Bulletin 2000-10 Pre licensing Education Insurance Requirements for Insurance Agents

South Carolina JIM HODGES Governor Department of Insurance ERNST N. CSISZAR Director of Insurance Post Office Box 100105 300 Arbor Lake Drive, Suite 1200 Columbia, SC 29201-3105 Columbia, SC 29223 Bulletin Number 2000 - 10 (issued upon October 30, 2000) TO: All Licensed Insurers and Prelicensing Insurance Education Sponsors Administering Prelicensing Education Courses in the State of South Carolina FROM: Ernst N. Csiszar, Director of Insurance Prelicensing Education Insurance Requirements for Insurance Agents SUBJECT: The South Carolina Department of Insurance through Bulletins No. 4-86 of 1986 and 9- 90 of 1990 notified all insurers of the passage of legislation requiring prelicensing education for insurance agents and the revision of prelicensing education course requirements, respectively. The purpose of this Bulletin is merely to provide all licensed insurers and Prelicensing Insurance Education Sponsors with updated revisions to prelicensing education course topic outlines for Life, Accident and Health, and Property and Casualty lines of insurance. All other information contained in Bulletin No. 4-86, as it pertains to prelicensing education requirements in South Carolina remains unchanged. Further, this Bulletin replaces Bulletin 9-90. For reference purposes, Act Number 518 of 1986 was codified under South Carolina Code Ann. § 38-43-105 and South Carolina Code Ann. Regulation 69-23. In addition, currently approved prelicensing education course material must be revised to include the information as outlined in Exhibits 1 and 2 attached to this Bulletin. Revised course material and a completed course topic outline must be submitted to this Department for approval no later than 5:00 P.M. December 15, 2000. Your help is needed to ensure timely processing of the attached revised outlines tion, currently approved prelicensing education course material must be revised to include the information as outlined in Exhibits 1 and 2 attached to this Bulletin. Revised course material and a completed course topic outline must be submitted to this Department for approval no later than 5:00 P.M. December 15, 2000. Your help is needed to ensure timely processing of the attached revised outlines. SCID FORM 3536, (Certification of Completion of Prelicensing Requirements) submitted to the Department after January 31, 2001 without the newly assigned South Carolina Department of Insurance course approval number could result in the agent's prelicensing certification not being accepted. Questions regarding implementation of the revised prelicensing education course topic outlines, as well as revised course material should be addressed to the Licensing and Education Coordinator at the above address. The telephone number is (803) 737-6223. SOUTH CAROLINA DEPARTMENT OF INSURANCE PRELICENSING EDUCATION PROPERTY AND CASUALTY TOPIC OUTLINE Revised Edition (Approved October 30, 2000) PAGES IN SUBMITTED COURSE ON WHICH SUBJECT MATTER IS DISCUSSED I. PRINCIPLES OF INSURANCE: Risk, Loss and Basic Insurance Concepts A. B. Insurable Interest and the Principle of Indemnity Essential Elements of Insurable Risk C. D. Types of Insurance: Property and Casualty vs. Life, and Accident and Health E. Common Policy Components Declarations 1. 2. Insuring Clause Conditions 3. Exclusions 4. Definitions 5. 6. Endorsements Types of Insurers F. 1. Forms of Ownership 2. Government Programs a. South Carolina Windstorm & Hail Underwriting Association b. South Carolina Property and Casualty Insurance Guaranty Association 3. Risk Retention Groups Eligible Surplus Lines Insurer 4. The Insurance Marketing System G. 1. Independent Agents 2. Captive Agents Direct Writers 3. Brokers 4. 5. Purchasing Group EXHIBIT I 1. rsements Types of Insurers F. 1. Forms of Ownership 2. Government Programs a. South Carolina Windstorm & Hail Underwriting Association b. South Carolina Property and Casualty Insurance Guaranty Association 3. Risk Retention Groups Eligible Surplus Lines Insurer 4. The Insurance Marketing System G. 1. Independent Agents 2. Captive Agents Direct Writers 3. Brokers 4. 5. Purchasing Group EXHIBIT I 1. THE LAW AND INSURANCE II. A. Contract Law: Essential Contract Elements Agreement 1. Consideration 2. 3. Competent Parties 4. Legal Purpose Unique Features of Insurance Contracts B. Adhesion 1. Unilateral 2. Personal Contract 3. Indemnity and Subrogation 4. Legal Interpretations Affecting Insurance Contracts C. Concealment 1. Misrepresentation 2. Warranties 3. Waiver and Estoppel 4. - Parol Evidence Rule 5. Tort Law D. Agency Law E. Fair Credit Reporting Act F. Regulation of Insurance Industry G. THE INSURANCE AGENT'S ROLE III. Risk Analysis and Management A. Avoidance 1. Reduction 2. Retention 3. Transfer 4. Policy Limits and Recovery B. Indemnity I . Insurable Interest 2. Actual Cash Value 3. Stated Value 4. Replacement Cost 5. Coinsurance 6. Insurance - to - Value 7. Functions of Agency C. Quotations 1. Applications 2. Binders 3. Processing 4. Claims Handling 5. 6. Servicing 2 INSURANCE REGULATION IV. Insurance Department and its Duties/Authority Director of Insurance and his A. B. Duties/Authority Licensing Requirements C. Licenses Required 1. Certificate of Authority - Companies 2. Penalties for Violations 3. Definitions 4. Licensing Fees and Requirements 5. 6. Written Examination and Exemptions Broker and Bond Requirement 7. 8. Temporary Licenses Non-Resident Licenses 9. 10. License Expiration and Renewal Revocation or Suspension of License Change of Address for Agents - II. 12. Premiums and Commissions 13. D Continuing Education Unfair Trade Practices E. Misrepresentations or False Advertising 1. of Policies Misrepresentation in Claims Adjustment 2. False Financial Statements 3. Defamation 4 r and Bond Requirement 7. 8. Temporary Licenses Non-Resident Licenses 9. 10. License Expiration and Renewal Revocation or Suspension of License Change of Address for Agents - II. 12. Premiums and Commissions 13. D Continuing Education Unfair Trade Practices E. Misrepresentations or False Advertising 1. of Policies Misrepresentation in Claims Adjustment 2. False Financial Statements 3. Defamation 4. Boycott, Coercion or Intimidation 5. 6. Coercion of Business by Sellers/Lenders 7. Unfair Discrimination - Life and Disability Insurance, Annuities Inducements Prohibited 8. Free Insurance Prohibited 9. Insurance Cost to be Specified in Sales 10. Regulation of the Insurance Product F. Forms, Rates, Endorsements I . 2. Rating Organizations 3. Underwriting and Rates for Essential Property Insurance 4. Emergency Cease and Desist Insurance Fraud Reporting and Immunity 5. V. COMMERCIAL PROPERTY INSURANCE Parts of Policy A. 1 . Common Policy Declarations 3 2. Common Policy Conditions 3. Coverage Parts Declarations a. b. Coverage Form Conditions c. Exclusions d. B. Commercial Property Conditions Cancellation (Including South Carolina I . Special Provisions) 2. Concealment, Misrepresentation and Fraud Legal Action Against Company 3. Liberalization Clause 4. 5. Subrogation Other Insurance 6. 7. Policy Period Policy Changes 8. Inspections and Surveys 9. 10. Examination of Books and Records Building and Personal Property Coverage Form C. Property Covered I . a. Building b. Business Personal Property Coverage Form Business Personal Property of Others C. Property Not Covered 2. Additional Coverages 3. Debris Removal a. Preservation of Property b. Fire Department Service Charge C. 4. Coverage Extensions Limits of Insurance 5. Loss Conditions 6. Abandonment a. Appraisal b. Insured's Duties C. Valuation of Loss d. 1. South Carolina Valued Policy Law ii. Actual Cash Value Replacement Cost iii. Improvements and Betterments iv. Agreed Value Clauses V. Inflation Guard vi. vii. Additional Conditions Causes of Loss Forms D. Basic Form I roperty b. Fire Department Service Charge C. 4. Coverage Extensions Limits of Insurance 5. Loss Conditions 6. Abandonment a. Appraisal b. Insured's Duties C. Valuation of Loss d. 1. South Carolina Valued Policy Law ii. Actual Cash Value Replacement Cost iii. Improvements and Betterments iv. Agreed Value Clauses V. Inflation Guard vi. vii. Additional Conditions Causes of Loss Forms D. Basic Form I . Broad Form 2. 4 3. Special Form 4. Earthquake Flood 5. Condominium Form E. Builder's Risk Form F. Reporting Form G. Business Income Coverage Form H. Extra Expense Coverage Form 1. Commercial Package Policy Program J. Commercial Package Policy Program 1. Farm Owner's/Ranch Owner's Policy 2. a. Causes of Loss Types of Property Covered b. Business Owner's Policy 3. Eligibility a. b. Ineligible Risks Coverage Forms C. Optional Coverages d. Liability Coverage e. Excess Property Insurance (Difference In Conditions) K. Building Codes L. PERSONAL LINES POLICIES VI. Homeowner's Coverage A. Homeowner's Forms 1. 2. Eligibility Ineligible Risks 3. Declarations and Definitions 4. Persons Insured 5. General Conditions 6. Homeowner's Section I: Property Coverages B. Property and Losses Covered 1 . 2. Additional Coverages Optional Coverages 3. Property and Losses Not Covered 4. Perils Covered 5. Deductible/Recovery/Valuation 6. Homeowner's Section II: Liability Coverages C. Additional Coverages I . Optional Liability Coverages 2. Losses Not Covered 3. Conditions 4. Homeowner's Form HO-4 D. Homeowner's Form HO-6 E. 5 Homeowner's Section I: Property Coverages B. Property and Losses Covered 1 . 2. Additional Coverages Optional Coverages 3. Property and Losses Not Covered 4. Perils Covered 5. Deductible/Recovery/Valuation 6. Homeowner's Section II: Liability Coverages C. Additional Coverages I . Optional Liability Coverages 2. Losses Not Covered 3. Conditions 4. Homeowner's Form HO-4 D. Homeowner's Form HO-6 E. 5 Homeowner's Form HO-8 F. Other Personal Line Policies G. Mobile Homeowner's Insurance 1. Industrial Fire 2. 3. Dwelling Fire VII. NATIONAL FLOOD INSURANCE PROGRAM NFIP Incentives and Goals A. B. Community Eligibility and Limits Perils Covered C. Property Covered D. Property Not Covered E. F. ''Write Your Own'' Programs VIII. INLAND AND OCEAN MARINE AND AIRCRAFT INSURANCE Ocean Marine Insurance A. 1. Cargo Insurance Hull Insurance 2. Protection and Indemnity Insurance 3. B. Inland Marine Insurance Transportation and Communication 1. Risks Difference in Conditions 2. Commercial Floaters 3. Personal Floaters 4. Aircraft Insurance C. Aircraft Hull Coverage 1 . Aircraft Liability Insurance 2. CROP HAIL INSURANCE IX. A. Providers of Crop Insurance Private Carriers 1. Federal Crop Insurance Corporation 2. 3. State Crop Hail Funds B. The Crop Insurance Market Size of Market I . Concentration by Region Concentration by Crop 2. 3. History and Role of Crop Hail Insurance C. Actuarial Association (CHIAA) I . Origin and Purpose Structure of CHIAA 2. Limits to CHIAA Data 3. 6 ility Insurance 2. CROP HAIL INSURANCE IX. A. Providers of Crop Insurance Private Carriers 1. Federal Crop Insurance Corporation 2. 3. State Crop Hail Funds B. The Crop Insurance Market Size of Market I . Concentration by Region Concentration by Crop 2. 3. History and Role of Crop Hail Insurance C. Actuarial Association (CHIAA) I . Origin and Purpose Structure of CHIAA 2. Limits to CHIAA Data 3. 6 4. CHIAA Rating Philosophy D. Crop Insurance Coverage I . Insurable Interest 2. Policy Forms Policy Term and Coverage Period 3. 4. Coverage Amount Excess of Loss - Deductibles 5. Perils Covered 6. 7. Losses Not Covered - Exclusions 8. Policy Provisions South Carolina State Provisions 9. GENERAL LIABILITY X. A. The Liability Exposure I . Premises Exposures 2. Operations Exposures Products/Completed Exposures 3. 4. Other Exposures B. Claims Made vs. Occurrence Policies Commercial General Liability Policy C. 1 . Coverage A Claims-Made Coverage Trigger Occurrence Coverage Trigger a. b. 2. Coverage B 3. Supplementary Payments 4. Coverage C Limits of Liability D. I . General Aggregate Products-Completed Operations Aggregate 2. Other Limits 3. Claims-Made Endorsement E. Professional Liability/Errors and Omissions Liability F. Professional Liability Insurance I . 2. Directors and Officers Liability Insurance Patient's Compensation Fund 3. Umbrella and Excess Liability G. X1. AUTOMOBILE INSURANCE Personal Lines Policy Modernization A. Personal Auto Policy (PAP) B. Eligible Vehicles I . Definitions 2. PAP Liability Coverage - Part A PAP Medical Payments - Part B C. D. 7 essional Liability/Errors and Omissions Liability F. Professional Liability Insurance I . 2. Directors and Officers Liability Insurance Patient's Compensation Fund 3. Umbrella and Excess Liability G. X1. AUTOMOBILE INSURANCE Personal Lines Policy Modernization A. Personal Auto Policy (PAP) B. Eligible Vehicles I . Definitions 2. PAP Liability Coverage - Part A PAP Medical Payments - Part B C. D. 7 E. PAP Uninsured Motorists - Part C F. PAP Physical Damage - Part D PAP Duties After an Accident or Loss - Part E G. H. PAP General Provisions - Part F 1. Personal Auto Coverage Endorsements Towing and Labor Costs Miscellaneous Type Vehicles I . 2. Named Nonowner Liability 3. Named Nonowner Coverage 4. Underinsured Motorists Coverage 5. Optional Physical Damage Coverage 6. J. Commercial Lines Policy Modernization Business Auto Policy (BAP) K. I . Eligible Vehicles Policy Format 2. Declarations 3. Definitions 4. Covered Autos 5. Policy Period and Territory 6. L. BAP Liability Coverage - Part IV M. BAP Physical Damage - Part V N. BAP Conditions - Part VI Commercial Auto Coverage Endorsements 0. Medical Payments I . 2. Uninsured and Uninsured Motorist Coverage Driver Other Car Coverage 3. Employees as Insureds 4. P. Garage Policy Truckers Policy Q. R. Automobile Insurance Reform: Requirements and Mechanisms Compulsory Insurance and Financial 1. Responsibility Laws Automobile Insurance Plans 2. a. South Carolina Reinsurance Facility South Carolina Associated Automobile b. insurance Plan (SCAAIP) No-Fault Insurance C. South Carolina Joint Underwriters Association 3. Uninsured Motorist Fund 4. 8 s Insureds 4. P. Garage Policy Truckers Policy Q. R. Automobile Insurance Reform: Requirements and Mechanisms Compulsory Insurance and Financial 1. Responsibility Laws Automobile Insurance Plans 2. a. South Carolina Reinsurance Facility South Carolina Associated Automobile b. insurance Plan (SCAAIP) No-Fault Insurance C. South Carolina Joint Underwriters Association 3. Uninsured Motorist Fund 4. 8 WORKERS' COMPENSATION XII. History of Workers' Compensation Insurance A. I . Common Law Obligations 2. Common Law Defenses 3. Early Laws Workers' Compensation Today B. Jurisdictions Covered I . 2. Methods of Coverage South Carolina Law 3. 4. Losses Covered Types of Benefits 5. Second Injury Funds 6. South Carolina Workers' Compensation 7. Assigned Risk Plan Insurance Casualty and Surety Rates 8. State Workers' Compensation Benefits Workers' Compensation and Employers C. D. Liability Policy Information or ''Declaration'' Page 1 . Workers' Compensation 2. Employer's Liability 3. 4. Other States' Insurance Other Provisions 5. Common Endorsements 6. Drug-free Workplace Credits 7. CRIME INSURANCE AND FIDELITY BONDS X111. A. Commercial Crime Policy I . Employee Dishonesty Public Employee Dishonesty 2. Robbery and Safe Burglary 3. Burglary 4. Forgery or Alteration 5. Theft 6. Disappearance and Destruction 7. 8. Computer Fraud Other Crime Coverage Forms 9. Extortion 10. Vandalism 11. Types of Property That Can Be Covered B. I . Money 2. Securities Property Other Than Money and Securities 3. 9 AND FIDELITY BONDS X111. A. Commercial Crime Policy I . Employee Dishonesty Public Employee Dishonesty 2. Robbery and Safe Burglary 3. Burglary 4. Forgery or Alteration 5. Theft 6. Disappearance and Destruction 7. 8. Computer Fraud Other Crime Coverage Forms 9. Extortion 10. Vandalism 11. Types of Property That Can Be Covered B. I . Money 2. Securities Property Other Than Money and Securities 3. 9 Fidelity Bonds C. Depositor's Forgery 1. 2. Public Officials and Employees Financial Institutions 3. XIV. SURETY BONDS Suretyship and Insurance A. Parties to Bond Contract Bonds B. Bid Bonds 1 . 2. Performance and Payment Bonds Maintenance Bonds 3. Judicial Bonds C. Court Bonds I . 2. Fiduciary Bonds Bail Bonds D. - I . Licensing Requirements Types of Bondsmen 2. Pre-licensing Requirements 2. 3. Continuing Education Requirements 4. Licensing and Renewal Fees XV. OTHER MULTI-LINE AND SPECIALTY COVERAGES A. Boiler and Machinery Insurance Mechanical Breakdown B. Credit Insurance Title Insurance C. D. XVI. PREMIUM SERVICE COMPANIES Licensing Requirements A. Fees 1 . 2. Cancellation Process 10 SOUTH CAROLINA DEPARTMENT OF INSURANCE PRELICENSING EDUCATION LIFE, ACCIDENT AND HEALTH TOPIC OUTLINE Revised Edition (Approved October 30, 2000) PAGES IN SUBMITTED COURSE ON WHICH SUBJECT MATTER IS DISCUSSED I. BASICS OF INSURANCE: Risk and Insurance A. Insurable Interest B. C. Essential Ingredients of Insurable Interest The Law of Large Numbers 1. Loss Must Be Definite and Definable 2. Loss Must be Accidental 3. Economic Hardship and Reasonable Cost 4. Exclusion of Catastrophic Perils 5. Types of Producers D. 1 . Agents Life and Health Agents a. b. Property and Casualty Agents Brokers 2. 3. General Agents Method of Distribution 4. E. Underwriting Life Insurance I . Sources of Information a. Application Medical Exam b. Inspection Reports C. Medical Information d. Agent's Report e. Selection Criteria 2. Risk Selection and Premium Distribution 3. Standard Risk a. High Risk b. Frequency of Premium Payment C. EXHIBIT 2 1 e and Health Agents a. b. Property and Casualty Agents Brokers 2. 3. General Agents Method of Distribution 4. E. Underwriting Life Insurance I . Sources of Information a. Application Medical Exam b. Inspection Reports C. Medical Information d. Agent's Report e. Selection Criteria 2. Risk Selection and Premium Distribution 3. Standard Risk a. High Risk b. Frequency of Premium Payment C. EXHIBIT 2 1 F. Underwriting Accident and Health Insurance I . The Application 2. Underwriting Factors Age a. Sex b. Occupation C. Physical Condition d. Lifestyles C. Premium Determination 3. Deductibles a. Coinsurance/Co-pays b. Reserves C. South Carolina Life and Accident and Health G. Guaranty Association II. GENERAL INSURANCE LAWS: - Introduction A. Contract Law B. Contractual Agreement C. Offer 1. 2. Acceptance Consideration D. E. Competent Parties Legal Purpose - Public Policy F. Unique Features of Insurance Contract G. Utmost Good Faith I . 2. Aleatory Adhesion 3. Unilateral 4. Insurable Interest and the Principle of Indemnity H. Contracts and the Courts 1. Waiver and Estoppel I . Parol Evidence Rule 2. 3. Representation 4. Warranty Concealment 5. Formation of a Life and Health Insurance Contract J. Premium Receipts K. Insurability Conditional Receipt Approval Conditional Receipt 1. 2. Binding Receipt 3. 2 Fair Credit Reporting Act L. 1. Consumer Report Investigative Consumer Report 2. 3. Prohibited Information Consumer Rights 4. Penalties 5. Agency Regulation of Insurance Industry M. I . Legislative Regulation 2. Administrative Regulation 3. Judicial Regulation Self-Regulation 4. Areas of Regulation N. I . Licensing of New Companies Examination of Companies 2. 3. Company Financial Solvency 4. Regulation of Agents Taxation 5. - Rates and Policy Forms 6. III. RULES AND REGULATIONS: A. Department of Insurance Duties of Director of Insurance B. Licensing C. I . Change of Address for Agents D. Fees and Requirements for Licensing Nonresident Licensing E. Licensing Renewal F. Continuing Education G N. I . Licensing of New Companies Examination of Companies 2. 3. Company Financial Solvency 4. Regulation of Agents Taxation 5. - Rates and Policy Forms 6. III. RULES AND REGULATIONS: A. Department of Insurance Duties of Director of Insurance B. Licensing C. I . Change of Address for Agents D. Fees and Requirements for Licensing Nonresident Licensing E. Licensing Renewal F. Continuing Education G. Revocation or Suspension of License H. Insurance Code Provisions 1. I . Omnibus Health Benefit Unfair Trade Practices J. Unfair Methods or Deceptive Acts Prohibited I . Misrepresentation/False Advertising of Policies 2. Misrepresentations in Adjustments of 3. Claims Prohibited False Financial Statements Prohibited 4. Defamation Prohibited 5. Boycotts, Intimidation, Coercion Prohibited 6. Coercion of Business by Sellers or Lenders 7. Prohibited 3 8. Unfair Discrimination of Life Insurance, Annuities and Disability insurance Prohibited 9. Misrepresentations, Special Inducements and Rebates Prohibited on All Insurance Contracts Free Insurance or Advertisement Thereof 10. Prohibited Insurance Cost to be Specified in Sales 11. 12. Churning Prohibited K. South Carolina Regulations 1 . Replacement of Life Insurance and Annuities 2. Solicitation of Life Insurance Life Insurance Illustrations 3. Annuity and Deposit Fund 4. Federal Statutes L. Gramm-Leach-Bliley 1. Privacy Protection 2. IV. - TYPES OF INSURANCE COMPANIES: A. Stock Companies Mutual Companies B. Stock-Mutual Companies C. Fraternals D. Government Insurers E. Service Insurers F. Mutual Insurance Holding Companies G. V. TYPES OF LIFE INSURANCE POLICIES: Whole Life A. 1. Single Premium Whole Life Continuous Premium Whole Life 2. Limited Payment Whole Life 3. Variable Whole Life 4. Characteristics of All Whole Life Policies 5. Level Premium a. Cash Surrender Value b. Constant Face Amount C. Term Insurance B. Level Term I . Decreasing Term 2. Increasing Term 3. Renewable Term 4. 4 l Insurance Holding Companies G. V. TYPES OF LIFE INSURANCE POLICIES: Whole Life A. 1. Single Premium Whole Life Continuous Premium Whole Life 2. Limited Payment Whole Life 3. Variable Whole Life 4. Characteristics of All Whole Life Policies 5. Level Premium a. Cash Surrender Value b. Constant Face Amount C. Term Insurance B. Level Term I . Decreasing Term 2. Increasing Term 3. Renewable Term 4. 4 Convertible Term 5. Advantages and Disadvantages of 6. Term Insurance Universal Life C. Variable Universal D. Endowment Insurance E. F. Other Policy Forms 1 . Family Income Policy Family Maintenance Policy 2. The Family Policy 3. 4. Multiple Protection Policy Joint Life Policy 5. Reversionary or Survivorship, Policy 6. 7. Juvenile Policy Minimum Deposit Policy 8. Modified Life Policy 9. Adjustable Life Policy 10. - Variable Life Policy 11. Equity Indexed Life Policy 12. Funeral Directors G. Pre-Need Insurance I . LIFE INSURANCE POLICY PROVISIONS: VI. Contract Provisions A. Insuring Agreement I . Owner's Rights 2. Settlement 3. Payment of Premiums 4. Grace Period 5. 6. Statement of Age Policy Loan 7. Non-forfeiture S. Incontestability 9. Entire Contract and Representations 10. Assignment 11. Misstatement of Age or Sex 12. Modifications 13. Policy Change 14. Policy Year 15. Participating Policies 16. Brief and Correct Description of Benefits 17. Free Look 18. 5 Proof of Death 19. 20. Reinstatement 21. Designation/Change of Beneficiary 22. Form Number Exclusions B. Suicide I . Aviation Restrictions 2. War 3. Hazardous Sports or Occupations 4. Beneficiary Provisions C. Designation of Beneficiary 1. 2. Succession of Beneficiaries Insured's Estate as Beneficiary 3. 4. Trust as Beneficiary 5. Minor as Beneficiary Beneficiaries Must Be Clearly Named 6. 7. Class Designation - Common Disaster 8. 9. Change of Beneficiary Annuities D. Classification of Annuities 1. Number of Lives Covered a. Method of Premium Payment b. Time When Benefits Begin C. Disposition of Proceeds d. 1. Life Annuity ii ary 1. 2. Succession of Beneficiaries Insured's Estate as Beneficiary 3. 4. Trust as Beneficiary 5. Minor as Beneficiary Beneficiaries Must Be Clearly Named 6. 7. Class Designation - Common Disaster 8. 9. Change of Beneficiary Annuities D. Classification of Annuities 1. Number of Lives Covered a. Method of Premium Payment b. Time When Benefits Begin C. Disposition of Proceeds d. 1. Life Annuity ii. Guaranteed Minimum Annuities Life Annuity - Period Certain Life Annuity - Refund Annuity Certain iii. iv. V. vi. Temporary Life Annuity Pay out of Benefits e. Individual Annuity Contracts 2. Retirement Annuity a. Flexible Premium Annuity b. Tax Sheltered Annuities 3. 4. Type of Variable Annuities a. Single Premium Immediate Variable Annuity Single Premium Deferred b. Variable Annuity Periodic Payment Variable Annuity C. Equity Indexed Annuity 5. 6 VII. LIFE INSURANCE POLICY OPTIONS: Nonforfeiture Options A. I . Cash Value 2. Reduced Paid-Up Benefits Extended Term Insurance 3. B. Dividend Options I . Cash Application to Reduce Premium 2. Accumulation of Interest 3. Paid-Up Additions 4. Accelerated Endowment 5. Paid-Up Option 6. One-Year Term Options 7. Settlement Options C. Interest Only I . Fixed-Period Installments 2. - Life Income 3. Joint and Survivor 4. Other Settlement Arrangements 5. VIII. LIFE INSURANCE POLICY RIDERS: Accidental Death Rider A. Waiver of Premium Rider B. Waiver of Premium with Disability Income Rider C. Accelerated Death Benefit D. E. Disability Income IX. TYPES OF ACCIDENT AND HEALTH INSURANCE POLICIES: INDIVIDUAL: Basic Hospital Expense Coverage A. Basic Medical/Surgical Expense Coverage B. Hospital Confinement Indemnity Coverage C. Major Medical Expense Coverage D. Disability Income Protection Coverage E. Accident Only Coverage F. Specified Disease and Specified Accident Coverage G. Medicare Supplement Coverage H. Limited Benefit Health Insurance Coverage I. Long Term Care Coverage J. 7 LICIES: INDIVIDUAL: Basic Hospital Expense Coverage A. Basic Medical/Surgical Expense Coverage B. Hospital Confinement Indemnity Coverage C. Major Medical Expense Coverage D. Disability Income Protection Coverage E. Accident Only Coverage F. Specified Disease and Specified Accident Coverage G. Medicare Supplement Coverage H. Limited Benefit Health Insurance Coverage I. Long Term Care Coverage J. 7 GROUP: HMO (Health Maintenance Organization) A. ... B. POS (Point of Service) ... Major Medical C. D. Disability Vision E. Dental F. Cancer G. Accident H. Hospital Confinement 1. X. ACCIDENT AND HEALTH POLICY PROVISION: Mandatory Provisions A. Individual Insurance 1 . Entire Contract; Changes a. Time Limit on Certain Defenses b. Grace Period C. Reinstatement d. Notice of Claim e. Claim Forms f. Proof of Loss 9- Time of Payment of Claims h. Payment of Claims 1. Physical Examination and Autopsy J. Legal Actions k. 1. Change of Beneficiary Conformity with State Statutes in. 2. Group Insurance Grace Period a. Contestability Provision b. Application C. Evidence of Insurability d. Misstatement of Age e. Certificate f. Notice of Claim 9- Claim Forms h. Written Proof of Loss 1. Time of Payment of Claims J. Payment of Claims k. Physical Examination and Autopsy l. Legal Action m. 8 B. Optional Provisions (Individual Insurance) 1 . Change of Occupation 2. Misstatement of Age Other Insurance in this Insurer Insurance with Other Insurers 3. 4. Relation of Earnings to Insurance 5. 6. Unpaid Premiums Illegal Occupation 7. Intoxicants and Narcotics 8. HIPAA - (Health Insurance Portability and Accountability Act) C. Individual I . a. Renewability 2. Group a. Renewability Pre-existing b. Creditable Coverage C. D. Small Employer Health Insurance Availability - Definition 1 . Rating Requirement 2. Guarantee Issue 3. XI. ACCIDENT AND HEALTH INSURANCE POLICY RIDERS: Return of Premium A. B. Prescription Drug Accidental Death and Dismemberment C. ... Life D. ... HEALTH INSURANCE POOL: XII. A. Eligibility XIII ct) C. Individual I . a. Renewability 2. Group a. Renewability Pre-existing b. Creditable Coverage C. D. Small Employer Health Insurance Availability - Definition 1 . Rating Requirement 2. Guarantee Issue 3. XI. ACCIDENT AND HEALTH INSURANCE POLICY RIDERS: Return of Premium A. B. Prescription Drug Accidental Death and Dismemberment C. ... Life D. ... HEALTH INSURANCE POOL: XII. A. Eligibility XIII. THIRD PARTY ADMINISTRATOR: Licensing Requirements A. B. Licensing Fee 9