Chapter 6
The Illinois Life and Health Insurance Guaranty Association is obligated to pay covered claims only if under the amount of
$300,000
if a viatical settlement provider moves his business the new address must be reported to the director within?
30days
The policy loans provision states that the insurer must advance to the policyowner a sum up to the policys cash value after the full amount if premiums have been paid for how long?
3years
According to the life insurance replacement regulations, which of the following would be an example of policy replacement?
A policy is reissued with a reduction in cash value
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
An unfair trade practice
What must and insurer present to a prospective policy purchaser before the initial premium is paid?
Buyers guide
A proposed policy form includes accelerated benefits.before the policy can be legally used, it must be approved by which of the following?
Department of insurance
Insurance agents are prohibited from referring to themselves as all of the following except?
Insurance producer
Variable life, group life, and annuities are EXEMPT under which rule?
Life solicitation
An agent uses an insurer's illustration. He obtains proper approval and does not change the illustration in any way. The illustration involves projected amounts, and the agent stipulates that the amount would not be guaranteed. Which of the following is true?
The agent must stipulate that the illustration is not part of the contract.
The Director must find all of the following to be true of a viatical supplement provider applicant before a license will be issued EXCEPT
The applicant posts a bond with the Department of Insurance
An insured has been diagnosed with a life threatening disease and is given approximately 6months to live. The insured is in a hard financial situation which will worsen with the upcoming medical expenses. Which of the following options could the insured utilize right away?
Viatical settlement
A legally acceptable attempt by an existing insurer to dissuade a current policyowner from the replacement of existing life insurance is called?
conservation
A new life insurance policy is derived from a policy that was recently terminated. Which of the following terms best describes this policy?
replacement
A transaction where new life insurance is purchased, and as part of the transaction, existing life insurance is lapsed or surrendered, is known as?
replacement