Life law Quiz

When credit life is written, evidence of coverage ( a policy or certificate of insurance) must be delivered to the debtor when the debt is incurred or within

30 days

The definition of an Impaired Insurer is

An insurer which is potentially unable to meet its obligations

In advertisements of Life Insurance and Annuities, all of the following are true, EXCEPT:

1. the company's name must be used in the ad 2. the advertisement must be actually true in fact 3. the advertisement cannot be misleading or deceptive 4. Advertisement includes training materials provided to the producer (CORRECT)

An advertisement made by a paid celebrity for life insurance, must

1.represent their honest and true opinion 2.state that the celebrity is a paid spokesperson 3. be their current opinion

The Penalty for failure to pay a claim in a timely manner is:

10%

Users of the National Do Not Call list must review the list every

31 days

In life insurance, replacing companies must keep records of all replacement materials on file for

5 years

The Policy Summary must contain guaranteed:

Amounts payable upon death

A document providing basic information about life insurance policies which contains and is limited to language approved by the commissioner is a

Buyers Guide

AN effort by an existing insurer to prevent replacement and continue existing life insurance in force is known as:

Conservation

The amount of Credit Life Insurance may AT NO TIME:

Exceed the amount of the creditors liability

If an insurer decides to Waive its right to certain information, which of the following prevents the insurer from reasserting its right at a later time

The Doctrine of Estoppel

Which of the following is true concerning the proceeds of a life insurance policy if there is no assignment against the policy?

There is protection of proceeds against the insured's creditors and the beneficiary's/creditors

Life insurance solicitation requirements in New Jersey apply to all of the following EXCEPT:

annuitants

If an individual employee becomes totally disabled prior to the discontinuance of coverage, the group insurer discontinuing the policy:

must honor the claim

The amount of group credit life insurance that may be purchased to protect the debt is:

no more than equal the amount of the debtor

If credit life insurance is terminated before the scheduled maturity date of the debt, any unearned premium held by the insurer will be:

refunded to the debtor, unless the amount is less than $1.00

During the solicitation of a life policy without an unconditional refund offer, an insurer must furnish a prospective buyer with a Buyers Guide and a Policy Summary:

seven days before the initial premium is accepted

when replacement of life insurance is involved, the replacing insurer must notify the existing insurer, -In the absence of an unconditional refund offer, the replacing insurer must delay issuing its policy for at least:

30 days

The death benefit of Credit Life and Health Insurance is paid to

the Creditor

The National Do Not call list is maintained by :

the Federal Government (Federal Trade Commission)

The policy summary includes all of the following EXCEPT:

the annual percentage rate of the agents compensation

Which of the following initiates or buys Re-insurance?

the ceding insurer

Life insurers are required to keep copies of Policy Summaries and Buyers Guides on file for at least

Three years after the documents are used

The insurer must provide to all prospective purchasers, a Buyers Guide and a Policy Summary at least _______ prior to accepting the applicant initial premium or premium deposit, unless an unconditional refund provision is contained in the policy summary or the policy itself

seven days

Which of the following sells reinsurance?

the assuming insurer

When replacement of individual life insurance is involved, an agent must furnish a Notice Regarding Replacement of Life Insurance and a Comparative Information Form to:

the applicant and replacing insurer

Which of the following is the number of days required in a notice of hearing?

20 days or 10 days

The existing insurer has days to practice conservation and send to the replacing insurer all comparison forms and policy summaries within _________ days of making the conservation effort.

20 days/3 days

When new life insurance is to be purchased, the solicitation will be considered a replacement transaction if, in conjunction with the sale, existing life insurance will be subject to borrowing for amounts exceeding:

25% of the policy's loan value

The replacing insurer must notify the existing insurer within _______ of receiving the Notice Regarding, that they will be replacing the policy by sending an accurate Comparative Information Form of the date of application.

3 days

A written statement describing the elements of a policy is the

Policy summary

_______ is the process by which one life insurance contract is terminated or changed substantially and another is written in its place

replacement

After advertisements are last used, life insurers are required to keep copies of the ad on file for at least

five years

It is the responsibility of the producer at the time of application to establish if it is a replacement transaction. If it is a replacement transaction, the producer is required to:

have the prospective insured sign a Notice Regarding Replacement

The Penalty for failure to pay a claim in a timely manner is imposed on

the insured

In the advertising of individual life insurance policies, and "introductory" or "special enrollment" may not be made available until any previous enrollment period for the same policy has been closed for at least

three months