Illinois Statutes and Requirements Pertinent to Life Only

An agent uses an insurer's illustration. He obtains proper approval and does not change the illustration in any way. The illustration involves projected amounts, and the agent stipulates that the amount would not be guaranteed. Which of the following is true?

The agent must stipulate that the illustration is not part of the contract.

The Director must find all of the following to be true of a viatical supplement provider applicant before a license will be issued EXCEPT

The applicant posts a bond with the department of insurance.

The policy loans provision states that the insurer must advance to the policy owner a sum up to the policy's cash value after the full amount of premiums have been paid for how long?

3 years

In the state of Illinois, a viatical settlement contract must contain an unconditional right to cancel. How long does this right remain in effect?

30 days from the date the contract is executed

What is the maximum percentage of the face amount of a life insurance policy that can be paid in an acceleration of benefits?

75%

What must an insurer present to a prospective policy purchaser before the initial premium is paid?

Buyers guide

Which of the following is NOT an exclusion to the requirement stating that no insurer may recommend the purchase of an annuity if the recommendation results in an insurance transaction unless the recommendation is suitable for the consumer?

Contracts designed for senior citizens

The Life solicitation Rule applies to which of the following?

Individual life

The Replacement Regulation minimizes

Misrepresentation

To which of the following situations does the Replacement Regulation apply?

Nonrenewable coverage expiring in 8 years

Under standard circumstances, at what point should a Buyer's Guide be distributed to a prospective buyer?

Prior to the initial premium

A new life insurance policy is derived from a policy that was recently terminated. which of the following terms best describes this policy?

Replacement

How many accounts must the Illinois Life and Health Insurance Guaranty Association maintain?

2 Accounts: Life insurance and health insurance

The replacement regulation does Not apply to situations in which the total existing coverage to be replaced represents less than how much of the face amount?

$5,000

Under what conditions must an insured sign a Notice Regarding Replacement of life insurance or annuity form?

When replacing a policy with a different insurer that is under different ownership than the current company

According to the life insurance replacement regulations, which of the following would be an example of policy replacement?

A policy is reissued with a reduction in cash value.

Tho which of the following policies would the state regulation on illustrations NOT apply?

An individual variable life policy

A proposed policy form includes accelerated benefits. Before the policy can be legally used, it must be approved by which of the following?

Department of Insurance