Idaho Statutes, Rules, & Regulations Pertinent To Life Only Flashcards
Type of whole life insurance that matures early (before age 100)
Endowment contract
A life insurance policy written with the face amount of no more than $1,000
Industrial life policy
To make public, to put into action (ie. Laws or court decrees)
Promulgate
A replacing insured must maintain notice regarding replacement, policy summary, contract, and ledger statements for how long?
3 years, or until next scheduled examination by DOI; whichever is later
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.
20
If replacement, Each existing insurer must furnish policy within __ days if receipt of written communication.
20
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
Yes
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.
30; first premium; 6%
Under the dividend provision the Insurer must ________ apportion any surplus accruing under the contract.
Annually
Annuity contracts must be reinstated within _________ from default of premium unless the cash _______ value has been paid.
One year; surrender
Annuities must have a _____ day free look period.
20
All producers who engage in the sake of annuity products must complete a ______, __ credit training course. May be take as part of continuing education?
One-time, 4; yes
Grace period must be _________ (not less than __ days) or __ weeks for industrial life policies.
1 month; 30; 4
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.
3; 8, 6
Max time limit for reinstatement is __ years (__ years for industrial life) after the policy has lapsed.
3; 2
Reinstated policies must be restored to original status. Pay all ____ premiums plus interest not to exceed __%, and pay back any ____ + interest
Back; 8; loans
Free look period on all life and annuity contracts.
20 days
Regardless of creditors claims beneficiary is entitled to _________ due under policy.
All proceeds
Am insured holding proceeds of any policy may make funds exempt from creditors claims against a beneficiary other than the __________.
Policyowner
Any financial transaction in which the owner of a life insurance policy sells a to a third party for some form of compensation.
Life settlement
A life settlement would require an _______ assignment of all rights from Lori final policyowner to new policyowner.
Absolute
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.
Business of life settlement
Qualified institutional buyer is one that owns and invests at least __________ in securities and is allowed by the ___ to trade in unregistered securities.
100 million, SEC
Establishes the terms under which the life settlement provider will pay compensation to the policyowner
Life settlement contract
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.
Policyowner, owner.
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.
stranger-oriented life insurance (STOLI)
_______ violate the principle of Insurable interest.
STOLI’s
Licensed life agent must notify Director with __ days of beginning to act in a life settlement broker capacity and ________________.
10, pay a required fee
A calculation based on the average number of months the insured is projected to live due to medical history and mortality factors.
Life expectancy
Employee groups do or do not include retired employees.
Does
Debtor groups must receive at least ___ new entrants per year.
100
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.
2, same industry, one, one, one
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.
75%, 5
Credit union groups must cover at least __ members at the date of issue
25
Other groups eligible after receiving ——————- from the director.
Special approval
All group policies must grant a __ day grace period.
31
All group life policies must include payment of benefits provision stating that any sun that comes due at insureds death will be payable to ____________
Designated beneficiary
Under the insurability provision the ________ establishes the conditions under which a person is required to furnish evidence of insurability.
Insurer
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.
Evidence of insurability; 31
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?
Replacement rule
During replacement of life insurance, a replacing insurer must obtain a list of what?
All insurance policies being replaced.
