Primerica

The maximum time period for suicide exclusion in life insurance policies issued in this state is

1 year In Colorado, the Suicide Exclusion is exactly one year.

At the time of application for an annuity, a producer did not provide a buyer's guide and disclosure statements to the contract owner. In this situation, the contract owner is entitled to a free-look period of at least how many days?

15 days When the buyer's guide and disclosure statement are not provided at or before the time of application, the applicant is entitled to a free-look period of no less than 15 days to return the annuity contract for a full refund without penalty.

An insured decides to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decides to return it. Within how many days must he return the policy to receive a full premium refund?

30 days The replacing insurer must provide a 30-day free-look period that gives the policyowner the right to return the policy and receive an unconditional full refund of all premiums.

Which of the following is NOT true regarding the Notice Regarding Replacement?

A copy must be sent to the existing insurer. The Notice must be provided at the time of policy replacement, must be signed by both the producer and the applicant, and a copy must be provided to the applicant. The Notice is not required for the existing insurer.

How long is the grace period in group life insurance policies in this state?

A grace period of 31 days must be allowed for the payment of every premium after the first, subject to an interest charge.

Which of the following statements is correct regarding the replacement of an existing life insurance policy?

A replacement notice must be given out before taking the application. A replacement notice must be given prior to the application. This is the only true statement listed. The free-look period on a replacement policy is 30 days and records must be kept for 5 years. Replacement regulation does not apply to group life insurance or group annuities.

Which of the following would be considered a violation of life insurance advertising regulations?

Calling a variable insurance policy an investment plan Insurance policies may not be sold as investment plans; their sole purpose is insurance.

Which rule would apply when an applicant is going to cash in an old policy and use the funds to purchase a new policy?

Replacement rule Anytime a new policy is issued that replaces or modifies existing insurance, a replacement form must be submitted to the ceding company.

Who has the right to assign incidents of ownership under a group life insurance policy?

The individual insured A person insured under a group life insurance policy has the right to assign all or any part of incidents of ownership under such policy, including, but not limited to, the privilege to have issued to the insured an individual life insurance policy and the right to name a beneficiary.

Which of the following terms will be permissible in describing a life insurance policy in company advertisements?

Variable plan Any terms that imply that life insurance is an investment plan, or the terms that may lead a consumer to believe that it offers benefits not actually available are prohibited in advertisements.

When an insured terminates membership in the insured group, the insured can convert to

Whole life without proof of insurability When a member terminates membership in a group, he/she can convert to whole life without proof of insurability.

An individual with a legal interest in the continued life of the insured defines the principle known as

insurable interest Insurable interest is having an interest in the continuation of the life of the insured.

Who is responsible for giving the Notice to the replacing insurer in a replacement life transaction?

producer The producer must obtain the applicant's signature on the Notice and submit it to the replacing insurer along with the Statement and an application.

A policyowner plans to change insurance coverage from one insurer to another. If the insurer starts a conservation effort, the insurer is

Discouraging policyholders from dropping existing policies. The act of trying to discourage a policyholder from dropping his/her existing policy is called "conservation effort."

Insurers must screen all marketing plans to assure that an advertisement does NOT use as the name or title of any kind of an annuity contract any phrase that

Does not include the word "annuity" unless accompanied by other clear language indicating it is an annuity. Advertisements for life insurance policies and annuities must not use as the name or title of a policy or contract any phrase that does not include the words life insurance or annuity unless accompanied by other clear language indicating that it is that type of contract.

Which of the following provisions prevents the insurer from denying a claim due to statements on the application after a certain period of time?

Incontestability Incontestability provision prevents an insurer from denying a claim due to statements in the application after the policy has been in force for a period 2 years, except for nonpayment of premium.

An insurer that does not pay a death benefit in a timely manner as required by state law, will be required to

Pay to the beneficiary an interest penalty from the date of the insured's death. If required by state law, failure of an insurer to pay a death claim within the time parameters set could result in their having to pay an interest penalty on the proceeds from the date of the insured's death to the date of the payment.

All of the following are the duties of the replacing producer where replacement is involved EXCEPT

Send a letter to the policyowner of the right to receive information regarding the existing policy. Most states have adopted the NAIC model act on the replacement of policies. Insurers are required to inform its producers of the requirements of this regulation into all relevant producer training manuals and institute procedures to confirm that the requirements of the regulation are met. It is the duty of the existing insurer to send a letter to the policyowner regarding the existing policy.

Under an employer-sponsored group plan, if the insurance on a person covered under the policy ceases because of termination of employment, which of the following is true?

The certificate owner is entitled to convert coverage to an individual policy without evidence of insurability. Under a conversion provision in group life policies, the certificate owner (the insured) is entitled to have issued to him or her by the insurer an individual life insurance policy without evidence of insurability. The application for the individual policy must be made, and the first premium paid to the insurer, within 31 days after such termination.

Who notifies the replacement company regarding the replacement of a policy?

The replacing company When replacement is involved, a producer must perform the following duties: sign replacement notice (and keep a copy), provide a list of items being replaced, leave all brochures/sales material used in the sale, take new application, submit "Copy to Replacement" notice, and it attach to application. The replacing company notifies the replacement company.

Insurance companies must maintain copies of all sales materials and applications used in replacement situations for a minimum of

Insurers must maintain records pertaining to replacement for at least 5 years.