Ch 9 Flashcards
Interest adjusted net cost method=
Time value of money
Comparative interest rate method=
Rate of return
Free look period =
15 days
Grace period
One month
Policy loans
After three full years in cash value policies
Legal action
Within two years after loss
Payment of claims
Within two months of claim
Free look period
Grace periodPolicy loans
Legal action
Payment of claims
Examples of…
Required provisions
Nonforfeiture law
Group life
Required provisions
Guaranteed benefits that cannot be forfeited by policyowner
Nonforfeiture law
Credit life
Group life
Nonforfeiture law
Has three minimum Nonforfeiture options
Reduced paid up, extended term, shortened benefit period
Nonforfeiture law
Termination and conversion rules
Policy provisions: incontestability period of two years; grace period of 31 days; misstatement of age
Group life
All advertisements are the responsibility of the
Insurer
Soliciting agent
Advertising agency
Insurer
Which may be included on ins advertisement
Words and symbols similar to those of govt agencies
Testimonials from compensated individuals
Trade names in place of insurer’s name
Testimonials from compensated individuals
Must be included in all life ins advertisements
Names of any parent companies
Identity of actual insurer
Contact info for each local office of insurer
Identity of actual insurer
If compensated for a testimonial in advertisement which must be included
Insurer is not responsible for the contents of the testimonial
Author is the employee of the insurer
Paid endorsement
Paid endorsement
When possible what should insurers strive to eliminate from illustrations
Footnotes and caveats
Words they don’t know
References to other products
Footnotes and caveats
Which cannot be included along with illustrations used to sell life ins
Name of insurer
Rating info
Vanishing premium info
Vanishing premium info
Not required on an illustration used in sale of a life ins policy
Name of primary and secondary beneficiaries
Generic name of policy
Name of insurer
The name of the primary and secondary beneficiaries
Which is not required on an illustration used in sale of life ins policy
Name of primary and secondary beneficiaries
Generic name of policy
Name of insurer
Name of the primary and secondary beneficiaries
Upon submission of death claim under life ins policy when must insurer pay policy benefit
Within two months
Within 30 days
On next anniversary of policy
Within two months
Investment return on ins premium had it been invested elsewhere aka
Time value of money
