Essential Standard 4.00 Understand financial, credit, and insurance law Life Insurance and Fruad BB30 Business Law 4.02Summer 2013

Life Insurance-Types (How Much Do You Need?) Term Insurance Term Life Insurance 1. What is term insurance? 2. What is the primary benefit of term life insurance? Increasing Term Insurance 1. What is increasing term insurance? 2. What is the benefit of this type of policy initially but not a benefit as the insured gets older? Decreasing Term Insurance 1. What is decreasing term insurance? 2. How does this policy work for the insured? 2. Why would a person purchase a decreasing term policy? BB30 Business Law 4.02Summer 2013

Life Insurance (continued) Level Term Insurance 1. What is level term insurance? 2. What are the advantages and disadvantages of this type of insurance. Permanent Life Insurance Whole Life Insurance 1. What is whole life insurance? 2. What type of insurance coverage does it provide? 3. Is there an advantage to this type of policy? Universal Life Insurance 1. What is universal life insurance? 2. How does universal life compare to whole life insurance? 3. What is one advantage to universal life insurance. Variable Life Insurance 1. What is variable life insurance? 2. What is the primary difference with type of policy? BB30 Business Law 4.02Summer 2013

Life Insurance (Continued) Life Insurance Optional Rider Coverage Dependent Children 1. What is a rider? 2. What type of coverage does a rider provide for children? Spouse Rider 1. What type of coverage does a rider provide for a spouse? Guaranteed Insurability 1. What is guaranteed insurability? 2. What are the advantages of guaranteed insurability? Accidental Death and Dismemberment 1. What does accidental death mean to you? 2. What does accidental dismemberment mean to you? 3. How is this coverage different than a traditional life insurance policy? BB30 Business Law 4.02Summer 2013

Life Insurance (Continued) Beneficiaries 1. What is a beneficiary in a life insurance policy? 2. What happen if the beneficiary dies before or at the same time as the insured? Contingent Beneficiary 1. What is a contingent beneficiary? 2. If there are (3) contingent beneficiaries, how are the proceeds from an insured’s policy distributed if the primary beneficiary is deceased? Collecting Death Benefits 1. How does a beneficiary collect any death benefits? 2. What document must a beneficiary have in order to claim any death benefits for any insurance or other death benefits? BB30 Business Law 4.02Summer 2013

Life Insurance (Continued) Cost factors Needs Approach and the Human Life Value Approach Needs Approach 1.What is one thing that must be determined in the needs approach? Human Life Value 1. What is the one thing that must be determined in the human value approach? Statistical Basis for Life Insurance Mortality tables 1. How does the mortality table work in order for insurance to calculate rates? Morbidity tables 1. How does the morbidity table work in order for insurance companies to calculate rates? What are the main differences between the two tables? BB30 Business Law 4.02Summer 2013

Insurance Fraud 1. What is insurance fraud? 2. What are some of the most common types of fraud that are reported in North Carolina? Automobile Repair 1. What are some of the common methods that automobile fraud occurs? 2. Whom should customers who believe fraud may have been committed against them for an auto repair, report it to? Billing of Medical Services 1. What type billing incidents may be fraud? 2. Whom should a person who believes fraud may have been committed for services they did not receive, report the incident to? Automobile Accidents 1. What types of incidents or suspects accidents may constitute fraud? 2. What should you do if you suspect you are a victim of this type of fraud? BB30 Business Law 4.02Summer 2013

Insurance Fraud (continued) Property Claims Adjusting 1. What is this type of fraud? 2. Why has this type of fraud been so common in North Carolina in the past several years? Adjusting 1. What is “adjusting” in the insurance property insurance industry? 2. How does adjusting work, when the adjuster is doing a professional job and not trying to defraud a consumer? 3. What are some of the most common methods that fraudulent adjusters may utilize to defraud a consumer 4. Whom would you contact if you believed you were a victim of adjusting fraud. BB30 Business Law 4.02Summer 2013