The text format includes a discussion of each important issue, followed by a summary and a lesson quiz testing the students on the material just covered. Links are provided in the text to guide students to supplemental material (also provided in the text) that they may access if they choose. Each question in the lesson quiz is followed by a review of the text in which the answer is found. The courses generally include a glossary of important terms found in the course that students can access at any time.
| Disability Insurance |
The Disability Insurance course consists of seven lessons covering the principal disability products: disability income, income replacement, business overhead expense and disability buyout. The course includes the following lessons:
The text focuses primarily on disability income insurance although business-related disability products, such as disability buyout and business overhead expense policies, are also examined. Students are introduced to the various definitions of disability—own occupation, any occupation, etc.—that are used by insurers, as well as the important differences between the principal renewability provisions. Disability rider benefits are considered, including those benefits provided by the Social Insurance Benefits rider, the Purchase Option rider and the Return of Premium rider. Financial and medical disability insurance underwriting is discussed, and the use of occupational classification is explained. The important sources of disability income benefits are considered, including those provided by federal and state government programs, employer-related plans and individually purchased policies. The tax treatment of disability premiums and benefits is explained.
Disability Insurance can be expected to provide approximately 4½ CE credits. Customers may contract to receive annually updated course material.
| Gaining Client Agreement to Gather Information |
The Gaining Agreement course consists of five lessons addressing the critical sales process step of gaining the client’s agreement to gather information about his or her finances, responsibilities and objectives. The lessons include:
The text examines the methods of creating rapport with a prospect by employing creative listening, mirroring and other techniques. It discusses the methods that enable an agent to establish credibility through the publication of articles, obtaining professional designations, participating in professional organizations and using a personal brochure. A sample personal brochure is offered.
Dominant buying motives are considered, and specific areas of concern to business owners and other prospects that motivate them to work with life insurance agents are examined. Methods of negotiating negative prospect responses are discussed, and a formula for successful negative response negotiation is provided.
Gaining Agreement to Gather Information can be expected to provide approximately 3 CE credits. Customers may contract to receive annually updated course material.
The Estate Tax Planning course contains six lessons that examine the various aspects of planning for the estate tax liability. The course begins with a discussion of the genesis of estate taxation in English common law and continues with an examination of the estate and its administration. The subjects examined in the course include the following:
The text serves as an introduction to the issues of estate settlement and includes a discussion of the probate estate and the federal gross estate. The roles of the executor and administrator are also explained. The student is taken through the steps of a federal estate tax calculation, beginning with a discussion of the components of the federal gross estate and continuing with an explanation of adjusted gross estate, taxable estate, tentative tax base, tentative tax and tax payable before credits. The various credits and deductions are examined—including the marital deduction, unified tax credit, state death tax credit, credit for foreign death taxes and credit for tax on prior transfers—and their place in the federal estate tax calculation is explained. The role of trusts in estate tax minimization is considered, and an explanation of the common trusts employed in estate tax planning is given. The uses of credit shelter trusts, QTIP trusts and irrevocable life insurance trusts are demonstrated. State death taxes are considered, and inheritance taxes are compared to estate taxes with respect to the party liable for payment and the role of decedent/beneficiary relationships in inheritance taxation. Finally, the sources of estate tax payment are examined and compared.
Estate Tax Planning can be expected to provide approximately 4 CE credits. Customers may contract to receive annually updated course material.
Universal Life Insurance is presented in four lessons and begins with an examination of the financial and political environment in the decade of the 1970s that gave rise to the conditions resulting in the development of the universal life insurance product. The student will understand the roles played in the decline of whole life insurance sales during this period by:
The key features of the universal life insurance product are examined, including its:
Following the discussion of policy features, the student is given an opportunity to see how the universal life insurance policy works and is introduced to the various interest rates that play a part in universal life insurance, including the guaranteed crediting rates, current crediting rates and assumed rates (for illustration purposes). Policy cash values are calculated for both Option A and Option B death benefits. Cash value access and taxation are considered, and the appropriateness of withdrawals and policy loans is discussed in reference to the policyowner’s intent to repay. Universal life insurance taxation, following TRA ’84 is examined, and the limitations imposed by the legislation are considered, including the cash value accumulation test and the guideline premium/corridor test. Variable and equity indexed universal life insurance products are discussed, and their differences from declared rate UL products are examined. Universal Life Insurance can be expected to provide approximately 4 CE credits. Customers may contract to receive annually updated course material. |
| Ethical Considerations in Selling to Seniors |
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Ethical Considerations in Selling to Seniors teaches students to identify ethical concerns when working with seniors at each step of the sales process: the approach; the opening and fact-finding interview; presenting a proposal to the prospect or client; and implementing and following up if the client purchases a product or service. Special emphasis is placed on advertising, sales proposals and other business communications such as brochures, flyers and electronic communications. In addition, students learn how to present themselves and their professional credentials in an ethical manner. Students have the opportunity to apply their new knowledge to real life scenarios that ask them to analyze the ethical issues involved and identify proper ways to handle them. These scenarios cover several of the most common unethical practices in selling to seniors: inappropriate product replacement; violation of the fiduciary relationship; and lack of communication that would ensure seniors fully understand their choices and their attendant consequences. In addition, students learn to recognize the components of professional ethics and are introduced to several models of ethical decision-making that have developed over time and are being used to some degree today. |
| California 2004 Annuity Training |
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California 2004 Annuity Training is designed to meet the requirements of California law: specifically SB 620, Annuities: life insurance: required disclosures and prohibited sales practices. The course begins with a brief discussion of the development of modern annuities and an explanation of the annuity concept. It explains what an annuity is, how it works and the parties that are important in the formation of an annuity contract. The mechanics of the accumulation and payout phases of an annuity are examined and sample calculations are demonstrated. An explanation of settlement options and their appropriate uses are covered. Federal income tax treatment of premature withdrawals, lump-sum distributions and periodic payments is considered. California 2004 Annuity Training addresses the different annuity contracts available and compares them with respect to client suitability, with particular emphasis on variable, fixed and indexed annuities. Annuity product types are discussed in terms of single vs. periodic premium, immediate vs. deferred, qualified vs. non-qualified, and their settlement options. The primary uses of annuities are examined, the needs of the senior market are discussed, and the customary senior-market financial and insurance concerns are described. Sales practice issues when working with senior clients are considered, including California requirements with respect to appropriate advertising, the sale of annuities to affect Medi-Cal eligibility, in-home insurance solicitations, commission sharing with attorneys, unnecessary replacements, and the use of bait and switch tactics. Penalties that may be imposed for the violation of those requirements are described. The need for client suitability in the sale of annuities is discussed, and required disclosures are identified. The important issues concerning insurer reserving for variable annuities with minimum guarantees are described. The role of the California Life and Health Insurance Guarantee Association is examined. In that examination, covered persons and contracts are identified, and the limits of coverage are discussed. Upon successful completion of this course, the agent should be able to:
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