Life Insurance chapter 9
What is the maximum life insurance coverage available to the state residents through the Wisconsin State Life Insurance Fund
$10,000Th
No individual life insurance policy may be contested after it has been in force for
2 years
The insurer must maintain copies of all signed illustrations for a minimum of how many years after the policy is no longer in force?
3
What is the grace period of a life insurance policy?
31 days
When replacing a policy, an insurer must maintain a file containing copies of all statements for
5 years
Producers are required to comply with strict regulations when advising senior consumers about annuities. Which of the following would be considered a senior consumer?
Any person age 65 or older
What describes a ledger or proposal used to show both guaranteed and non-guaranteed elements of the policy?
Basic illustration
When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would
Lower the insured's premium
The Interstate Insurance Product Regulation Compact is a contract between
Member states
All of the following are required in a life insurance illustration EXCEPT
Name and home address of agent
Using a class designation for beneficiaries means
Naming beneficiaries as a group
Who has the right to change the beneficiary in a life insurance policy?
Policyowner
Anytime a life insurance transaction accompanies a securities transaction, which rule must be followed?
Proposal rule
Which of the following is FALSE regarding the life insurance replacement rules?
Replacement forms must be kept on file for 7 years
If a policy is marketed with an illustration who must sign the illustration?
The applicant and the agent
A policyowner neglects to pay his life insurance premium on time. He dies ten days later. Which of the following is true?
The death benefit will be paid, minus the premium
What happens to policy coverage during the grace period?
The insured is covered as he/she was before the grace period
No one may perform, offer to perform, or advertise any service in life insurance and securities, unless
The person is licensed and authorized in both areas
The policyowner of life insurance policy forget to pay his monthly premium and then does 10 days later. Which of the following is true?
The policy will pay full death benefits, less the premiums that were due
An insured innocently omitted a health problem in her life insurance application that would have influenced her premium amounts. The policy is issued, and the insurer discovers the error 3 years later. Which of the following will most likely happen?
The premium amounts will remain unchanged
An applicant accidentally writes on her application that she is 10 years older than she actually is. The policy is issued, and the insurer discovers the error several months later. Which of the following is most likely to happen to the premiums?
They will be charged according to her actual age
A Buyer's Guide must be presented
When the application is taken
What is the purpose of a proposal for life insurance policy sold in connection with a security?
To provide the policyholder with clear and accurate description of the policy coverage
When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called
Class designations
When an agent makes a life insurance proposal in connection with the sale of a security, he must do all of the following EXCEPT
Disclose the full financial history of the insurer that is providing the life insurance
Who does the Interstate Product Regulation Compact serve?
Insurers
Which of the following does NOT apply to variable contracts?
Insurers do not have to provide any financial information or history of the company
In order for an intermediary to sell or offer to sell a variable contract he/she must have which of the following types of licenses?
Life and Series 6 or Series 7
