Life Insurance
What are the strategies used by underwriters to prevent adverse selction?
Restriction of coverage, refusal to accept a risk and accepting a risk at a higher rate.
When risks with higher probability of loss are seeking insurance more often than other risks, this is known as what?
Adverse Selection
What is the name of the insured who enters into a viatical settlement? AViatical broker BViator CThird party DContingent
BViator Viator means the owner of a life insurance policy who enters into or seeks to enter into a viatical settlement contract.
Which of the following Life Insurance policies would be considered interest sensitive? AAdjustable life BWhole life CIncreasing term DUniversal life
DUniversal life As well as being a flexible premium policy, universal life is also an interest-sensitive policy. The insurer credits the cash value in the policy with a current (nonguaranteed) interest rate and backs the cash value with a contract (lower guaranteed) rate of interest.
For the purposes of insurance, what is risk?
Uncertainty of Loss
What entities make up the Medical Information Bureau?
Insurers
An applicant wants to buy a policy that has a cash value element. Which type should she buy? APermanent BStock CInvestment DTerm
A. Permanent Unlike term insurance, permanent insurance provides lifetime death protection and a savings or cash value option.
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A5 days B7 days C10 days D3 days
A5 days Consumers must be advised that they have a right to request additional information concerning investigative consumer reports, and the insurer or reporting agency has 5 days to provide the consumer with the additional information.
All of the following are personal uses of life insurance EXCEPT ABuy-sell agreement. BSurvivor protection. CEstate creation. DCash accumulation.
ABuy-sell agreement. Personal uses of life insurance include survivor protection, estate creation and conservation, cash accumulation, and liquidity. A buy-sell agreement is for business uses of life insurance.
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced? ACost comparison methods BPolicy cost guides CConsumer price indices DPolicy cost indices
ACost comparison methods Cost comparison methods are used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced.
Which of the following is NOT a type of information that needs to be gathered in order to determine the value of someone's life when using the needs approach? AEstimated longevity BOutstanding debt CMortgages DExpenses
AEstimated longevity There are four main types of information that an insurer needs to obtain in order to determine the value of someone's life: debt status, income, mortgage, and expenses. Longevity is not a factor in the personal financial planning process.
Which of the following is NOT true regarding the needs approach method of determining the value of an individual's life? ANeed is predicted using the number of years until the insured's retirement. BCoverage is based on the predicted needs of that family. CThe death of an insured must be premature. DIt must be assumed that the death of the insured will occur immediately.
ANeed is predicted using the number of years until the insured's retirement. In the needs approach method, need is determined by the predicted needs of the family after the premature death of the insured, which must be assumed will happen immediately. The policy allows for benefits to be collected upon the insured's death.
Which of the following stipulates that life insurance premiums can be paid in advance of policy issuance? APayment of premium clause BGrace period provision CPolicy issuance clause DPrepayment clause
APayment of premium clause The clause that allows for life insurance premiums to be paid in advance is called the payment of premium clause.
Based on Human Life Value Approach, which of the following is NOT used to calculate an individual's life value? APredicted needs of the family after the insured's death. BInsured's current and future income. CInsured's annual expenses. DEffect of inflation on income over time.
APredicted needs of the family after the insured's death. The Human Life Value Approach to determining the value of an individual's life requires the calculation of probable future earnings of the insured, which involves wages, expenses, inflation, amount of time until retirement, and the time value of money. Predicted needs of the family after the insured's death are used in the needs approach.
Which of the following is correct concerning the taxation of premiums in a key-person life insurance policy? APremiums are not tax deductible as a business expense. BPremiums are tax deductible by the key employee. CPremiums are tax deductible as a business expense. DPremiums are taxable to the employee.
APremiums are not tax deductible as a business expense. The business cannot take a tax deduction for the expense of the premium. However, if the key employee dies, the benefits paid to the business are usually received tax free.
Agent D submitted an application for life insurance on client A. No money was sent with the application. When Agent D attempted to deliver the policy, he discovered that A had suffered a heart attack since the application was taken. The agent should AReturn the policy to the insurer. BMail the policy to the address shown and enclose a statement for the premium. CAttempt to collect the premium and deliver the policy anyway. DKeep the policy until he determines whether A is going to recover.
AReturn the policy to the insurer. The policy is to be delivered to the applicant who is in continued good health. If the health of the insured has deteriorated since the application was completed and no money was taken, the agent should not accept money or deliver the policy unless directed to do so by the insurer.
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT ASigned waiver of premium. BStatement of good health. CPayment of premium. DDelivery receipt.
ASigned waiver of premium. The policy does not go into effect until the premium has been collected. If the premium was not collected at the time of the application, the producer may also be required to get a Statement of Good Health from the applicant at the time of policy delivery. Waiver of premium is a rider that can be added to a life insurance policy, and not something to be obtained from the applicant.
All of the following are true of key person insurance EXCEPT AThe plan is funded by permanent insurance only. BThere is no limitation on the number of key employee plans in force at any one time. CThe employer is the owner, payor and beneficiary of the policy. DThe key employee is the insured.
AThe plan is funded by permanent insurance only. Key Person coverage may be funded by any type of life insurance.
Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly? AThe producer BThe beneficiary of the applicant CThe insurance company DThe applicant
AThe producer It is the responsibility of the producer (agent) to make sure an application for insurance is filled out completely and correctly.
If a person does not comply with an order issued within 2 weeks after the Commissioner has given notice, for each day that the violation continues, the Commissioner may issue a fine of up to A$3,000. B$5,000. C$1,500. D$2,000.
B$5,000. The Commissioner may obtain a temporary or permanent injunction or restraining order for any violations of insurance laws. If a person does not comply with an order issued within 2 weeks after the Commissioner has given notice, the Commissioner may issue a forfeiture of up to $5,000 for each day that the violation continues.
A Straight Life policy has what type of premium? AA variable annual premium for the life of the insured BA level annual premium for the life of the insured CAn increasing annual premium for the life of the insured DA decreasing annual premium for the life of the insured
BA level annual premium for the life of the insured Straight Life policies charge a level annual premium for the lifetime of the insured and provide a level, guaranteed death benefit.
Which of the following types of agent authority is also called "perceived authority"? AFiduciary BApparent CExpress DImplied
BApparent Apparent authority (also known as perceived authority) is the appearance or the assumption of authority based on the actions, words, or deeds of the principal or because of circumstances the principal created.
An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require? AStatement of Continued Good Health BAttending Physician Statement CA complete medical record DSworn health affidavit from the applicant
BAttending Physician Statement The APS is used to obtain medical DETAILS about a specific condition which has shown up in the application; the insurance company orders the information directly from the physician, using a signed authorization which was part of the application.
Which of the following would describe a legal document which would dictate who can buy a deceased partner's share of a business and for what amount? ASplit dollar agreement BBuy-sell agreement CProfit and loss agreement DKey person agreement
BBuy-sell agreement A Buy-Sell agreement (also referred to as a business continuation agreement) is a legal contract that determines what will be done with a business in the event that an owner dies or becomes disabled.
In the event the key employee quits or is terminated, what provision allows the policyowner to transfer coverage to the replacement employee, provided the new employee provides evidence of insurability? AFree look BChange of insured CConsideration DMisstatement of age
BChange of insured The change of insured provisions is found in some life insurance policies that are owned by businesses and to insure the life of a key employee. In the event the key employee quits or is terminated, the owner (business) may transfer the coverage to the replacement employee, subject to evidence of insurability.
A person that markets insurance but does not include an insurer is called a AConglomerate. BFirm. CBroker. DSolicitor.
BFirm. A "firm" means a person that markets insurance but does not include an insurer.
All of the following are business uses of life insurance EXCEPT AFunding business continuation agreements. BFunding against company's general financial loss. CCompensating executives. DFunding against financial loss caused by the death of a key employee.
BFunding against company's general financial loss. Both life and health insurance can be used for a variety of purposes in a business setting, including the funding of business continuation agreements, compensating executives, and protecting the firm against financial loss resulting from the death or disability of key employees.
Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors? AMorbidity BLife expectancy CMortality rate DRisk exposure
BLife expectancy Life Expectancy is an important concept in life settlement contracts. It refers to a calculation based on the average number of months the insured is projected to live due to medical history and mortality factors (an arithmetic mean).
Which of the following would be the best option that would help the surviving spouse of the insured to put her child through daycare after the insured's death? AEstate conservation BLife insurance proceeds CState Education Waiver DViatical settlement
BLife insurance proceeds There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Daycare is considered to be among these expenses.
In a single employer group plan, what is the name of the policy issued to the employer? ACertificate of authority BMaster contract CCertificate of insurance DEmployer-insurer contract
BMaster contract In group insurance, the actual policy (master policy/contract) is issued to the sponsor of the group, which is often an employer.
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will AAutomatically pay the policy proceeds. BPay the policy proceeds only if it would have issued the policy. CPay the policy proceeds up to an established limit. DNot pay the policy proceeds under any circumstances.
BPay the policy proceeds only if it would have issued the policy. The conditional receipt says that coverage will be effective either on the date of the application or the date of the medical exam, whichever occurs last, as long as the applicant is found to be insurable as a standard risk, and policy is issued exactly as applied for.
All of the following are characteristics of group life insurance EXCEPT ACertificate holders may convert coverage to an individual policy without evidence of insurability. BPremiums are determined by the age, sex and occupation of each individual certificate holder. CGroup life insurance is written as a master policy. DIndividuals covered under the policy receive a certificate of insurance.
BPremiums are determined by the age, sex and occupation of each individual certificate holder. Premiums are determined by the age, sex and occupation of the entire group, not for each individual insured.
An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. If the insured dies, how much will be paid out? A$10,000 B$40,000 C$50,000 D$60,000
C$50,000 The cash value of a variable life insurance policy is not guaranteed. However, even if investments devalue significantly, they cannot be lower than the initial guaranteed benefit amount.
Any person who violates an insurance statute or rule of Wisconsin can be fined up to A$2,000. B$3,000. C$10,000. D$15,000.
C. $10,000 Any person who violates an insurance statute or rule of Wisconsin can be fined up to $10,000 or imprisoned for up to 3 years and 6 months, or both. These penalties apply unless a specific penalty is provided elsewhere in the statutes.
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? ARepresentation BAdhesion CConsideration DGood faith
C. Consideration The binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss.
Which authority is NOT stated in an agent's contract but is required for the agent to conduct business? AAssumed BExpress CImplied DApparent
C. Implied Implied authority is not written in the agent's contract but is required in order for the agent to conduct business. Implied authority exists because not every single detail of an agent's authority can be written in a contract.
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT AThe employer pays a bonus to a selected employee to fund the policy. BIt is considered a nonqualified employee benefit. CThe policy is owned by the company. DAny type of insurance policy may be used.
C. The policy is owned by the company. The policy is owned by the employee.
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance? AA married person has an insurable interest in their spouse. BAn individual has an insurable interest in their own life. CA debtor has an insurable interest in the life of a lender. DBusiness partners have an insurable interest in each other.
CA debtor has an insurable interest in the life of a lender. A lender has an insurable interest in the life of a debtor, but only to the extent of the debt. The debtor does not have an insurable interest in the life of the lender.
In insurance, an offer is usually made when AThe agent hands the policy to the policyholder. BAn agent explains a policy to a potential applicant. CAn applicant submits an application to the insurer. DThe insurer approves the application and receives the initial premium.
CAn applicant submits an application to the insurer. In insurance, the offer is usually made by the applicant in the form of the application. Acceptance takes place when an insurer's underwriter approves the application and issues a policy.
Which of the following is the basic source of information used by the company in the risk selection process? AWarranty BConsumer report CApplication DAgent's report
CApplication The application is the basic source of information an insurer uses in the risk selection process.
Which of the following is INCORRECT regarding a $100,000 20-year level term policy? AIf the insured dies before the policy expired, the beneficiary will receive $100,000. BThe policy will expire at the end of the 20-year period. CAt the end of 20 years, the policy's cash value will equal $100,000. DThe policy premiums will remain level for 20 years.
CAt the end of 20 years, the policy's cash value will equal $100,000. Term policies do not develop cash values. All the other statements are true.
A key person insurance policy can pay for which of the following? AWorkers compensation BHospital bills of the key employee CCosts of training a replacement DLoss of personal income
CCosts of training a replacement A key person insurance policy will pay for costs of running the business and replacing the employee.
In the Executive Bonus plan, who is the owner of the policy, and who pays the premium? ABoard of directors is the owner, and the board of directors pays the premium. BCompany is the owner, and the company pays the premium. CExecutive is the owner, and the executive pays the premium. DCompany is the owner, but the executive pays the premium.
CExecutive is the owner, and the executive pays the premium. Executive buys the policy and pays the premium, and the employer reimburses the executive for cost (or pays a bonus in the amount of the premium). Since the executive is receiving compensation, the amount paid by the employer would be considered taxable income.
A Return of Premium term life policy is written as what type of term coverage? ARenewable BLevel CIncreasing DDecreasing
CIncreasing Return of premium (ROP) life insurance is an increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid.
Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives? AAgent's Report BGeneral Information CMedical Information DInspection Report
CMedical Information Part 2 - Medical Information of the application includes information on the prospective insured's medical background, present health, any medical visits in recent years, medical status of living relatives, and causes of death of deceased relatives.
Which of the following will be included in a policy summary? AComparisons with similar policies BPrimary and secondary beneficiary designations CPremium amounts and surrender values DCopies of illustrations and application
CPremium amounts and surrender values A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years.
An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information? AReceive a signed statement from the insured which authorizes the investigation BSign a waiver that the information will be kept confidential CPresent the insured with a Disclosure Authorization Notice DReceive written permission from the Department of Insurance
CPresent the insured with a Disclosure Authorization Notice Before an insurer can obtain information from investigators regarding an applicant, it must first present the insured with a Disclosure Authorization Notice. This notice states the insurer's information collection practices and how the information will be used.
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? AThe Guaranty Association BConsumer Privacy Act CThe Fair Credit Reporting Act DUnfair Trade Practices Law
CThe Fair Credit Reporting Act The purpose of the Fair Credit Reporting Act is to protect consumers against the circulation of inaccurate or obsolete information and to ensure that consumer reporting agencies are fair and equitable in their treatment of consumers.
In a life settlement contract, whom does the life settlement broker represent? AThe beneficiary BThe life settlement intermediary CThe owner DThe insurer
CThe owner Life Settlement Broker is a person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. Life settlement brokers represent only the policyowners.
All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT AThe employer pays a bonus to a selected employee to fund the policy. BIt is considered a nonqualified employee benefit. CThe policy is owned by the company. DAny type of insurance policy may be used.
CThe policy is owned by the company. The policy is owned by the employee.
What must happen when an individual policy or annuity has been personally delivered to the policyowner? AThe producer must go over the policy with the policyowner. BA notary public must witness the exchange. CThe policyowner must sign a delivery receipt. DThe policyowner must pay the annual premium in full.
CThe policyowner must sign a delivery receipt. When an individual policy or annuity is delivered by hand to the policyowner, a delivery receipt must be signed. The receipt will be in duplicate and state the date the contract was received.
Which of the following is NOT true of life settlements? AThey could be sold for an amount greater than the current cash value. BThey involve insurance policies with large face amounts. CThe seller must be terminally ill. DThey could be used for a key person coverage.
CThe seller must be terminally ill. With Life Settlements, unlike with viatical settlements, the seller does not need to be terminally ill. They usually involve life insurance policies with a face amount of $250,000 or more, "key-person" coverage, corporate owned policies, or policies representing excess coverage that is no longer needed, and could be sold for an amount greater than the current cash value.
The insurer must be able to rely on the statements in the application, and the insured must be able to rely on the insurer to pay valid claims. In the forming of an insurance contract, this is referred to as AReasonable expectations. BA warranty. CImplied warranty. DUtmost good faith.
D. Utmost good faith The insurer must be able to rely on the statements given by the insured in the application. The insured must be able to rely on the insurer's promise to pay covered losses.
How long must a life insurance policy be in force before the owner can enter into a viatical settlement contract? A90 days B6 months C1 year D2 years
D2 years No person may enter into a viatical settlement contract within 2 years (24 months) after issuance of the policy.
At times, it is possible for a life insurance agent to affect a savings of premium rates by backdating an application for life insurance. What is the maximum amount of time that an application may be backdated? AOne year BIt is not allowed. CIt varies from insurer to insurer. D6 months
D6 months No policy in this state can take effect more than 6 months prior to the original application date, therefore, allowing an agent to backdate a policy applicant's age if his/her birthday was less than 6 months ago.
Insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. What contract characteristic does this describe? AUnilateral BConditional CPersonal DAdhesion
DAdhesion A contract of adhesion is prepared by only the insurer; the insured's only option is to accept or reject the policy as it is written.
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? ATerm insurance only BPermanent insurance only CUniversal life insurance only DAny form of life insurance
DAny form of life insurance Any form of Life insurance may be used to fund a buy-sell agreement.
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his AExperience Rating. BGroup rate. CInsurer's scheduled rate. DAttained age.
DAttained age. If an employee terminates membership in the insured group, the employee has the right to convert to an individual whole life policy without proving insurability. The insurer will determine what type(s) of policy an employee may convert to, but it must be issued at a standard rate, based on the individual's attained age.
When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n) AKey person policy. BFraternal association. CAleatory contract. DExecutive bonus.
DExecutive bonus. When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called an executive bonus.
All of the following actions can be described as twisting EXCEPT AMisrepresenting the terms and conditions of the existing policy to make the new one more attractive BEmbellishing the terms of the proposed policy in order to convince the insured to switch CMaking an incomplete comparison between the existing and proposed policies DExplaining to client the advantages of permanent insurance over term and suggesting changing policies
DExplaining to client the advantages of permanent insurance over term and suggesting changing policies Twisting is a misrepresentation, or incomplete or fraudulent comparison of insurance policies that persuades an insured/owner, to his or her detriment, to cancel, lapse, or switch policies from one to another.
An insured has a life insurance policy with a face amount of $2,000. He pays a premium each week to the agent who sold the policy. What kind of policy does the insured have? ACredit life BOrdinary life CFranchise life DIndustrial life
DIndustrial life Industrial life insurance is written on an individual basis in small amounts, with premium payable weekly or monthly. As a general rule, these policies are written nonmedically.
Which of the following is usually true of a participating life insurance policy? AIt may be converted to a term life policy. BIt pays dividends to stockholders. CIt assesses premiums against stockholders. DIt pays dividends to policyowners.
DIt pays dividends to policyowners. Participating is a term used to refer to any insurance policy that distributes its dividends by cash payments, reduced premiums, units of paid-up life insurance, a savings program, or by the purchase of term insurance. Non-participating policies, such as term life, don't pay dividends but they may also offer lower premiums for that reason.
Attempting to determine how much insurance a family would require based upon their financial objectives is known as AHuman life value approach. BEstate planning. CViatical approach. DNeeds approach.
DNeeds approach. Needs method determines how much benefit would be necessary to replace the loss income and increased expense should the insured die prematurely.
Which of the following would provide an underwriter with information concerning an applicant's health history? AA medical examination BThe agent's report CThe inspection report DThe Medical Information Bureau
DThe Medical Information Bureau An agent's report and inspection report provide personal information. Medical exams provide information on current health. Only the MIB will provide information about an applicant's medical history.
A corporation is the owner and beneficiary of the key person life policy. If the corporation collects the policy benefit, then AThe benefit is subject to the exclusionary rule. BIRS has no jurisdiction. CThe benefit is received as taxable income. DThe benefit is received tax free.
DThe benefit is received tax free. Should a key person die, the benefit is treated as a reimbursement to the business for loss of services from that key person.
Who is the owner and who is the beneficiary on a Key Person Life Insurance policy? AThe employer is the owner and the key employee is the beneficiary. BThe key employee is the owner and beneficiary. CThe key employee is the owner and the employer is the beneficiary. DThe employer is the owner and beneficiary.
DThe employer is the owner and beneficiary. With the key-person coverage, the business (the employer) is the applicant, owner, premium payer, and beneficiary.
Which of the following statements is correct regarding a whole life policy? ACash values are not guaranteed. BThe policy premium is based on the attained age. CThe death benefit may increase or decrease during the policy period. DThe policyowner is entitled to policy loans.
DThe policyowner is entitled to policy loans. Whole life policies offer level premium based on the issue age, guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans.
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT AThe length of coverage. BThe premium. CThe amount of insurance. DThe type of investment.
DThe type of investment. Typically, the owner of an adjustable life policy has the following privileges: increasing or decreasing the premium, changing the premium-paying period, increasing or decreasing the face amount of coverage, or changing the period of protection.
All of the following are characteristics of a group life insurance plan EXCEPT AThe participants receive a Certificate of Insurance as their proof of insurance. BA minimum number of participants is required in order to underwrite the plan. CThe cost of the plan is determined by the average age of the group. DThere is a requirement to prove insurability on the part of the participants.
DThere is a requirement to prove insurability on the part of the participants. There is no individual underwriting for group life insurance.
Which of the following statements regarding deferred compensation funds is INCORRECT? AThey can be established by employers. BThey can be made with cash deposits to an annuity. CThey generally provide additional retirement benefits. DThey are usually qualified plans.
DThey are usually qualified plans. Deferred Compensation Funding refers to any employer retirement, savings, or other deferred compensation plan that is not a qualified retirement plan. Funding involves a contractual commitment between the employer and employee to pay compensation in future years. These plans are typically made with selected employees to provide additional retirement benefits.
Which of the following would least likely be considered a legitimate need that would be paid by insurance proceeds? ATravel expenses for family to come to the funeral BDebt cancellation CDay care DVacation travel expenses
DVacation travel expenses There are many legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Vacation travel expenses are most likely to be considered a luxury and not a need.
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? AEstate liquidation BNonpayment of premium CChange of beneficiary DViatical settlement
DViatical settlement A viatical statement allows an insured with a life-threatening condition to sell the existing policy in order to receive benefits when they are most needed. Viators typically receive a percentage of the policy's face value from the person who purchases the policy.
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than AUpon issuance of the policy. BWithin 30 days after the first premium payment was collected. CPrior to filling out an application for insurance. DWith the policy.
DWith the policy. If a life insurance policy contains a free-look period of at least 10 days, the buyer's guide can be delivered with the policy. If it doesn't, the buyer's guide must be delivered prior to accepting the initial premium.
Conditions that increase the change of loss are known as what?
Hazards
What two elements are necessary for a life insurance contract to have a legal purpose?
Insurable interest and consent
The reduction, decrease, or disappearance of value of the person or property insured in a policy is known as what?
Loss
What is the term for the causes of loss insured against in an insurance policy?
Peril