Ch. 8: life insurance & annuities- Policy replacement & cancellation

An insurer has been found guilty Of a code violation regarding replacement. The insured then repeats the violation. What will be the minimum penalty?

$30,000

What is the minimum free look period For newly issued life insurance policies in the state?

10 days

The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket in at least what type of print?

12-point bold print

During the cancellation period, an insurer must refund any premiums and policy fees within how many days of written cancellation notice by the insured?

30

Any insurance agent who commits A repeated violation of the insurance code with respect to insurance replacement will be liable for

And administrative penalty of no less than 5000 in no more than 50,000 per violation

A legally acceptable attempt by an existing insurer to dissuade a current policy owner from the replacement of existing life insurance is called

Conservation

And insured has the right to return the new insurance policy for a full refund during the

Free-look period

Which of the following insureds has a right to cancel an individual life policy within 30 days?

Insureds 60 years of age or older

The right of the applicant to resigned the policy for a full refund of all premiums

Must be clearly stated in the policy text

During replacement of life insurance, replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

An insured has the right To cancel policy by written notification to the insured. This notification may be mailed to the insured or return to the original agent who made the sale. Upon receipt of the cancellation request, the insurer will

Refund any premiums & policy fees within 30 days of notice if the policy is within the cancellation period Specified by the insurer

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

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a notice regarding replacement

During the free-look period, the premium for a variable annuity may be invested in all of the following EXCEPT

Value funds (can do fixed income investments, money-market funds, & mutual funds only upon the investors request)

Which of the following is true regarding a policy with the face value less than $10,000?

If it's returned during the free look period, The agreement will be void

To which of the following products does the replacement regulation apply?

Whole life insurance

All insurance policies and annuity Contracts delivered to senior citizens in the state of California are subject to cancellation Of at least

30 days