Chapter 6 - Illustrations, Time Periods & Replacements Flashcards
When must the buyers guide be presented to the client?
At the the time of the application.
When must the policy summary be presented?
At the time of the application.
What must illustrations contain?
- Insurer name
- Address
- Rating
- Classification
- Policy name
- Death benefits
- Dividend option election
What do members of a group life insurance policy receive?
Each insured receives a certificate of insurance summarizing policy benefits and conditions.
How long does an insured of a group policy have to convert it?
31 days after policy termination. No proof of insurability required.
What is entire contract?
The policy, attached application and any riders or amendments.
How long is Incontestability?
2 years
What happens in a misstatement of age?
The death benefit is adjusted to meet the actual age.
How long is the free look period?
10 days and 30 days for replacement policies.
How long is the grace period for non payment?
31 days.
How long do you have to reinstate policy after the premium default.
3 years.
How long does an insurer have to pay the claims after receiving the death certificate?
30 days
What is it called when you cash in an old policy and use it to buy a new policy?
A replacement. Also borrowing from a policy to buy a new one is a replacement.
How long after receiving replacement notice must insurer provide a policy summary?
5 days.
How long must insurers keep records regarding replacements?
5 years
