Life Insurance and Annuities-Policy Replacement and Cancellation
d.refund any premiums and policy fees within 30 days of notice if the policy is within the cancellation period specified by the insurer.
An insured has the right to cancel a policy by written notification to the insurer. This notification may be mailed to the insurer or returned to the original agent who made the sale. Upon receipt of the cancellation request the insurer will a.have the writing agent review the policy cancellation and attempt to conserve the policy. b. report the cancellation to the insurers home office and the Department of Insurance Policy Conservation Unit for statistical data accounting purposes. c.cancel the policy and terminate an automatic bank drafting the premiums d.refund any premiums and policy fees within 30 days of notice if the policy is within the cancellation period specified by the insurer.
d.be fined a sum of $1,000
Any insurance agent who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation a.be fined a sum of $10,000 b.be administratively suspended from licensing for a period of 180 days. c.be fined a sum of $5000 d.be fined a sum of $1,000
c.must be clearly stated in the policy's text.
The right of the applicant to rescind the policy for a full refund of all premiums a.must be exercised within 3 days of the policy issue. b.is not a valid right. c.must be clearly stated in the policy's text. d. is implied during the application process.
b.notice regarding replacement
which of the following documents must be provided to the policy owner or applicant during policy replacement? a.policy illustrations b.notice regarding replacement c.disclosure authorization form d.buyers guide and policy summary
a.replacement rule
which rule would apply if an agent knows an applicant is going to cash in an old policy and use funds to purchase new insurance? a.replacement rule b.reinstatement c.conversion rule d.disclosure rule
c. $30,000
An insurer has been found guilty of a code violation regarding replacement. The insurer then repeats the violation. What will be the minimum penalty? a.10,000 b.25,000 c. $30,000 d.$100,000
c.obtain a list of all life insurance policies that will be replaced.
During replacement of life insurance a replacing insurer must do which of the following? a. designate a new producer for a replaced policy. b.send a copy of the Notice Regarding Replacement to the Department of Insurance. c.obtain a list of all life insurance policies that will be replaced. d.guarantee a replacement for each existing policy.
a.30
During the cancellation period an insurer must refund any premiums and policy fees within how many days of written cancellation notice by the insured? a.30 b.60 c.10 d.20
b.value funds
During the free look period the premium for a variable annuity may be invested in all of the following EXCEPT a.mutual funds(only upon the investors request) b.value funds c.fixed income investments d.money market funds
c.30 days
Every policy of individual life insurance must include a notice of right to cancel the policy stating the specific time frame for the free look period. Once the insured has cancelled the policy within how many days must the insurer refund all premiums and policy fees? a.2 weeks b.90 days c.30 days d.10-30 days
c.the producer must provide the applicant with a Notice Regarding Replacement.
How must a replacing producer respond to an applicant wishing to replace existing life insurance? a.the producer must request the permission of the existing insurer. b.the producer has no specific duties. c.the producer must provide the applicant with a Notice Regarding Replacement. d.the producer must collect the existing policies and turn them over to the replacing insurer.
b.12 point bold print
The notice to senior consumers regarding their right to cancel a policy must be printed on the cover or policy jacket at least what type of print? a.12 point standard point b.12 point bold print c.14 point standard print d.14 point bold print