ch 8 life settlements quiz

In a life settlement contract who does the life settlement broker represent ? a.the beneficiary b.the life settlement intermediary c.the owner d.the insurer

c.the owner

What is the min age for applying for a life settlement broker license ? a.18 b.19 c.21 d.22

a.18

which of the following defines the owner of a life settlement contract ? a.an insurance provider b.a person who is selling the contract c.a person licensed under the contract d. a fiduciary for the contract

b.a person who is selling the contract

Stranger-orientated life insurance policies are in direct opposition to the principle of a.indemity b.insurable interest c.law of large numbers d.good faith

b.insurable interest

An investor buys a life policy on an elderly person in order to sell it for a life settlement . This is an example of a.a pre-arranged funeral plan b.a viatical settlement c.third-party ownership d.a STOLI policy

d.a STOLI policy

which of the following is not true of life settlements ? a.the seller must be terminally ill b.they could be used for key person coverage c.they could be sold for amount greater than the cash value d.they involve insurance policies with large face amounts

a..the seller must be terminally ill

Life expectancy is used in the calculation of which of the following ? a.cash values b.extended term c.dividends d.life settlements

d.life settlements

the person who for compensation,solicits,negotiates,or offers to negotiate a life settlement contract is the a.life settlement intermediary b.policyowner c.life settlement broker d.life settlement provider

c.life settlement broker

which of the following is not considered business of life settlement ? a.a producer discusses the advantages of a universal life policy and how the flexible premium allows the owner to control the cash value and death benefit income b.a producer mails life settlement advertising to a client outside of the state c.a producer tracks the progress of a life settlement contract he has submitted to a life settlement provider d.a producer discusses the advantages and disadvantages of a life settlement contract to a client

a.a producer discusses the advantages of a universal life policy and how the flexible premium allows the owner to control the cash value and death benefit income

If an association is applying for a life settlement broker's liscense which of the following requirements must the association meet ? a.establish a board of directors b.authorize a natural person to act individually as a broker c.employ a minimum of 10 individual brokers d.maintain an active life liscense for 1 year

b.authorize a natural person to act individually as a broker

the form used to establish the terms for both parties when a person sells his life insurance to a 3rd unrelated person is called a a.living benefits form b.life settlement contract c.unilateral contract d.certificate of authority

b.life settlement contract

Life Settlement contracts must be approved by which of the following ? a.the state attorney's general b.the superintendent of insurance c.the policyowner d.the NAIC

b.the superintendent of insurance

Under the privacy rule for HIPPA protected information includes all indvidually identifiable health information a.held in a computer format b.held or transmitted in paper form c.held or transmitted in any form d.transmitted electronically only

c.held or transmitted in any form

which of the following terms means as a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors ? a.mortality rate b.risk exposure c.morbidity d.life expectancy

d.life expectancy

In order to be a licensed life settlement broker a person must complete which of the following requirements ? a.have a licensed life producer for 6 months b.post a surety bond c.submit to a drug test d.submit fingerprints

d.submit fingerprints