Life Insurance chapter 9

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What is the maximum life insurance coverage available to the state residents through the Wisconsin State Life Insurance Fund

$10,000Th

No individual life insurance policy may be contested after it has been in force for

2 years

The insurer must maintain copies of all signed illustrations for a minimum of how many years after the policy is no longer in force?

3

What is the grace period of a life insurance policy?

31 days

When replacing a policy, an insurer must maintain a file containing copies of all statements for

5 years

Producers are required to comply with strict regulations when advising senior consumers about annuities. Which of the following would be considered a senior consumer?

Any person age 65 or older

What describes a ledger or proposal used to show both guaranteed and non-guaranteed elements of the policy?

Basic illustration

When an applicant purchased a life insurance policy, the agent dated the application 4 months prior. When asked by the applicant, the agent said he was allowed to backdate policies up to 6 months if it would

Lower the insured's premium

The Interstate Insurance Product Regulation Compact is a contract between

Member states

All of the following are required in a life insurance illustration EXCEPT

Name and home address of agent

Using a class designation for beneficiaries means

Naming beneficiaries as a group

Who has the right to change the beneficiary in a life insurance policy?

Policyowner

Anytime a life insurance transaction accompanies a securities transaction, which rule must be followed?

Proposal rule

Which of the following is FALSE regarding the life insurance replacement rules?

Replacement forms must be kept on file for 7 years

If a policy is marketed with an illustration who must sign the illustration?

The applicant and the agent

A policyowner neglects to pay his life insurance premium on time. He dies ten days later. Which of the following is true?

The death benefit will be paid, minus the premium

What happens to policy coverage during the grace period?

The insured is covered as he/she was before the grace period

No one may perform, offer to perform, or advertise any service in life insurance and securities, unless

The person is licensed and authorized in both areas

The policyowner of life insurance policy forget to pay his monthly premium and then does 10 days later. Which of the following is true?

The policy will pay full death benefits, less the premiums that were due

An insured innocently omitted a health problem in her life insurance application that would have influenced her premium amounts. The policy is issued, and the insurer discovers the error 3 years later. Which of the following will most likely happen?

The premium amounts will remain unchanged

An applicant accidentally writes on her application that she is 10 years older than she actually is. The policy is issued, and the insurer discovers the error several months later. Which of the following is most likely to happen to the premiums?

They will be charged according to her actual age

A Buyer's Guide must be presented

When the application is taken

What is the purpose of a proposal for life insurance policy sold in connection with a security?

To provide the policyholder with clear and accurate description of the policy coverage

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called

Class designations

When an agent makes a life insurance proposal in connection with the sale of a security, he must do all of the following EXCEPT

Disclose the full financial history of the insurer that is providing the life insurance

Who does the Interstate Product Regulation Compact serve?

Insurers

Which of the following does NOT apply to variable contracts?

Insurers do not have to provide any financial information or history of the company

In order for an intermediary to sell or offer to sell a variable contract he/she must have which of the following types of licenses?

Life and Series 6 or Series 7


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