Chapter 6 q&a

When a group terminates, every individual insured under the policy premium I'll be entitled to have an individual policy if the insured has been insured by the group policy for at least how many years prior to policy termination?

5 years

Regulations for annuity recommendations would apply when a consumer is a least what age?

65

Licensed life insurance agents are expected to be familiar with which of the following laws?

All of the insurance laws and regulations

Which of the following is true regarding the spendthrift clause in life insurance policies?

It can protect the policy proceeds from creditors of the beneficiary.

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Spendthrift Clause

Which of the following insurance products will be subject to the regulation on life insurance solicitation?

Term life policy.

How will a life insurance beneficiary designation naming a spouse be changed by divorce?

The beneficiary designation will be voided.

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

When does the free look period begin?

the date the policy is delivered to the owner

Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage?

No, the group must be formed for a purpose other than obtaining group insurance.

A person insured under a group life insurance policy can make an assignment of all or any part of the incidents of ownership conferred on the insured by the policy or by law, to any of the following EXCEPT

policyholder

Who does the secondary addressee provision protect?

the insured over the age of 64

All of the following information about a customer must be in determining annuity suitability EXCEPT

Beneficiary's age

If a claim is made on a policy during the grace period, an insurer is allowed to deduct the overdue premium and to charge interest. What is the maximum allows interest rate?

8%

An annuity contract is issued to a senior consumer over age 65. What is the maximum surrender charge for a withdrawal of money allowed on this annuity?

10%