11 - Specific Statutes and Regulations to Life Flashcards
When a policy of life insurance is reinstated in North Carolina, the insurance company may require how long of a contestable period?
-2 years
________ cannot attach the benefits of a life insurance death benefit over a named beneficiary.
-creditors
Insurers that, without the written consent of the beneficiary, fail or refuse to pay death benefits within ____________ after receipt of satisfactory proof of loss because of death will pay interest.
-30 days
An individual currently has a Whole Life policy with Acme Life Insurance Company. A producer for Acme suggests that the insured exchange the existing policy for a different Acme Life policy. With regards to this situation and the Replacement Regulations, the producer must do which of the following?
-The producer does not need to follow the replacement regulation; the replacing insurer will be Acme
For life insurance policies in which the Equivalent Level Death Benefit does NOT exceed _______, the requirement for providing a Policy Summary is satisfied by delivery of a written statement of the prescribed information.
-$5,000
The term ___________ may not be used by a Producer to imply that the insurance Producer is generally engaged in an advisory business in which compensation is unrelated to sales unless such is actually the case.
-Financial Consultant
Life insurers that fail or refuse to pay death benefits within __________after receipt of satisfactory proof of death must pay interest on the death benefit.
-30 days
Which of the following defines the purpose of the spendthrift clause in life insurance?
-The spendthrift clause denies creditors the right to attach death proceeds.
The document that explains the different types of life insurance policies to prospective purchasers is called:
-Buyer’s Guide
When a life insurance policy has been replaced, the replacing insurer must provide at least a _______Free Look (Refund of Premium) with the new policy.
-30 day
The life insurance “Policy Summary” must be delivered to the applicant for the life policy no later than:
-at the time of policy delivery
The Life and Health Insurance Guaranty Association will provide payment in the case of the insolvency of a member company up to ___________.
-$300,000 total lifetime aggregate on any single person
J is a life insurance producer for Acme Insurers. When a dispute occurs over a policy, whose interest does J represent?
-insurer
The Buyer’s Guide and Policy Summary can be delivered with the policy if the policy contains a refund (free look) provision offer of at least ___________.
-10 days
Industrial life insurance policies premiums are due on a _________ basis.
-weekly
