Idaho Statutes, Rules, & Regulations Pertinent To Life Only

Question 1

Type of whole life insurance that matures early (before age 100)

Answer 1

Endowment contract

Question 2

A life insurance policy written with the face amount of no more than $1,000

Answer 2

Industrial life policy

Question 3

To make public, to put into action (ie. Laws or court decrees)

Answer 3

Promulgate

Question 4

A replacing insured must maintain notice regarding replacement, policy summary, contract, and ledger statements for how long?

Answer 4

3 years, or until next scheduled examination by DOI; whichever is later

Question 5

Notice of applicants right to unconditional refund of all premiums paid. River may be exercised within __ days from the date the written communication was received.

Answer 5

20

Question 6

If replacement, Each existing insurer must furnish policy within __ days if receipt of written communication.

Answer 6

20

Question 7

A replacing insurer can:
- institute a new policy in place of a lapsed or terminated policy
- reissue as a reduction in cash value
- convert to reduced paid up or extended term

Answer 7

Yes

Question 8

Annuity contract must have a __ day grace period for any premium payment (except?) insurer may charge __% interest annually for the number of days that pass before premium payment.

Answer 8

30; first premium; 6%

Question 9

Under the dividend provision the Insurer must ________ apportion any surplus accruing under the contract.

Answer 9

Annually

Question 10

Annuity contracts must be reinstated within _________ from default of premium unless the cash _______ value has been paid.

Answer 10

One year; surrender

Question 11

Annuities must have a _____ day free look period.

Answer 11

20

Question 12

All producers who engage in the sake of annuity products must complete a ______, __ credit training course. May be take as part of continuing education?

Answer 12

One-time, 4; yes

Question 13

Grace period must be _________ (not less than __ days) or __ weeks for industrial life policies.

Answer 13

1 month; 30; 4

Question 14

Insured May borrow cash value after __ full years’ premiums have been paid at an annual interest rate of not more than __ %. Loan may be deferred for __ months.

Answer 14

3; 8, 6

Question 15

Max time limit for reinstatement is __ years (__ years for industrial life) after the policy has lapsed.

Answer 15

3; 2

Question 16

Reinstated policies must be restored to original status. Pay all ____ premiums plus interest not to exceed __%, and pay back any ____ + interest

Answer 16

Back; 8; loans

Question 17

Free look period on all life and annuity contracts.

Answer 17

20 days

Question 18

Regardless of creditors claims beneficiary is entitled to _________ due under policy.

Answer 18

All proceeds

Question 19

Am insured holding proceeds of any policy may make funds exempt from creditors claims against a beneficiary other than the __________.

Answer 19

Policyowner

Question 20

Any financial transaction in which the owner of a life insurance policy sells a to a third party for some form of compensation.

Answer 20

Life settlement

Question 21

A life settlement would require an _______ assignment of all rights from Lori final policyowner to new policyowner.

Answer 21

Absolute

Question 22

Refers to any activity relating to the solicitations and sale of a life settlement contract to a third party who has no Insurable interest in the insured.

Answer 22

Business of life settlement

Question 23

Qualified institutional buyer is one that owns and invests at least __________ in securities and is allowed by the ___ to trade in unregistered securities.

Answer 23

100 million, SEC

Question 24

Establishes the terms under which the life settlement provider will pay compensation to the policyowner

Answer 24

Life settlement contract

Question 25

Life settlement broker represent only the ______________ and have a fiduciary duty to the ________ to act according to their best interest. Does not include attorneys, accountants etc.

Answer 25

Policyowner, owner.

Question 26

Type of insurance that is initiated by a 3rd party that has no Insurable interest in the life of the insured for the sole purpose of affecting a life settlement contract.

Answer 26

stranger-oriented life insurance (STOLI)

Question 27

_______ violate the principle of Insurable interest.

Answer 27

STOLI’s

Question 28

Licensed life agent must notify Director with __ days of beginning to act in a life settlement broker capacity and ________________.

Answer 28

10, pay a required fee

Question 29

A calculation based on the average number of months the insured is projected to live due to medical history and mortality factors.

Answer 29

Life expectancy

Question 30

Employee groups do or do not include retired employees.

Answer 30

Does

Question 31

Debtor groups must receive at least ___ new entrants per year.

Answer 31

100

Question 32

Trustee groups are established by __ or more employers in the _____ , by __ or more labor union, or by __ or more labor union and __ or more employer.

Answer 32

2, same industry, one, one, one

Question 33

A public employer group must have at least __ % of eligible employees elect coverage and the policy must cover at least __ persons on the date of issue.

Answer 33

75%, 5

Question 34

Credit union groups must cover at least __ members at the date of issue

Answer 34

25

Question 35

Other groups eligible after receiving ——————- from the director.

Answer 35

Special approval

Question 36

All group policies must grant a __ day grace period.

Answer 36

31

Question 37

All group life policies must include payment of benefits provision stating that any sun that comes due at insureds death will be payable to ____________

Answer 37

Designated beneficiary

Question 38

Under the insurability provision the ________ establishes the conditions under which a person is required to furnish evidence of insurability.

Answer 38

Insurer

Question 39

An insured with group life is entitled to an individual life policy upon termination of employment or membership without __________ of _________. Application and premium within __ days.

Answer 39

Evidence of insurability; 31

Question 40

Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?

Answer 40

Replacement rule

Question 41

During replacement of life insurance, a replacing insurer must obtain a list of what?

Answer 41

All insurance policies being replaced.