Laws & rules pertinent to life insurance

The Commissioner may issue an emergency cease and desist order without a hearing for all of the following circumstances EXCEPT Selling insurance without a license Engaging in fraudulent activity Endangering the public Writing controlled business

Writing controlled business

Under the suicide clause, a life insurance claim cannot be denied due to suicide after a period of ___ ____ from the policy's effective date. 1 year 2 years 3 years 4 years

1 year

Which of the following statements regarding the Notice Regarding Replacement of Life Insurance is CORRECT? It is presented to the applicant only on request It must be presented to the applicant after the policy is issued A copy of the notice must be signed by the applicant and submitted with the application A copy of the notice must be reviewed and signed by both the policy applicant and beneficiary

A copy of the notice must be signed by the applicant and submitted with the application

When a minor is designated as the sole primary beneficiary, a guardian will be court-appointed in the event of a death claim a contingent beneficiary must be named the minor has immediate access to all proceeds upon death of the insured it is known as a tertiary beneficiary

A guardian will be court appointed in the event of a death claim

Which of the following statement is CORRECT regarding insurable interest in a life insurance contract? The beneficiary must have insurable interest in the insured at the time of death If the beneficiary no longer has insurable interest in the insured during the contestable period, the policy must be cancelled A new beneficiary must be designated if the original beneficiary no longer has insurable interest in the insured A person generally is considered to have an unlimited insurable interest in himself or herself

A person generally is considered to have an unlimited insurable interest in himself or herself

Which of the following is NOT a problem when existing life insurance is replaced with new coverage? The risk that a financial loss will occur when values in the existing policy end and new values are built in new coverage Comprehensive coverage may increase under the new policy The new policy may be based on the insured's attained age, with higher premiums than existing coverage The policyowner may pay additional costs for the new policy to issue

Comprehensive coverage may increase under the new policy

Which of the following potential insurance sales would be subject to replacement regulations? A new policy issued by the same insurer as part of a conversion privilege A new policy that causes an existing life insurance policy to be surrendered A credit life insurance policy that causes an existing credit life insurance policy to be forfeited A new group life policy that is replacing an existing group life policy

A new policy that causes an existing life insurance policy to be surrendered

If an annuity application was not taken in person, an insurer must provide the applicant a Buyer's Guide at the time of application within 5 business days of the insurer receiving the application at the time of policy issue at the time of policy delivery

Within 5 business days of insurer receiving application

A producer must remit premiums to the insurer within ___ days after receipt. 10 15 30 45

45

When replacing an existing life insurance policy, the replacing insurer must notify the existing insurer within 5 business days 10 business days 15 business days 20 business days

5 business days

G takes out a life insurance policy on October 8, 2008. On August 3, 2009, G takes his own life. When G's beneficiary files a claim, the claim will be denied under the suicide provision the claim will be paid under the settlement provision the premiums will be returned under the free-look provision the benefit will double under the accidental death provision

Claim will be denied under suicide provision

Which of the following words may be used in the advertisement of life insurance or annuities? Risk-free Guaranteed Investment Savings

Guaranteed

Employer noncontributory group life policies must allow for all of the following EXCEPT conversion privilege insured can determine the benefit amount insured can name a beneficiary minimum participation requirements

Insured can determine benefit amount

Which of the following is required for a life insurance Lapse Notice? Reason stated why the policy will lapse Notice mailed to policyowner within 10 days before the effective date of lapse Notice mailed to policyowner within 30 days before the effective date of lapse Automatic premium loan explanation

Reason stated why policy will lapse

Colorado's replacement rules apply to all of the following types of insurance EXCEPT 1-year term 10-year term 20-year term single premium whole life

Single premium whole life

Which of the following statements is true regarding the replacement of a life insurance policy in Colorado? The replacing insurer must maintain copies of all records regarding the replacement for at least 5 years The producer must maintain copies of all records regarding the replacement for at least 5 years The insurer whose policy is being replaced must keep all records regarding the replacement for at least 5 years All parties must maintain copies of all records regarding the replacement for at least 10 years

The replacing insurer must maintain copies of all records regarding the replacement for at least 5 years

Interest on life insurance proceeds is required if the claim was not paid within 30 days of death required if the claim was not paid within 30 days of the date insurer received the claim 8% not required in this state

required if the claim was not paid within 30 days of the date insurer received the claim

If an applicant for an annuity refuses to provide suitability information, the producer should obtain consent from the insurer to proceed obtain the consumer's signed statement documenting his or her refusal to provide suitability information obtain consent from the Commissioner to proceed cancel the application

obtain the consumer's signed statement documenting his or her refusal to provide suitability information