VOCAB 6

A purchaser of life insurance policy has the right to return the policy for a full refund of the premium if done within:

15 days of its delivery

How long is the free-look period for life insurance policies issued in Colorado?

15 days

An insured decided to replace his life insurance policy with one offered by a new insurer. After receiving the policy, he is unsatisfied with the provisions and decided to return it. Within how many days must be return the policy to receive a full premium refund?

30 days

How long is the grace period in group life insurance policies in this state?

31 days

Who notifies the replacement company regarding the replacement of a policy?

replacing company

The regulations regarding replacement apply to which of the following?

Renewable term

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

All of the following could own group life insurance EXCEPT

A group formed specifically to purchase Insurances

Producers in Colorado who intended to sell annuities are required to do which of the following?

Complete an initial 4-hour annuity training course

Which of the following would NOT constitute a policy replacement?

Converting group coverage to individual coverage

Which of the following is NOT considered to be a legal example of an Insurable interest in Colorado?

STOLI agreement

Under an employer-sponsored group plan, if the insurance on a person covered under the policy ceases because of termination of employment, which of the following is true?

The certificate owner is entitled to convert coverage to an individual policy without evidence of insurability.

Large group life insurance underwriting takes all of the following into consideration EXCEPT

The health of each individual in the group

All of the following are prohibited by individuals when using senior specific designations EXECPT

The individual has earned the designation from a profit organization

In which of the following situations has replacement occurred?

A policyowner borrows 25% of their cash value to buy a new policy

An insurer that does not pay a death benefit in a timely manner as required by state law, will be required to

Pay to the beneficiary an interest penalty from the date of the insured's death.

Before marketing an annuity contract to the consumer, an agent has a responsibility to determine whether the annuity is suitable for a client by

Questioning the client regarding her investments and other insurance products.

All of the following are the duties of the replacing producer where replacement is involved EXECPT

Send a letter to the policy owner of the right to receive information regarding the existing policy

Group life insurance policies delivered in Colorado must contain all of the following provisions EXCEPT

Statements on the applicant are considered warranties.

Group life

insurance written for members of a group, such as a place of employment, association, or a union

Replacing Insurer

the company that issues the new policy

Existing Insurer

the company whose policy is being replaced

An individual with a legal interest in the continued life of the insured defines the principle known as

Insurable interest

Who has the right to assign incidents of ownership under a group life insurance policy?

The individual insured

When an application for an annuity contract is taken face-to-face with the consumer, the producer must give all required disclosure documents

At or before at the time of application

Conservation

any attempt by the existing insurer or its producer to dissuade a current policyowner from the replacement of existing life insurance or annuity

Insurable Interest

something of value that, if lost, would cause you financial harm

Which of the following documents just be provided to the Policyowner or applicant during policy replacement?

Notice regarding replacement

When a policy is being replaced, the producer of the new policy must notify

The replacement company

Which of the following terms will be permissible in describing a life insurance policy in company advertisements?

Variable plan

When an insured terminated membership in the insured group, the insured can convert to

Whole life without proof of insurability

All of the following could own group life insurance EXECPT

A group formed specifically to purchase insurance

Which of the following statements is correct regarding the replacement of an existing life insurance policy?

A replacement notice must be given out before taking the Application

When group life insurance policies are issued in this state by a company not organized under the laws of Colorado, they may contain which of the following provisions?

Any provision required by the law of the state under which the company is organized.

If a consumer refuses to provide relevant information requested by the insurer or producer, or fails to provide complete or accurate information,

An insurance producer has no obligation to assure that a recommendation is suitable for the consumer

A person who violates the regulation regarding the use of senior certifications may be subject to all of the following penalties EXCEPT

Imprisonment by the order of the commissioner

Which of the following provisions prevents the insurer from denying a claim due to statements in the application after a certain period of time?

Incontestability

Under what circumstances will the proceeds payable under an employee's group life be taken to pay to a creditor of the employee?

When the creditor is named as the beneficiary of the proceeds by the insured employee