Chapter 6

What does the Guaranty Association guard against ?

Insurer insolvency

What is the process by which a life insurance policy or annuity is reissued with a reduction in cash value or converted to reduce paid-up insurance?

Replacement

When replacing a life insurance policy or annuity, a producer has all of the following duties EXCEPT

Send a written communication to existing insurers advising them of the proposed replacement

Which of the following will NOT be included in the buyers guide ?

Specific information about the policy

Ensuring that a life insurance product matches the clients investment objectives, financial status, tax status, and needs is called

Suitability

A policy insurance policy may pay an accelerated benefit if the insured needs the money for which of the following ?

Terminal Illness treatment

A viatical settlement is an arrangement between a viatical company and a/an

Terminally ill insured

Which of the following would be EXEMPT from the policy replacement regulations for insurers ?

credit life insurance

What is the term for an insured who enters into viatical settlement

Viator

How long must an insurer keep all advertisements on file ?

4 years