Chapter 6 Quiz

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

Viator

An illustration used in the sale of a life insurance policy must include a label stating

"Life insurance illustration"

How many days does a viator have to rescind a viatical settlement after receiving the proceeds ?

15 days

According to the limitations of lawsuits provision, how many years does a claimant have to take legal action against the insurer ?

2 years

How long is the grace period in group life policies issued in this state?

31 days

An insured in a group policy has misstated his age on the insurance application. As a result, the insurer will most likely

Adjust the premium

In an life individual insurance policy when must a nonforfeiture benefits begin?

After 3 policy years

Which of the following is the beneficiary in credit life insurance ?

Creditor

Credit life insurance is usually written as what type of policy

Decreasing term

Which of the following provisions prevents an insurer from denying a claim due to statements made on a life insurance application after the policy has been in force for a period of time ?

Incontestability

In credit life insurance, who is responsible for paying the policy premium ?

borrower

The use of words or symbols that are similar to which of the following entities is prohibited in life insurance advertisement?

federal government

What provision in a life insurance policy extends coverage beyond the premium due date?

grace period

A printer has hired an advertising agency to design and edited advertisement brochures for an insurance company. Once the brochures are printed, who is responsible for the advertisements and their content?

insurance company

Which of the following arrangements allows someone living with a life-threatening condition to sell an existing life insurance policy and use the proceeds before death?

viatical settlement