Term & Universal Life & Ethics

Table of Contents

Chapter 1: Defining Life Insurance		6
	Basic Concepts	6
	How Much is Enough?	7
	Calculating Expenses	8
	Another calculating method	10
	An Emergency Fund	11
	Child-Care Expenses	11
	Educational Fund	11
	Debt Repayment	12
	Coming to a Conclusion	12
	Insurance Companies Measure Risk	13
	What Type of Life Insurance is Appropriate?	14
	What Will the Insurance Cost?	15
	Term Insurance	16
	Reentry Level Term	18
	Level Decreasing Term Insurance	19
	Permanent Insurance	20
	Universal Life Insurance Policies	23
	Universal Life Evolution	24
	How Do Universal Life Policies Compare to Traditional Plans?	25
Chapter 2: The Life Insurance Contract		29
	Defining the Contract	30
	Policy Application	30
	Policy Ownership	31
	Preventing Money Laundering Activities	32
	Terrorism Produces Insurer Risk	32
	Legal Requirements Adopted	33
	Broker-Dealer Requirements	35
	AML Program Requirements	36
	Employee training can be in several formats	37
	Know Your Customer (KYC)	39
	Compliance	39
	Suspicious Activity Reports Filing Requirements	39
	A Change in Thinking	40
	Three stages of money laundering	41
	A Global Problem	41
	Covered Products	43
	Nine Identified ML Methods	45
	Money Laundering Indicators Not Unique to Insurance Products	47
	Policyholder Characteristics and Behaviors	48
	A Known Criminal or Criminal Associate or Relative	50
	Erratic or Abnormal Use of Policies	50
	High Premiums Compared to Verifiable Income	50
	Lack of Concern for Charges or Costs	51
	Undue Interest in Payout Options	51
	Change of Beneficiary	51
	Insurance on Assets that Appear Inconsistent with Income	51
	Early or Suspicious Claims	52
	Product Characteristics and Maintenance	53
	Customer Due Diligence (CDD)	55
	In Conclusion	57
Chapter 3: Policy Features and Provisions		58
	Premiums / Policy Options	58
	Nonforfeiture Options	58
	Dividend Options	59
	Settlement Options	60
	State Required Provisions	61
	Incontestability / Misstatements in the Application	62
	Deferment Clause / Loan Values	63
	Grace Periods and Reinstatement	64
	Allowed Policy Provisions	65
	Suicide / Aviation / War	65
	General Provisions	66
	Deduction of Indebtedness and Premium Refund	66
	Change of Beneficiary	66
	Assignment	67
	Beneficiary Designations	67
	Policy Payments	69
	Cash Values	69
	Dividends / Proceeds	70
	Special Clauses	71
Chapter 4: Contract Use		73
	Group Insurance Principles	73
	Eligible Groups	73
	Single Employer Groups	73
	Multiple Employer Trusts (METS) & Unions, Associations, and Other Groups	74
	Creditor-Debtor Groups	74
	Underwriting Advantages	75
	Keeping Current with Business Needs	76
	The Informed Consumer / Providing a Quote	77
	The Contract Participants	79
	The Insurer & The Insured	79
	Insurance Contract & Underwriting and Rating	80
	Finance  / A Public Interest	81
	Key Person Insurance	82
	Buy-and-Sell Agreements	83
	The Key Person Principle	84
	Insurable Interest for Life Insurance	84
	Health Insurance on Key Employees and Owners	86
	The Small Company’s Exposure	88
	Loss of the Small Business Owner	88
	Planning Ahead for Death or Disability / Insuring Entities	92
	Private and Government Insurance	92
	Private Insurers:  Life Insurance	93
	Property and Liability Insurance	94
	Government Insurance	95
	Voluntary Government Insurance & Compulsory Government Insurance	95
	Mutual Companies:  Assessment Mutuals	96
	Non-assessable Mutuals	98
	Conversions	99
	Reciprocal or Inter-Insurer Associations	99
	Stock and Mutual Underwriting / Factory Mutuals	101
	Superior Agents and Brokers	102
Chapter 5: Ethics		105
	Making Choices	105
	Ethics Beyond Philosophers / Being Ethically Responsible	106
	Caring for Others	107
	A Legal Liability / Ethics on the Job	110
	Education Requirements	111
	Responsibility	112
	When We Have Failed to Do Something Important	115
	Setting Up Professional Standards / Questions as well as Answers	116
	Professional Conduct	119
	Ethics in the Workplace	120
	Ethical Excellence	122
	Asking the Right Questions / Listening:  The Route to Success	124
	Patience, Patience, Patience!	126
	Customer Satisfaction / The Difficult Customer	127
	Preparing for the Inevitable / Using Specific Language	129
	Family Obligation	131
	Free Choice	132
	Egoism	133
	Objectivist Theory	134
	Cultural Ethics; Perception of Ethics	135
	Moral Persuasion	137
	Rationalizing Morals	138
	Can Ethics Be Taught?	140
	A Moral Habit	141
	Violence in the Name of Ethics	142
	The Addiction to Power	144
	Objective Morality	145
	Avoiding Negativity	147
	Who Is the Teacher?	148
	Is Manner Part of Ethics? / Ethical Investing	149
	Investing in Familiar Products	150
	Searching for Compatible Companies / Personal Involvement	151
	Forcing Change Through Investing	152
	Socially Responsible Investing (SRI) / The Avoidance Investor	153
	Positive Investing Approach	154
	The Activist Investor	156
	Gadflies	157
	Ethical Investing for Profit / Investing in Small Companies	159
	Investing for the Long Term / Early Ethical Investment Trends	160
	Where Does One Begin?	161
	Two Basic Categories of Investments / Know Thyself	162
	Investment Portfolios	163
	Appraising Thyself	164
	Considering Current Financial Status	165
	Future Financial Concerns	166
	Two Portfolios Constants	167
	Ethical Banking	168
	Credit Unions	168
	Minority Owned Banks	169
	Socially Responsible Credit Card Companies	169

United Insurance Educators, Inc.

8213 352^nd Street East

Eatonville, Washington 98328-8638

mail@uiece.com

www.uiece.com