Chapter 11 Quiz
Viatical settlements may be rescinding within what time period after the viator receives the proceeds?
15 days
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment
31
All of the following information must be disclosed to the viator prior to the execution of a viatical settlement contract EXEPT
Availability of stranger-originated life insurance (STOLI)
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits ae paid to the borrower's beneficiary
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life
Which of the following would be the beneficiary in credit life insurance?
Creditor
The usage of words or symbols that are similar to what entity is prohibited in life insurance advertisement?
Federal government
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice regarding replacement
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
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT
Reduction of premium
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
The initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract
Which of the following is TRUE regarding the insurance amount in a credit life policy?
The creditor can only insure the debtor for the amount owed
Which of the following CANNOT be included along with illustrations used to sell life insurance?
Vanishing premium information