9.1

Question 1

The ______ established uniform cost comparison methods to provide a standard from which to follow in comparing whole life insurance.

Known as the NAIC Life Insurance Solicitation Model Regulation, most states have adopted its methods over the years as it has expanded to include more accurate comparisons, as well as more detailed disclosures to consumers. Such disclosures include requiring a prospective buyer to be provided with a ______ and a ‘policy summary’ specific to the product being marketed.

Answer 1

National Association of Insurance Commissioners (NAIC)

general ‘buyer’s guide’

Question 2

A ______ is a generic document that explains the basic terms and definitions related to life insurance, as well as the type of whole life insurance being marketed.

Answer 2

life insurance Buyer’s Guide

Question 3

A life insurance ______ reviews the specific product being purchased in detail, including identifying the agent and insurer from which the policy is being marketed, the policy’s premium rate, policy exclusions, dividends, policy riders, cash values and benefit amounts.

Answer 3

Policy Summary

Question 4

In order to make a more informed decision when purchasing whole life insurance, the policy summary is also required to include ______ which compare similar whole life policies based on the overall cost of each policy to the policyowner.

Answer 4

‘cost index’ charts

Question 5

Comparing whole life policies involves more than simply comparing policy premiums. In determining the cost of a life insurance policy, factors such as ______, dividend estimates and the accumulated cash value over the life of the policy are also considered.

Answer 5

surrender charges