CH. 6 Quiz

An agent did not give the annuity applicant the disclosure document and the buyer's guide at the time of annuity application. when the annuity contract is issued, how long will the free- look period be?

15 days

The maximum amount of annual interest that mat be charged on a policy with a fixed interest rate is

8%

If an annuity application is taken in a face-to-face meeting, when is the latest the producer must provide the disclosure document and the buyer's guide to the applicant?

At the time of application

All of the following statements are correct regarding credit life insurance EXCEPT

Benefits are paid to the borrower's beneficiary.

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner

which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

In conversion of group life insurance to individual insurance, all the following are true EXCEPT

The insured must show proof on of insurabilty

Insurer XYZ is planning to start issuing variable contracts in this state. XYZ is a subsidiary of a larger insurance company authorized to transact variable insurance. Which of the following statements is true?

XYZ is considered authorized

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

credit life,

Which of the following would be a unique feature of a policy that offers participation in surplus?

dividends

Which of the following is correct regarding credit life insurance?

it insures the life of the debtor

A policy which stipulates that the company will return any unused premiums to policyowners, is called

participating

The initial amount of credit life insurance may not exceed

the amount to be repaid under the contract.

According to the Hawaii Insurance Code, an insured under a group life policy has the right to convert group coverage to an individual policy without providing insurability upon termination of employment is an application for the individual policy is made and the first premium is paid to the insurer within how many days after termination?

30 days

if a policyowner has a participating policy, when is the insurer required to start payment of dividends?

3rd policy year