IL Insurance Law (Life) Flashcards
Free-look periods can’t be an excuse to…
Not disclose information
Ads claiming no medical exam must disclose if…
Medical questions will be asked
Ads for life insurance and annuities must clearly identify…
What’s being sold as life insurance and annuities
Ads must disclose…
Unlevel premiums
If premiums are level, ads must disclose if…
Death benefits will go up or down
If dividends are supposed to eliminate premiums…
Conditions must be disclosed
Dividends can never be advertised as…
Guaranteed
Low introductory pricing must include…
Long-term price
Pre-need insurance must disclose that…
It is life insurance for funeral costs and that excess death benefits will go to a secondary beneficiary
Ads must disclose name of…
Insurer
Ads for senior citizens must disclose any…
Possibility of contact
Ads for senior citizens can’t act as if not responding will result in…
Loss of government benefits
For public events, must disclose that…
Insurance or annuity presentation will be given
Buyers must receive buyer’s guide from NAIC before…
Payment of first premium
Buyers must receive policy summary before…
Policy delivery
Must disclose that you’re a LI producer/agent before…
Sales presentation
For presentations, cannot use what words indicating that you are not a commissioned salesperson unless true?
Advisor, financial planner, consultant, etc
Life and annuity transactions must involve what regarding whether the transaction is a replacement?
Signed statement
For replacements, must provide buyer’s guide from NAIC no later than…
Time of application
For replacements, forms and documents must be sent to the other insurer within…
3 days of application
For replacements, forms and documents must be kept for how long?
3 years
Policyholders must receive a receipt of what upon request?
Premium
What is the grace period for late payments?
30 days
Contestability period cannot last more than…
2 years
What is the look-period?
At least 10 days
Mandatory entire contract clause that makes what the full contract?
Policy, application, and riders
Misstatement of age can’t result in…
Cancellation, only adjust premium or benefits
Policies with loan or nonforfeiture features must need to make them available for no later than how many years after purchase?
3 years
Reinstatement clauses must be in effect for how many years after cancellation?
3 years
Death benefits need to be paid within how many months of proof of death?
2 months
Death benefits must include interest after…
31 days
Annuity producers must complete…
One-time, 4 hour annuity course
Annuity recommendations must be documented and consider…
Age, annual income, financial situation, needs, and objectives, financial experience, intended use of annuity, financial time horizon, existing assets, liquidity needs and liquid net worth, tax status, risk tolerance, resources to fund the annuity
Accelerated benefits can’t be advertised as…
LTC insurance
With accelerated benefits, the money can be used…
As the policyholder pleases
Accelerated benefits cost and renewability must be guaranteed and can’t…
Change due to age or disability
At time of purchase and when accelerated benefits are paid…
Potential tax and MCD issues must be disclosed
Illustrations must clearly identify…
Guarantees and non-guarantees
Illustrations must be signed by…
Producer and consumer, agreeing that it’s just an illustration
Consumers must get a copy of…
Illustrations
Illustration records must be kept for how many years after the policy is over?
3 years
If illustrations are used, consumer must receive an annual report with…
Death benefit, annual premium, surrender value, current dividends (and how applied), and loan balance
People entering into viatical or life settlements must affirm…
They are doing it of their own free will
In viatical or life settlements, who must conclude the person is of sound mind?
Physician
In viatical settlements, contact can only happen…
Every month, with life expectancy of a year or less, or every 3 months if greater life expectency
In viatical settlements, identity of the consumer can not be disclosed to…
Individual investors
No viatical/life settlements if the life insurance as been in place for less than…
2 years
Exceptions to the 2 year minimum for viatical/life settlements are…
Health emergency, disability, divorce, retirement, bankruptcy, or other major life events
Viatical brokers must have a life license for at least a year and…
Complete a 4-hour viatical course and pay a $500 licensing fee
No discrimination based on disability unless…
Actuarily justified
No discrimination based on…
Blindness
No refusal to issue or renew based on…
Military status
Strict rules regarding discrimination on what must be actuarily justified?
Travel
Guaranty Association Limits: Death Benefits
$300k
Guaranty Association Limits: Cash Surrender Values
$100k
Guaranty Association Limits: Annuity Values
$250k
Guaranty Associations are not obligated to pay for…
Non-guaranteed elements
Guaranty Associations are funded by…
Life and health insurers in the state
In some cases, the Guaranty Association won’t pay but will facilitate…
Transfer to another insurer
