Life Insurance - D. Life Insurance and Annuities - Policy Replacement/Cancellation

Replacing insurers shall provide its new policyowners with the right to an unconditional refund of all premiums paid during a ____-day free look period starting from the date of delivery of the new policy.

30 Explanation: Replacing insurers must give their new customers a 30-day free look.

Any attempt by an existing insurer or its agent to dissuade a policy owner from the replacement of existing life insurance is known as:

Conservation Explanation: Replacing life insurers must send to the existing life insurer a communication advising them of the replacement within three (3) working days of the date their new application was received. The existing insurer may then undertake a "conservation" effort in order to dissuade their policyowner from replacing.

The rules regarding replacement are designed to protect the interests of:

Life insurance and annuity purchasers Explanation: The rules regarding replacement are designed to protect the interests of life insurance and annuity purchasers. Remember, on replacement, the incontestability and suicide clauses start over, which may be detrimental to the insured.

The rules regarding replacement apply when replacing which of the following types of life insurance?

Universal life Explanation: The rules regarding replacement do apply when replacing Universal life.