C5 Ind Dis Question...

[Not Mike]

What was the 4th rider/option that they asked about? Residual, COLA, Guar Ins, and what else?

For 2nd timers, was this eerily reminiscient of last year's "Describe these 4 methods of marketing individual life insurance?"

[ajphilly]

I think there were only 3.

[The Bomb]

I also recall only 3; I know this because I only knew the last 2--Guar. Ins. and COLA. Didn't really know what to put for Residual...

[Not Mike]

Hmmm, maybe that's why I only recall three.... wasn't it an 8-pointer? Or was it 6? I thought for sure there was a letter d..... did a different question have 4 parts?

[Phil]

It was (a) Residual Dis. (b) Guar Insurability, (c) COLA, and (d) AD&D.

What does this have to do with methods of marketing from last year?

[Traina]

AD&D? I only remember Residual, guaranteed and COLA

[The Bomb]

I also don't recall an AD&D element (on that question, at least); I am pretty sure that it was only worth 6 points.

The question re: 4 different reserve methods (simplistic NP, realistic NP, gross premium, and accumulation) was worth 8 points, however...

[WWSituation]

It was a 6 pointer and there was no AD&D asked.

Everybody who used JAM should have gotten the residual disability and anybody could explain COLAs using common sense. The GIO was prety obscure.

[Not Mike]

The Bomb,

That's what I was thinking of! I totally forgot about the reserve question, another great question for the JAMmers.... I must say that if I pass, it's largely due to Mike C's seminar.....

I compare it to the 8-pointer from last year simply because it think it's very difficult to write 2 points worth of info for COLA and GIO....

[zapped]

COLA is a major benefit requiring modifications to the basic policy...benefit increases for inflation.

GIO is a minor benefit (not big enough for stand alone) in which benefit increases at specific dates are allowed without evidence of insurability. it must be taken when offered.

i did not write much more than that.

[kooky cookie]

The way I recall COLA being treated is as a minor adjustment to a policy, since it's conceptually simple.

[Not Mike]

And I believe that COLA is the one that must be taken when offered. GIO can be retroactively taken, I believe.

[zapped]

GIO increases must be taken when offered, or else they can not be taken in the future. the requirement is that when you purchase the coverage, it gives you the option to increase the policy at specific dates in the future, and those increases must be taken when offered. not sure about the specifics about COLA. it may be similar.

[Enough Exams Already]

GIO increases can be taken up to a year retroactively; if you pass one year, you can take it the following year, but *only* the following year. COLA increases are annual and automatic, but you must be on claim to get the increases. COLA increases are also usually subject to a per-year minimums and maximums, as well as an overall increase maximum.

I thought the GIO was the easy part, personally. The residual benefit gave me more trouble.