Virginia Life & Health Course Notes

Series 11-01 Insurance Regulation is approximately 10% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• SCC and Bureau of Insurance authority: The NAIC develops models and coordinates state regulators but does not directly enforce Virginia insurance law.

• SCC and Bureau of Insurance authority: SCC = Virginia regulator; Bureau = insurance arm.

Series 11-01 General Insurance is approximately 6% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• risk, peril, and hazard: The slippery floor is a hazard; the fall is the peril; the possibility of injury is the risk.

• risk, peril, and hazard: Risk = uncertainty; peril = cause; hazard = increases chance/severity.

Series 11-01 Life Insurance Basics is approximately 6% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• insurable interest at policy inception: A beneficiary can often be changed later without having insurable interest; the key timing question is policy inception.

• insurable interest at policy inception: Life insurable interest: required at inception.

Series 11-01 Life Insurance Policies is approximately 10% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• level term insurance: Term provides pure death protection; permanent insurance is designed to last longer and can build cash value.

• level term insurance: Level term = level benefit for a set term, no cash value.

Series 11-01 Life Insurance Policy Provisions, Options and Riders is approximately 11% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• assignment of life insurance: Assignment changes ownership rights; changing a beneficiary changes who receives proceeds but does not by itself transfer ownership.

• assignment of life insurance: Absolute = all rights; collateral = security interest.

Series 11-01 Annuities is approximately 6% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• accumulation versus annuity period: Accumulation builds value; annuitization converts value into an income stream.

• accumulation versus annuity period: Accumulate first; annuitize/pay later.

Series 11-01 Federal Tax Considerations for Life Insurance and Annuities is approximately 2% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• life insurance death-benefit taxation: The beneficiary's ordinary income level does not by itself make the death benefit taxable.

• life insurance death-benefit taxation: Death benefit generally income-tax free; interest can be taxable.

Series 11-01 Qualified Plans is approximately 2% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• 401(k) plan: 401(k) describes the retirement-plan arrangement, not an insurance product.

• 401(k) plan: 401(k) = employee salary deferral + possible employer match.

Series 11-01 Health Insurance Basics is approximately 6% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• medical expense versus disability income loss: Doctor/hospital bills point to medical expense; lost wages point to disability income.

• medical expense versus disability income loss: Medical bills vs paycheck replacement.

Series 11-01 Individual Health Insurance Policy General Provisions is approximately 11% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• entire contract and changes: An oral producer promise does not amend the written contract when the required provision says changes must be formally approved and attached.

• entire contract and changes: Health entire contract: written policy; authorized attached changes only.

Series 11-01 Disability Income and Related Insurance is approximately 5% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• own-occupation disability: Own-occupation is less restrictive than any-occupation because ability to work elsewhere may not defeat the claim.

• own-occupation disability: Own-occ = cannot do own job.

Series 11-01 Medical Plans is approximately 6% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• deductible and coinsurance: Deductible is a dollar threshold; coinsurance is a percentage share.

• deductible and coinsurance: Deductible first, then coinsurance.

Series 11-01 Group Health Insurance is approximately 5% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• group master policy and certificate: The employee certificate is not a separate master policy issued to each employee.

• group master policy and certificate: Master policy = group; certificate = member.

Series 11-01 Dental Insurance is approximately 1% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• dental benefit categories: A procedure's dental category affects cost sharing and limits; it is not determined solely by how expensive the service happens to be.

• dental benefit categories: Dental: preventive/basic/major; ortho often separate.

Series 11-01 Insurance for Senior Citizens and Special Needs Individuals is approximately 11% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• Medicare Part A covered services: Think facility/inpatient/hospice for Part A; routine physician/outpatient services point mainly to Part B.

• Medicare Part A covered services: Part A = hospital/inpatient.

Series 11-01 Federal Tax Considerations for Health Insurance is approximately 2% of the official outline. Use this section as a cram sheet: know the controlling definition, timing/number when one exists, the party who owns or bears risk, and the closest look-alike concept for every listed objectiveThe key points also include official-outline booster topics that were missing or thin in the original 200-objective draft.

• Personally paid disability-income premiums and benefits: The tax-free benefit treatment comes from after-tax personal premium payment, not from the disability benefit being inherently tax free in every arrangement.

• Personally paid disability-income premiums and benefits: Personally paid after-tax DI -> benefits generally tax free.