Chapter 8

Mike is the owner of a new life insurance policy. He meets with his agent, takes his policy home, and reads through the contract. Mike realizes that he doesn't want the policy after all and decides to cancel it. He must notify the insurer within

10 days

The policyowner in Nevada gets a free-look period of

10 days

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?

Buyer's Guide

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

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

What describes the specific information about a policy?

Policy summary

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?

Policy summary

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

The owner of a viatical settlement contract rescinds the contract 5 days after receiving the payment, and then unexpectedly dies 2 days later. This life settlement contract is considered to be

Rescinded, subject to repayment of the life settlement proceeds

A viatical settlement is arranged between a viatical company and a/an

Terminally ill insured

To which of the following would rule prohibiting a viatical settlement contract within 5 years of a policy issue date apply?

The owner needs money for down payment on the first home

What is the purpose of the buyers guide?

To allow the consumer to compare the costs of different policies

An insured with a life insurance policy is diagnosed with a terminal illness. Which of the following could be a suitable option for this insured?

Viatical settlement

Which of the following terms is used to describe a person, other than a viator, that enters into or effectuates a viatical statement contract?

Viatical settlement provider

Which of the following statements would best describe the difference between viatical settlements and accelerated death benefits

Viaticals are funded by a third party, and Accelerated Death benefits are provided by the insurer that issued the original policy.

Who is a person, other than a viator, that enters into a viatical settlement contract?

provider