Chapter 13 - Alabama Insurance Law Pertinent to Life Insurance Only
The Life Insurance Solicitation Regulation was promulgated to do the following:
Provide adequate information to consumers regarding relative cost of insurance products
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provide the applicant with a Notice Regarding Replacement
Which of the following is NOT true regarding minors purchasing insurance policies in this state?
Minors at the age of 14 are allowed to buy their own policies
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
Which of the following provisions would NOT be found in Term life insurance?
Policy Loan
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
Which of the following policies would NOT have a policy loans provision?
Term life
Illustrations used in the sale of life insurance policies must contain all of the following EXCEPT
the insured's financial classification
Who is responsible for the contents of life insurance advertising?
the insurer
Which of the following entities will most likely regulate an insurer's advertisement on local TV station?
the marketing department of the insurance company
According to the regulations on life insurance policy solicitation, what two documents must be presented to an applicant during the application process?
the policy summary and the buyer's guide
How many days before delivery must an annuity contract be filed with, and approved by, the Commissioner?
30 days
If an application for an annuity is gathered any way other than face-to-face, within how many gays after the insurer receives the completed application must the applicant be given a Buyer's Guide?
5 business days
The term "illustration" in a life insurance policy refers to
A presentation of non-guaranteed elements of a policy
If the Commissioner has not approved or disapproved any insurance form by the end of the judgment period, the insurer
Can assume the form is approved
Misrepresenting an insurance policy as a share of stock is an example of which of the following?
False advertising
Using names or titles that have tendency to misrepresent the true nature of a policy is an example of what illegal practice?
False advertising
Insurance policies stay in force even if the insureds are overdue on the premium payments. What phrase best describes this concept?
Grace period
All advertisements pertaining to life insurance policies are the responsibility of the
Insurer
What is the minimum age for an individual to buy an insurance policy in Alabama?
15
When the insurer stipulates the time period for payment of claims, how soon must the insurer pay a death benefit claim after receiving the proof of death?
2 months
Insurance policies are incontestable if they have been in effect for at least
2 years
What is the proposal used in the selling of life insurance that depicts the non-guaranteed elements of the policy over a period of time?
Illustration
Which of the following entities was created to protect insureds against an insurer's insolvency?
The Life and Disability Insurance Guaranty Association
