Chapter 6 Life Insurance Questions

How long must an insurer keep all the advertisements on file?

4 years

What does the Guaranty Association guard against?

Insurer insolvency

What is the process by which a life insurance policy or annuity is reissued with a reduction in cash value or converted to reduced paid-up insurance?

Replacement

What is the term for an insured who enters into a viatical settlement?

Viator

Which of the following would be EXEMPT from the policy replacement regulations for insurers?

Credit life insurance

A viatical settlement is an arrangement between a viatical company and a:

Terminally ill insured

Ensuring that a life insurance product matches the clients' investment objectiveness, financial status, tax status, and needs is called:

Suitability

When replacing a life insurance policy or annuity, a producer has all of the following duties EXCEPT:

Send a written communication to existing insurers advising them of the proposed replacement

Which of the following will NOT be included in the buyer's guide?

Specific information about the policy applied for

A policy insurance policy may pay an accelerated benefit if the insured needs the money for which of the following?

Terminal illness treatment