Chapter 6: Texas Statues and Rules Pertinent to Life Insurance Only
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
all of the following information must be disclosed to the viator prior to the execution of a viatical settlement contract except
availability of stranger-originated life insurance (STOLI) (INFORMATION DISCLOSED: alternatives to the viatical settlement, tax consequences resulting from entering into the settlement, and the amount of compensation received by any person from the viatical settlement)
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 competitively priced?
cost comparison methods
which of the following would be the beneficiary in credit life insurance?
creditor
viatical settlements may be rescinding within what time period after the viator receives the proceeds?
15 days
the usage of words or symbols that are similar to what entity is prohibited in life insurance advertisements?
federal government
which of the following must be included in all life insurance advertisements?
identity of the actual insurer
which of the following documents must be provided to the policyowner 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
all of the following are mandatory life insurance policy provisions except
policy backdating (MANDATORY LIFE INSURANCE POLICY PROVISIONS: incontestability, grace period, and misstatement of age)
according to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options except
reduction of premium
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
how long is the grace period in group policies?
31 days
the type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
credit life
which of the following is true regarding the insurance amount in a credit life policy?
the creditor can only insure the debtor for the amount owed
which of the following is not required on an illustration used in the sale of a life insurance policy?
the name of the primary and secondary beneficiaries (IS REQUIRED: underwriting or rating classification upon which the illustration is based, generic name of policy, and name of insurer)
upon the submission of a death claim under a life insurance policy, when must the insurer pay the policy benefit?
within 2 months
