#11 Texas Rules Life Insurance Only T

The regulations regarding replacement apply to which of the following?

Renewable term, Replacement rules apply to all life insurance policies except group life policies, group annuities, credit life or nonconvertible term which will expire in 5 years or less and cannot be renewed. Purchasing additional coverage under the GIR is not a replacement of coverage, simply an addition of coverage.

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Replacement rule- anytime a new policy is issued that replaces or modifies existing insurance, a replacement form must be submitted to the ceding company

If a policyowner surrenders his life insurance policy that has been in force for 5 years within 60 days after the premium due date, what will the insurer be required to pay?

cash surrender value

The usage of words or symbols that are similar to what entity is prohibited in life insurance advertisements?

federal government

All advertisements are the responsibility of the

insurer

Upon the submission of a death claim under a life insurance policy, when should the insurer pay the policy benefit?

within 2 months

Which of the following types of insurance policies is most commonly used in credit life insurance?

Decreasing term

When possible, what should insurers strive to eliminate from illustrations?

Footnotes and caveats

Which of the following must be included in all life insurance advertisements?

Identity of the actual insurer

Which of the following is correct regarding credit life insurance?

It insures the life of a debtor- credit life insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor.

An individual covered under a Group Life insurance policy may convert the policy to any of the following EXCEPT

Level term

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

How long is the incontestability period in group life insurance policies issued in Texas?

2 years

How long is the grace period in group policies?

31 days

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer