What must producers give to applicants who want life insurance?
Buyers Guide and either a Policy Summary or Life
Insurance Illustration no later than when the policy is delivered
Producers must give applicants a Notice Regarding Replacement when
at time of application.
Insurable interest exists on a birth relative or spouse based on what?
kinship".
A does a a son-in-law have an insurable interest in his father-in-law?
NO
In order to get a HIV exam what must the insurer do?
get a written consent of the applicant.
T/F HIV test results can be released as soon as possible.
FALSE. HIV testing requires advance written consent of the applicant.
Group life insurance must include how many employees?
Group life coverage must include all eligible employees.
Group life is convertible to an individual policy without a physical exam after how many days of termination from a job?
for 31 days after termination of
employment.
What can group life to converted to?
whole life, never term.
How long is the free look in Ut
10 days, starting at the time of policy delivery(LAST PART IS CRITICAL TO REMEMBER)
what is the purpose of the Life and Health Insurance Guaranty Association?
to protect customers in the event
of insurer insolvency (bankruptcy).
Is it okay to tell people about the protection they have from Guaranty Association in order to get a sale?
NEVER OKAY! It is unlawful to use the presence of the Guaranty Association as an inducement to a sale.
When is replacement unlawful?
when it is detrimental to the client.
The replacement rules apply to what type of policy?
individual life insurance policies,
The replacement rules DOES NOT apply to what type of policy?
not Group or Credit Life
Future dividends may never be guaranteed.
true.Future dividends may never be guaranteed. Past dividend history may be stated, if accurate.
Life insurance may not be referred to as?
an investment or as a security.
T/F Producers may refer to the time value of money when comparing Life insurance policies.
true
Credit Life is usually written as what type of policy?
as decreasing term insurance, not to exceed the amount of the loan.
On Group Life, the employer is considered to be?
the Master policyholder.
what is a Certificate of Insurance and what polices give it?
On Group Life policy , the employee receives a Certificate of Insurance, summarizing their coverage.
Producers selling Variable Life or Variable Annuities must also have what typed of licensing?
FINRA securities license.
Individual Life insurance must have a grace period of what?
least 31 days.
Insurers may not deny a Life insurance claim for suicide that occurs after the policy has been in force
for 2 yrs
A Life insurance policy may not be backdated for how long?
more than 1 year.
Lapsed Life insurance policies may be reinstated up to how many years?
for up to 3 years from the date of premium default
In order to reinstate, what must the applicant do?
with proof of insurability, and payment of all overdue premiums, plus interest.
The Life and Health Guaranty Association will pay will pay the death claims of an insolvent insurer up how much?
up to $500,000 with respect to any one life.
The Life and Health Guaranty Association does not cover what type of products?
variable products.
When replacing insurance, what should you be concerned about?
you should be concerned about Errors and Omissions (E&O). for ex. Malpractice for doctors
T/F Life producers may not make binders of coverage
true
FINRA stands for what? and what does it do?
(Financial Industry Regulatory Authority) enforces securities regulations for member firms.
How are the policy loans secured?
by the policy itself.
Under the Common Disaster clause it assumes who dies last?
it is assumed that the insured died last.
does a friend have an insurable interest in your life?
NO
T/F Replacement of Life insurance is not illegal, but "twisting" is.
TRUE
On "contributory" Group life, what % of employees must participate?
the 75% of those eligible must participate.
On "non-contributory" Group life,what % of employees must participate?
100% of those eligible must participate.