Kentucky Life And Health Insurance Study Guide Questions And Correct Answers

from a risk perspective, what do the various occupation classes rating signify {Ans: 1. the likelihood of the insured becoming disabled because of the risk of his or her job 2. the likelihood of the insured returning to his or her own job following a period of disability}key points: payment of claims {Ans: explains claim process}whats the "net amount at risk" and how does it relate to cash value and benefit {Ans: difference between policys cash value and death benefit}what 2 taxes benefits are associated with qualified long term care insurance policies {Ans: premiums are deductible to the extent total unreimbursed medical expenses exceed 7.5% of AGI benefits are not taxed}policy provision key points: probationary period {Ans: the time between policy issue and when coverage become effective for illness-related losses (standard 10 days) guards against adverse selection}in what ways does a DI policy's elimination period serve the same purpose as a medical insurance policys deductible {Ans: both serve to eliminate small claims the applicant chooses the length (or amount) premium control: longer EP means lower premium}