Chp 11: TX Rules Pertinent to life Insurance ONLY
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment? A 14 days B 28 days C 30 days D 31 days
31 days
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer? A 7 days B 10 days C 30 days D 60 days
60 days
An insured in a group policy has misstated his age on the insurance application. As a result, the insurer will most likely A Issue an amended policy. B Adjust the premium. C Cancel the coverage. D Impose a fine on the insured.
Adjust the premium.
All of the following statements are correct regarding credit life insurance EXCEPT A Benefits are paid to the borrower's beneficiary. B The amount of insurance permissible is limited per borrower. C Premiums are usually paid by the borrower. D Benefits are paid to the creditor.
Benefits are paid to the borrower's beneficiary
Which of the following would be the beneficiary in credit life insurance? A Company B Borrower C Creditor D Insured
Creditor
Which of the following types of insurance policies is most commonly used in credit life insurance? A Increasing term B Whole life C Equity indexed life D Decreasing term
Decreasing term
Which of the following is correct regarding credit life insurance? A It is purchased on an installment basis. B It insures the life of a creditor. C It has a maximum term of 20 years. D It insures the life of a debtor
It insures the life of a debtor
During replacement of life insurance, a replacing insurer must do which of the following? A Send a copy of the Notice Regarding Replacement to the Department of Insurance B Obtain a list of all life insurance policies that will be replaced C Guarantee a replacement for each existing policy D Designate a new producer for a replaced policy
Obtain a list of all life insurance policies that will be replaced
If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement? A Paid endorsement B Insurer is not responsible for the contents of the testimonial C The author is the employee of the insurer D Commissioned advertisement
Paid endorsement
All of the following are mandatory life insurance policy provisions EXCEPT A Policy backdating. B Misstatement of age. C Incontestability. D Grace period.
Policy backdating.
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT A Reduction of premium B Reduced paid-up C Extended term D Shortened benefit period
Reduction of premium
Which of the following may be included on an insurance advertisement? A Testimonials from compensated individuals B Trade names in place of the insurer's name C Claims settlement illustrations which imply special treatment D Words and symbols similar to those of government agencies
Testimonials from compensated individuals
Which of the following is TRUE regarding the insurance amount in a credit life policy? A The amount of coverage can be greater than the amount owed. B The creditor can only insure the debtor for the amount owed. C The creditor may insure the debtor for an unlimited amount of coverage. D Allowable amount of coverage is determined by the State Insurance Commissioner.
The creditor can only insure the debtor for the amount owed.
How must a replacing producer respond to an applicant wishing to replace existing life insurance? A The producer must provide the applicant with a Notice Regarding Replacement. B The producer must collect the existing policies and turn them over to the replacing insurer. C The producer must request the permission of the existing insurer. D The producer has no specific duties.
The producer must provide the applicant with a Notice Regarding Replacement.
Which of the following CANNOT be included along with illustrations used to sell life insurance? A Vanishing premium information B Name of the insurer C Rating information D Original death benefit
Vanishing premium information
