California Life Insurance Policies 4-hour Course
Table of Contents
|
Life Insurance Policy Training Requirements |
1 |
|
Disclaimer |
1 |
|
Curriculum |
2 |
|
Whole or Permanent Insurance |
2 |
|
Whole Life Insurance |
5 |
|
Limited Pay Life Insurance |
5 |
|
Single Pay Life Insurance (SPL) |
6 |
|
Individual Variable Life Insurance |
8 |
|
Individual Non-Variable Life Insurance |
9 |
|
How do Universal Life Policies Compare to Traditional Plans |
11 |
|
Individual Variable Universal Life Insurance (VUL) |
13 |
|
Individual Term Life Insurance Policies |
13 |
|
Reentry Renewal Level Term |
15 |
|
Level Decreasing Term Insurance |
16 |
|
Individual Endowment Insurance |
17 |
|
Modified Endowment Contracts |
18 |
|
Individual Funeral Insurance (Burial Insurance) |
18 |
|
Disability Benefits in Life Insurance Policies |
18 |
|
California Insurance Code 10271.1(a)(1)-(6) Waiver of Premium |
18 |
|
Waiver of Surrender Charge |
21 |
|
10271.1(b)(1) |
21 |
|
10271.1(d) |
21 |
|
10271.1(b)(2) |
21 |
|
10271.1(b)(3) |
22 |
|
California Insurance Code Section 10271 |
23 |
|
Accelerated Death Benefit |
26 |
|
Accelerated Life Insurance Benefits |
28 |
|
LTC Benefits in a Life Contract Does Not Make it an LTC Policy |
30 |
|
Disability Benefits in Life Policies with Other Triggers |
30 |
|
Training Goals |
31 |
|
Juvenile Policies |
31 |
|
Survivorship Life Insurance |
33 |
|
Important! |
35 |
|
Purpose of 10509 is to Regulate Activities Regarding Policy Replacement |
36 |
|
Article Applicability: 10509.1 |
36 |
|
Replacement Defined: 10509.2 |
37 |
|
Article Not Applicable to Some Types of Insurance: 10509.3 |
38 |
|
Policy Replacement Requirements: 10509.4 |
38 |
|
Insurers Must Inform Agents About Replacement Requirements: 10509.5 |
39 |
|
Knowledge of Policy Replacements: 10509.6 |
40 |
|
Policy Replacement Notices: 10509.7 |
41 |
|
Unnecessary Replacements: 10509.8 |
41 |
|
Administrative Penalties: 10509.9 |
42 |
|
Governing Regulation of Life Insurance Illustration 10509.950 |
42 |
|
Illustrations Used in Sales of Life Insurance: 10509.955 |
43 |
|
Supplemental Illustration Requirements: 10509.957 |
44 |
|
Recognizing the Time Value of Money: 10509.970 |
44 |
|
Life Insurance Surrender Cost Index: 10509.971 |
44 |
|
Life Insurance Surrender Cost Index: 10509.972 |
45 |
|
Policy Comparisons: 10509.973 |
46 |
|
Does Not Apply to Variable Life Insurance: 10509.974 |
46 |
|
Buyer’s Guide: 10509.975 |
47 |
|
Understanding the Purchase |
47 |
|
LIFE INSURANCE ILLUSTRATIONS MODEL REGULATION |
47 |
|
Section 1: Purpose |
47 |
|
Section 2: Authority |
48 |
|
Section 3: Applicability & Scope |
48 |
|
Section 4: Definitions |
48 |
|
Section 5: Policies to be Illustrated |
50 |
|
Section 6: General Rules & Prohibitions |
51 |
|
Section 7: Standard for Basic Illustrations Format |
52 |
|
Narrative Summary |
53 |
|
Statements |
54 |
|
Tabular Detail |
54 |
|
Section 8: Standards for Supplemental Illustrations |
55 |
|
Acceptable Delivery of Policies: 10113.6 |
55 |
|
Section 9: Delivery of Illustration and Record Retention |
56 |
|
Viatical Settlements |
57 |
|
How do Viatical Settlements Work? |
57 |
|
Other Available Options Besides Selling Policies |
58 |
|
Buyer’s Remorse |
58 |
|
NAIC Model Act |
58 |
|
Defining a STOLI |
60 |
|
Life Settlements: California Insurance Code 10113.2 |
64 |
|
NAIC Model Law |
65 |
|
Section 8. Disclosure to Viator |
65 |
|
Identifying the Common Provisions of Life Insurance Policies |
66 |
|
Free Look |
70 |
|
Consideration Clause |
70 |
|
Owner’s Rights |
71 |
|
Selecting or Changing Beneficiaries |
71 |
|
Conversion Privileges |
71 |
|
Policy Ownership |
72 |
|
Policy Payments |
72 |
|
Cash Values |
73 |
|
Dividends |
73 |
|
Beneficiary Designations |
74 |
|
Uniform Simultaneous Death Act |
76 |
|
Per Capita vs Per Stirpes |
77 |
|
Grace Periods for Life Insurance Policies is 60 Days |
77 |
|
Here is the Exact Language for Some of 10113 |
78 |
|
Incontestable Provision: 10113.5 |
79 |
|
Policy Reinstatement |
80 |
|
Policy Loans |
80 |
|
Suicide |
81 |
|
Misstatement of Age or Gender |
81 |
|
The Entire Contract |
82 |
|
Notice of Pending Lapse and Termination Requirements |
82 |
|
The Right to Select a Designee |
82 |
|
The Right to Designate a Person in Case of Lapse: 10113.71 & 10113.72 |
83 |
|
Nonforfeiture Options |
83 |
|
Death Benefit Settlement Options |
84 |
|
10172.5 Benefit Settlement Options |
84 |
|
Retained Asset Account Disclosures and Requirements |
84 |
|
Dividend Options |
86 |
|
Typical Policy Exclusions |
87 |
|
Aviation |
87 |
|
Illegal Activities and Hazardous Hobbies or Occupations |
87 |
|
Taxation of life insurance policies |
87 |
|
Income Tax-Free Death Benefit |
88 |
|
Income Tax-Free Internal Buildup |
88 |
|
Withdrawals of Cash Values |
88 |
|
Estate Taxation |
88 |
|
Proceeds |
89 |
|
Internal Revenue Code (IRC) Section 1035 |
89 |
|
Important 1035 Exchange Procedures |
90 |
|
Upon receipt of the above requirements, the following will generally occur |
91 |
|
Mature Policy Values |
92 |
|
Non-Forfeiture |
92 |
|
Automatic Premium Loans |
93 |
|
IRC Definition of Modified Endowment Contract (Cash Accumulation) |
93 |
|
Sales Practices |
93 |
|
Suitability |
94 |
|
Senior Buyers |
95 |
|
Audits and Supervision |
95 |
|
Business Management Practices |
95 |
|
California Insurance Code Sections 780 to 784 |
96 |
|
Unfair Trade Practices |
97 |
|
Section 4: Unfair Trade Practices Defined |
98 |
|
Concealment: California Insurance Code Sections 330 – 339 |
107 |
|
Sales & Loan Requirements That are Prohibited |
108 |
|
California Insurance Code Section 777.1 |
109 |
|
Penalties |
109 |
|
California Insurance Code Section 35 |
109 |
|
California Insurance Code 1631 |
109 |
|
California Insurance Code 1633 |
109 |
|
California Insurance Code 1033 |
110 |
|
Gramm-Leach-Bliley Act |
110 |
|
Key Points |
111 |
|
Is It Still Relevant? |
113 |
|
Insurance Information and Privacy Protection Act |
117 |
United Insurance Educators, Inc.
PO Box 1030
Eatonville, WA 98328
Phone: (253) 846-1155
Email: mail@uiece.com