Chapter 11: NV Statutes & Regulations Common to Life and Health Only

almost any means of written, verbal or illustrative communication is considered advertising and includes the following:

*printed and published material and descriptive literature used in any media *descriptive literature and sales aids issued by insurers for presentation to the public *prepared sales talks and presentations developed for use by agents

all accident and health insurers are required to maintain a complete file of all advertisements and should be retained for how long

3 years

How many days after the death of an insured does an insurer have to pay group life insurance policy benefits?

30 days

When group coverage terminates, the insured may convert coverage to an individual policy without evidence of insurability within

31 days

when insurance coverage ends due to the insured's termination of employment, the insured must be entitled to convert to an individual life policy w/out evidence of insurability, provided the app and premium is received within

31 days

If a group life policy is terminated by the insurer, every person in the group is entitled to convert to an individual life insurance policy if he or she has been insured under the current plan for at least

5 years

all of the following are required provisions in all group life insurance policies EXCEPT] A) nonforfeiture benefits B) incontestability C) misstatement of age D) grace period

A

all of the followinig statements are correct regarding credit life insurance EXCEPT A) benefits are paid to the borrower's beneficiary B) the amount of insurance permissible is limited per borrower C) premiums are usually paid by the borrower D) benefits are paid to the creditor

A

What entity ultimately determines if an advertisement is deceptive or confusing?

commissioner

what type of insurance is known as consumer credit insurance?

credit insurance

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

credit life

what type of insurance would you recommend for someone who wants to insure the life of a debtor in connection to a specific loan?

credit life insurance

what's the difference between credit life insurance and credit accident and health insurance?

credit life is defined as insurance on the life of a debtor, made in connection with a specific loan or other credit transaction credit accident and health insurance means insurance on a debtor to provide indemnity for a specific loan-while the debtor is disabled

except otherwise provided by the Insurance Code, no policy of group life insurance may be

delivered in NV to a group which was formed for the purpose of purchasing one or more policies of group life insurance

if an insured under the group policy dies during the period of conversion to an individual policy, how much will be payable as a claim and under which policy?

the amount of life insurance which he/she would have been entitled to will be payable as a claim under the group policy, whether or not the app for the individual pol has been made

who pays the premium, is the owner and beneficiary of a credit life policy?

the borrower pays the premium but the creditor is the owner and the beneficiary of the policy

what does credit life and health insurance cover?

the life and disability of a debtor during the time a loan is outstanding

all group life insurance policies must be issued in this state with the following provisions:

*31 day grace period for payment of any premiums due after the first premium payment *incontestability (except for nonpayment of premium), after it has been in force for 2 years from date of issue *entire contract: if an app is used, it must be attached to the pol when issued *statements of the insured made in the app are considered to be representations, not warranties *insurability: the insurer reserves the right to require a person to furnish evidence of insurability as a condition of coverage *misstatement of age: premiums, benefits, or both, will be adjusted in the event the age of the insured has been misstated *payment of benefits: upon the death of the insured, the death benefit is payable to the designated beneficiary. if no beneficiary is designated, the insurer may pay up to $500 to any incurring funeral or other expenses related to the insured illness or death *certifacte: the insurer must provide an individual certificate to each person covered, with a statement containing the summary of benefits *proceeds of benefits: an insurer must pay the proceeds of any benefits under a group life insurance policy not more than 30 days after the death of the insured. if the proceeds are not paid within this period, the insure must pay interest on the proceeds, at a rate that is not less than the current rate of interest on death proceeds on deposit with the insurer, from the date of the insured to the date when the proceeds are paid

all group health policies issued in this state must contain the following provisions:

*statements of the insured: all statements made by the applicant or by the insured are considered representations and not warranties, except in cases of fraud *certificate of coverage: the insurer is required to furnish to the policyholder for delivery to each insured employee a statement in summary from of the essential features of the insurance coverage, and to whom the benefits are payable *new members and dependents: a provision must allow an originally insured group to add from time to time eligible new employees or dependents *home care and hospice care: a provision for benefits for expenses from care at home and health supportive services if prescribed by a physician and would have been covered by the policy if performed in a medical facility

What is the min # of ppl that can be covered by a group insurance plan?

2

group health insurance is a form of health insurance coverage that covers groups of

2 or more persons, formed for a purpose other than obtaining insurance

Which of the following would be an allowable purpose of forming a group to be covered by a life insurance policy? A) obtaining lower insurance rates B) assembling a group of employees C) claim of benefits D) obtaining group insurance

B

which of the following is TRUE about credit life insurance? A) debtor is the policy beneficiary B) creditor is the policyowner C) debtor is the annuitant D) creditor is the insured

B

which of the following is NOT allowed in credit life insurance? A) creditor having a collateral assignment on the policy B) creditor requiring that a debtor has a life insurance C) creditor becoming a policy beneficiary D) creditor requiring that a debtor buys insurance from a certain insurer

D

What provision required in group life insurance police's states that a policy application must be attached to the policy when issued?

Entire contract

insurability

The acceptability of an applicant who meets an insurance company's underwriting requirements for insurance.

debtor

a borrower of funds

nonforfeiture provision

a clause that stipulates a policyowner's right to guaranteed values in a life insurance policy

creditor

a lender of funds

if a group life policy is issued other than term, it must contain

a nonforfeiture provision, which must be the same as the individual life policies

when an insured under a group plan becomes eligible for conversion to an individual policy, the insurer must provide

a notice of the right to convert to an individual policy atleast 15 days prior to the expiration date of such period

credit insurance

a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor

how is a credit insurance policy usually written?

as decreasing term insurance and may be written as an individual policy or as a group plan; it can't pay more than the balance of the debt

policy proceeds

benefits payable under the policy conditions (in life insurance, the death benefit)

All advertisements are the responsibility of the

insurer

which of the following is correct regarding credit life insurance? A) it insures the life of a creditor B) it has a max term of 20 yrs C) it insures the life of a debtor D) it is purchased on an installment basis

C

which of the following is TRUE regarding the insurance amount in a credit life policy? A) the creditor may insure the debtor for an unlimited amount of coverage B) allowable amount of coverage is determind by the State Insurance Commissioner C) the amount of coverage can be greater than the amount owed D) the creditor can only insure the debotr for the amount owed

D

which of the following statements could NOT be used in an ad of life insurance policies in Nevada? A) untrue statements of the insurer's assests or financial standing B) imply that claim settlements will be generous beyond the terms of the policy C) statements that make unfair or incomplete comparisons of another insurer or the policies D) any of the above would be in violation of the Insurance Code

D