Professional Documents
Culture Documents
Agent vs. broker; agents’ sources of authority (Text 3.12-3.15, Kaplan 11)
o Unilateral
o Personal nature
o Conditional nature
o Adhesion
o Indemnity and subrogation
o Insurable interest
o Utmost good faith ( concealment, misrepresentation)
Social Security: Background and extent of coverage (Text 7.2-7.4, Kaplan 76-77)
Eligibility: fully, currently and disability insured (Text 7.5-7.6, Kaplan 76)
o Retirement benefits
o Survivor benefits
o Disability benefits
o Benefit amounts
o Early/delayed benefits
o Earnings test/reduction in benefits
o Filing for benefits
Medicare: Tax rates, eligibility (Text 7.17-7.19, Kaplan 84-85)
Medicare Part A (Text 7.17-7.22, Kaplan 85-86, 88)
o Types of benefits
o Exclusions
o Grace period
o Policy loans, automatic premium loan provision
o Incontestable clause
o Dividend options
o Entire contract
o Reinstatement
o Misstatement of age or gender
o Nonforfeiture provisions
o Settlement options
o Beneficiaries
o Suicide clause
o Assignment provision
o Accelerated benefits provision
o Accidental death benefits
o Guaranteed purchase option
o Waiver of premium (Whole life) vs. waiver of cost (Universal life)
Income tax-free death benefits unless transfer for value rule is violated (Text
10.39, Kaplan 43) (Don’t forget the Corporate Alternative Minimum Tax rule)
Topic 8: Business and Estate Uses of Life Insurance (Text and Kaplan are weak here). Notice the
extra reports posted on Moodle for this topic under the heading “Back Room Technician”
o Qualified beneficiary
o Qualifying event
o Time periods for each
o Notice and premium provisions
o Eligibility
o High-deductible health insurance plans
o Breadth of eligible expenses
o Contribution limits
o Account investments and growth
o Distributions
o Taxation and penalties
Topic 10: Disability Income and Long-Term Care
o Short-term plans
o Long-term plans
o Contract requirements
o Benefit triggers
o Income tax treatment
Actual cash value vs. replacement cost (Text 16.6-16.7, Kaplan 92-93)
HO-3 Policies (most frequently tested form, Text 17.3-17.22, Kaplan, basically
92-106)