Chapter 3: Life Insurance Basics
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
3 days
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium.
Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?
The employer is the owner and beneficiary.
Which of the following is NOT true of life settlements?
The seller must be terminally ill.
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract.
Which of the following is the best reason to purchase life insurance rather than an annuity?
To create an estate.
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering an
Inspection report.
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
Buyer's Guide
What does "liquidity" refer to in a life insurance policy?
Cash values can be borrowed at any time.
Concerning AIDS and HIV risks, all of the following acts may subject an insurer to liability claims or fines EXCEPT
Declining the applicant for a positive HIV test result.
What is the purpose of key person insurance?
To lessen the risk of financial loss because of the death of a key employee.
What is the term used when a person sells his assets as a way to gain money?
Liquidation
