Texas Statutes and Rules Pertinent to Life Insurance ONLY

How long is the grace period in group policies?

31 days

Terminated EEs and their dependents have how many days to convert to individual policy issued WITHOUT evidence of insurability?

31 days; The new policy can be any type of ins. EXCEPT term. the premium will be based on the current age of the insured

misstatement of age on insurance application FOR A GROUP POLICY. what does insurer do?

ADJUST THE PREMIUM

What is used to compare the cost of one life ins. policy against another in order to guide prospective purchasers to policies that are competitively priced?

Cost comparison methods

The usage of words or symbols that are similar to what entity is prohibited in life ins. ads?

Federal government

What should insurers strive to eliminate from illustrations?

Footnotes and caveats

What MUST be included in all life ins. ads?

Identity of the actual insurer

credit life insurance

Insures the life of a debtor

Incontestability, Grace period and Misstatement of age

Mandatory life insurance policy provisions

grace period

Period of time during which an overdue premium may be paid without a lapse of the policy.

incontestability

With a(n) ____ clause, insurance cannot be cancelled during a specified period of time.

Is it illegal for an ins. company to advertise that it is the leader of the financial industry and therefore pays the most claims each year?

Yes; ads must not mislead the public in terms of financial standing

insurer's assets, corporate structure, financial standing, age, or position in the insurance business

accurately representations in advertisements

In credit life insurance, the ____ is the policyowner and the beneficiary

creditor

In credit life insurance, the ______ is the insured.

debtor

Ad must accurately rep. what?

insurer's assets, corporate structure, financial standing, age, or position in the insurance business

Group life policies must contain a "...................." provision.

misstatement of age

Policy backdating

not a mandatory provision; backdating a policy more than 6 months is prohibited

vanishing premium

not allowed on illustrations

All advertisements are the responsibility of whom?

the insurer

Cost comparison methods

used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced

Illustration used to sell life insurance cannot use the term "________ _______" - or any similar term - that implies the policy becomes paid up

vanishing premium

caveats

warning; specific conditions

The amount of time the insurer must pay death claims upon receipt of a written proof of death and the right of the claimant to the proceeds

within 2 months

Upon receipt of a written proof of death and the right of the claimant to the proceeds, the insurer must pay death claims within___months

within 2 months