Life Insurance and Health Rules Pertinent to Life Insurance Only
Which of the following would be the beneficiary in credit life insurance?
creditor
Vatical settlements may be rescinding within what time period after the viator receives the proceeds?
15 days
An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT
15-year level term
To which of the following situations does the Replacement Regulation apply?
A whole life policy reissued with reduction in cash value
All of the following statements are correct regarding Credit Life Insurance EXCEPT
Benefits are paid to the borrower's beneficiary.
Which of he following must be included in all life insurance advertisements?
Identity of the actual insurer
What provision in a life or health insurance policy extends coverage beyond the premium due date
grace period
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
If a claimant is to bring a recovery action against an insurance company for a loss claimed under a policy, the action must be brought
within 2 years
Which of the following documents must be provided to the policyowner of applicant during policy replacement?
Notice Regarding Replacement
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
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment
31
If a policyowner surrenders his life insurance policy that has been in force for 5 years within 60days after the premium due date, what will the insurer be required to pay
A cash surrender value
An advertisement must accurately represent which of the following?
All of the above An advertisement shallot contain untrue or misleading statements regarding the insurer's assets, corporate structure, financial standing, age, or position in the insurance business.
Which of the following is used to compare the cost of one life insurance policy against another in order to guid prospective purchasers to policies that are competitively priced?
Cost comparison methods
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit Life
Which of the following is TRUE regarding the insurance amount in a creditor life policy
Creditor can only insure the debtor for the amount owed.
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is paid is called?
Creditor life
Which of the following is NOT allowed in credit life insurance?
Creditor requiring that a debtor buys insurance from a certain insurer
Credit Life Insurance
Insures the life of a debtor
Man with a $1 million life insurance policy died. In filing the claim, his wife and children were shocked to discover there was no beneficiary named on the policy. What happens to the death benefit in this case?
It goes to the insured's estate
All of the following are mandatory life insurance policy provisions EXCEPT
Policy backdating
The regulations regarding replacement apply to which of the following?
Renewable term
What is the main purpose of the regulation on life insurance policy illustrations?
To help the public make educated decisions about buying life insurance
Is it illegal for an insurance company to advertise that it is the leader of the financial industry and therefore pays the most claims each year?
Yes; advertisement must not mislead the public in terms of financial standing
