Life Insurance: Chapter 6: Quiz

what is the maximum allowed value of promotional gifts that an agent may give to a prospective insured?

$100

In order for a debtor group to qualify for group life insurance, what should be the minimum number of participants joining the plan every year?

100

the minimum age for purchasing life insurance in florida

15

in term of parties to a contract, which of the following does not describe a competent party?

The person must have at least completed secondary education

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

beneficiary designation will be vioded

which statement is not true regarding policy summaries? a) must include generic name of basic policy and each rider b) must include date policy summary is prepared c) must be combined with sales illustration d) generally given to applicants before acceptance of initial premium

c) must be combined with sales illustration

if an employee is accepted in a group life plan, which status will the employee have?

certificate holder

eligibility for labor unions

eligible members must be all the members of the union

eligibility for trustee groups

established by 2 or more employers in the same industry; by one or more labor unions, or by one or more labor union and one or more employer

which kind of policy typically doesnt require proof of insurability?

group life

An employer offers group life insurance to its employees for the amount of $10,000. Which of the following is true?

the cost of coverage is a deductible expense for the employer

If a life insurer holds the proceeds of any policy it issues, which of the following is true?

the proceeds may be exempt from any creditor's claims against a beneficiary other than the policy owner

An agent delivers a life insurance policy to the proposed insured. The insured makes a decision not to accept the policy. The insured may return the policy for a full refund of premium within how many days?

14 days

When a group policy terminates, every individual insured under the policy will 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

a paid-up nonforfeiture benefit will become effective as specified in the policy, unless the person entitled elects another available option within how many days after the due date of the premium in default?

60

what term describes the benefits of a life insurance policy that the policyowner does not automatically relinquish even if the policy lapses?

nonforfeiture values

if an employer decides to change its life insurance policy to a similar one with a different insurer, which of the following best describes the extent that replacement regulations will be regulated?

replacement regulations will not apply in this situation

a person under group life insurance can make an assignment of all or part of any of the incidents of ownership conferred on the insured by the policy or by the law, to any of the following except? a) lender b) family membe c) beneficiary d) policyowner

The policyowner

all of the following information about a customer must be used in determining annuity suitability except? a) beneficiary's age b) tax status c) financial experience d) annual income

a) beneficiaries age

eligibility for association group

association must be in existence for at least 2 years and hold regular meeting annually; if a policy is contributory

when replacing life insurance, the duties of the replacing insurance company include all of the following except? a) providing to each purchaser a buyer's guide and a policy summary b) maintaining a copy of the notice regarding replacement and all sales proposals used for at least 5 years c) requiring from the agent with the application a copy of the notice regarding replacement d) sending to the existing insurer a copy of the notice regarding replacement immediately

b) maintaining a copy of the notice regarding replacement and all sales proposals used for at least 5 years It is for 3 years

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

it can protect the policy proceeds from creditors of beneficiaries

During replacement of life insurance, a replacing insurer must do which of the following?

obtain a list of all life insurance policies that will be replaced

eligible debtor group

policy can only be issued if group of eligible debtors is receiving new entrants at the rate of at least 100 persons per year

eligibility for credit union groups

policy must be issued for the benefit of all eligible members of credit union; credit union is policy holder

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

producer must provide the applicant with a Notice Regarding Replacement

which of the following is among the regulations set forth by the Florida Replacement Rule?

providing a written comparison and summary statement

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

if a claim is made on a policy during the grace period, the insurer is allowed to deduct the overdue premium and charge interest. What is the maximum amount of interest allowed to be charge?

8%