Chapter 9 Pt 3

Question 1

Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of term

14
28
30
31

Answer 1

31 days

Question 2

Incontestability period in group life in texas =

Answer 2

2 years

Question 3

Upon submission of death claim under life ins policy when must insurer pay benefit

2 months
3 months
30 days

Answer 3

2 months (within)

Question 4

Credit life ins cannot pay out more than the

Answer 4

Balance of the debt

Question 5

Ins policies most commonly used in credit life ins

Decreasing term

Increasing term

Whole life

Equity indexed life

Answer 5

Decreasing term

Question 6

Special type of coverage written to insure life of debtor and pay off balance of loan in event of death of debtor

Decreasing term

Increasing term

Whole life

Equity indexed life

Answer 6

Decreasing term

Question 7

If agent knows applicant will cash in old policy and use funds to purchase new ins

Conversion rule

Disclosure rule

Replacement rule

Reinstatement rule

Answer 7

Replacement rule

Question 8

Must be provided to policyowner or applicant during policy replacement

Policy illustrations

Disclosure authorization form

Notice regarding replacement

Answer 8

Notice regarding replacement

Question 9

How soon from term of debt under credit life ins policy must creditor provide notice to insurer

30 days
60 days
90 days

Answer 9

60 days

Question 10

Owner of credit life ins policy

Creditor
Debtor
Insurer
Beneficiary

Answer 10

Creditor

Question 11

During replacement of life ins a replacign insurer must do which

Obtain a list of all life ins policies that will be replaced

Guarantee a replacement for each existing policy

Designate a new producer for a replaced policy

Answer 11

Obtain a list of all life ins policies that will be replaced

Question 12

Re credit life ins all correct EXCEPT

Benefits are paid to the borrower’s beneficiary

Premiums usually paid by borrower

Benefits are paid to the creditor

Answer 12

Benefits are paid to the borrower’s beneficiary

Question 13

Regulations regarding replacement apply to which of the following

Credit life

Group life

Renewable term

Answer 13

Renewable term

Question 14

Correct regarding credit life ins

Insured the life of a debor

Insured the life of a creditor

Purchased on an installment basis

Answer 14

Insured the life of a debtor

Question 15

True re ins amount in credit life policy

Creditor can only insure the debtor for amount owed

Creditor may insure debtor for unlimited amount of coverage

Amount of coverage can be greater than amount owed

Answer 15

Creditor can only insure debtor for amount owed

Question 16

Which does replacement regulation apply

Whole life policy reissued with reduction in cash value

Group life ins

Coverage under a binding receipt issued by same company

Answer 16

Whole life policy reissued with reduction in cash value

Question 17

Credit life ins=

Answer 17

Creditor is beneficiary of benefit

Question 18

During replacement of life ins=

Answer 18

Obtain list of all ins policies being replaced

Question 19

Which is not allowed in credit life ins

Creditor requiring that debtor has life ins

Creditor becoming a policy beneficiary

Creditor requiring that a debtor buys ins from a certain ins

Answer 19

Creditor requiring that a debtor buy ins from a certain insurer

Question 20

Re credit life ins who is responsible for reporting termination of debt to insurer

Creditor

Beneficiary

Debtor

Answer 20

Creditor

Question 21

Which is correct re credit life ins

Insures the life of a debtor
Purchased on installment basis
Has max term of 20 years

Answer 21

Insures life of debtor

Question 22

Which is true re credit life ins

Creditor is insured

Debtor is policy beneficiary

Creditor is policyowner

Debtor is annuitant

Answer 22

Creditor is policyowner

Question 23

Amount of credit life ins may NOT exceed

Borrowers monthly income

Borrowers annual income

Amount to be repaid under contract

Answer 23

Amount to be repaid under contract

Question 24

Credit life policy=

Answer 24

Can only insure debtor for amount owed

Question 25

How soon from term of debt under a credit life ins policy must creditor provide notice to the insurer

7 days
10
30
60

Answer 25

60