auto insurance * Are older drivers safe? * home insurance * travel insurance * dental insurance * business insurance * Make money at home * Insurance News * Health News * American insurance companies * medical insurance * disability insurance * long term care insurance * Medicare insurance * Insurance Trends * Help finding a lost insurance company * pet insurance * Insurance Agents * Humorous letters sent to me * Help for Writers * Travel destinations and safety tips * Build your own web site and make money from it. * Be Your Own Banker * Free Book of Mormon * Lower your cholesterol * World's Best Diet Aid * Coping with Grief * Dealing With Funerals How To Reassign Life Insurance Benefits * The Beginning of Insurance *
Web Site Owner, Earl H. Roberts
414 North 8th Street, Noble, OK,
73068
Phone 405 872 5556