CH 6
How long is the incontestablilty period in group life insurance policies issued in Texas
2 years
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer?
60 days
The term "Illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract
What is the main purpose of the regulation on life insurance policy illustration
To help customers make educated decisions in buying life insurance
If a policy owner surrenders his life insurance policy that has been in force for 5 years within 60 days after the premium due date, what will the insurer be required to pay?
cash surrender value
What provision in a life or health insurance policy extends coverage beyond the premium due date ?
grace period
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are cometitively priced ?
Cost comparison methods
The type of insurance sold to a debtor and designed to pay the amount due on a lone if the debtor dies before the loan is repaid is called
Credit life
Regarding credit life insurance, who is responsible for reporting termination of debt to the insurer
Creditor
Which of the following is TRUE about credit life insurance
Creditor is the policy owner
Which of the following types of insurance policies is most commonly used in credit life insurance
Decreasing term
Which of the following must be included in all life insurance advertisements
Identity of the actual insurer
All advertisements are the responsibility of the
Insurer
Which of the following is correct regarding credit life insurance ?
It insures the life of a debtor
Which of the following documents must be provided to the policy owner or applicant during policy replacement
Notice regarding replacement
If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement
Paid endorsement
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
All of the following are requirements for life insurance illustration EXCEPT
They must be a part of the contract
To which of the following situations does the replacement regulations apply
A whole life policy reissued with reduction in cash value
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrowers beneficiary
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following no forfeiture options EXCEPT
Reduction of premium
The regulations regarding replacement apply to which of the following ?
Renewable term
Which rule would apply in an agent knows that an insured if going to cash in an old policy and use the funds to purchase a new insurance
Replacement
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 initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract
