CH8 LIFE SETTLEMENT
who is the owner of a life settlement contract?
a person who is selling the contract [who seeks to enter the contract]
what is the minimum age for applying for a life settlement broker license
18
which if NOT considered business of life settlement?
a producer discusses the advantages of a universal life policy and how the flexible premiums allows the owner to control the cash value and death benefit income [any activity relating to the solicitation and sale of an insurance policy to a 3rd party who has no insurable interest in the insured]
which is a term meaning a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors?
life expectancy
the person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract is the
life settlement broker
the form used to establish the terms for both parties when a person sells his life ins policy to a 3rd unrelated person is called
life settlement contract
life expectancy is used in the calculation of
life settlements
which of the following is NOT considered business of life settlement
a producer discusses the advantages of a universal life policy and how the flexible premium allows the owner to control the cash value and death benefit income [business life settlement refers to any activity relating to the solicitation and sale of an insurance policy to a third party who has NO insurable interest in the insured]
if an association is applying for a life settlement broker's license, which requirement must the association meet?
authorize a natural person to act individually as a broker
which is true regarding STOLIs in the state of NY?
direct or indirect participation in STOLIs is prohibited
life expectancy is used in the calculation of which of the following
life settlements
which is NOT true of life settlements
the seller must be terminally ill [usually involve life ins policies with a face amount of %250000 or more, "key person" coverage, corporate owned policies, or policies representing excess coverage that is no longer needed, and could be sold for an amount greater than the current cash value]
in order to be a licensed life settlement broker, a person must complete which requirement?
submit fingerprints
an investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of
STOLI policy/ stranger-originated life insurance
stranger-originated life insurance policies are in direct opposition to the principle of
insurable interest
in a life settlement contract, who does the life settlement broker represent?
the owner
in a life settlement contract, who does the life settlement broker represent
the owner [person for compensation, solicits]
life settlement contracts must be approved by who?
the superintendent of insurance