Texas Statutes and Rules Pertinent to Life Insurance ONLY
How long is the grace period in group policies?
31 days
Terminated EEs and their dependents have how many days to convert to individual policy issued WITHOUT evidence of insurability?
31 days; The new policy can be any type of ins. EXCEPT term. the premium will be based on the current age of the insured
misstatement of age on insurance application FOR A GROUP POLICY. what does insurer do?
ADJUST THE PREMIUM
What is used to compare the cost of one life ins. policy against another in order to guide prospective purchasers to policies that are competitively priced?
Cost comparison methods
The usage of words or symbols that are similar to what entity is prohibited in life ins. ads?
Federal government
What should insurers strive to eliminate from illustrations?
Footnotes and caveats
What MUST be included in all life ins. ads?
Identity of the actual insurer
credit life insurance
Insures the life of a debtor
Incontestability, Grace period and Misstatement of age
Mandatory life insurance policy provisions
grace period
Period of time during which an overdue premium may be paid without a lapse of the policy.
incontestability
With a(n) ____ clause, insurance cannot be cancelled during a specified period of time.
Is it illegal for an ins. company to advertise that it is the leader of the financial industry and therefore pays the most claims each year?
Yes; ads must not mislead the public in terms of financial standing
insurer's assets, corporate structure, financial standing, age, or position in the insurance business
accurately representations in advertisements
In credit life insurance, the ____ is the policyowner and the beneficiary
creditor
In credit life insurance, the ______ is the insured.
debtor
Ad must accurately rep. what?
insurer's assets, corporate structure, financial standing, age, or position in the insurance business
Group life policies must contain a "...................." provision.
misstatement of age
Policy backdating
not a mandatory provision; backdating a policy more than 6 months is prohibited
vanishing premium
not allowed on illustrations
All advertisements are the responsibility of whom?
the insurer
Cost comparison methods
used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced
Illustration used to sell life insurance cannot use the term "________ _______" - or any similar term - that implies the policy becomes paid up
vanishing premium
caveats
warning; specific conditions
The amount of time the insurer must pay death claims upon receipt of a written proof of death and the right of the claimant to the proceeds
within 2 months
Upon receipt of a written proof of death and the right of the claimant to the proceeds, the insurer must pay death claims within___months
within 2 months
