Life Insurance CH.6 (NJ Laws, Rules, and Regulations Pertinent to Life Only)
By how many days does discontinuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss?
0 days
The buyers guide and policy summary can be delivered with the policy or earlier if the policy contains an unconditional refund provision of at least
10 days
During policy replacement, the replacing insurer must notify existing insurers within what time period?
5 business days
An insurer must keep all sales materials for at least how long?
5 years
If a credit life policy lapses for non-payment before the debt is satisfied, within how many days must the creditor either refund the premium paid or apply it against the debt?
60 days
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrowers beneficiary
Which of the following is true about credit life insurance?
Creditor is the policy owner (also beneficiary)
Which of the following is not allowed in credit life insurance
Creditor requiring that a debtor buys insurance from a certain insurer
Misrepresenting an insurance policy as a share of a stock is an example of which of the following?
False advertising
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 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 entities is held responsible for the contents of an insurers advertisement on Local TV station?
The insurance company
A small employer owns a group health insurance policy. The employer neglects to pay the premium by the payment due date. The employer fails to pay the premium yet again by the end of the grace period. Which of the following will happen?
The policy will terminate
If an insurer requires an application in order to renew a life insurance policy, it is the insurer's responsibility to send one to the insured
Within 30 days of the insured request
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
