Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

IL Life and Health Insurance > IL Insurance Law (Life) > Flashcards

IL Insurance Law (Life) Flashcards

1
Q

Free-look periods can’t be an excuse to…

A

Not disclose information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Ads claiming no medical exam must disclose if…

A

Medical questions will be asked

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Ads for life insurance and annuities must clearly identify…

A

What’s being sold as life insurance and annuities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Ads must disclose…

A

Unlevel premiums

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If premiums are level, ads must disclose if…

A

Death benefits will go up or down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

If dividends are supposed to eliminate premiums…

A

Conditions must be disclosed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Dividends can never be advertised as…

A

Guaranteed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Low introductory pricing must include…

A

Long-term price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Pre-need insurance must disclose that…

A

It is life insurance for funeral costs and that excess death benefits will go to a secondary beneficiary

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Ads must disclose name of…

A

Insurer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Ads for senior citizens must disclose any…

A

Possibility of contact

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Ads for senior citizens can’t act as if not responding will result in…

A

Loss of government benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

For public events, must disclose that…

A

Insurance or annuity presentation will be given

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Buyers must receive buyer’s guide from NAIC before…

A

Payment of first premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Buyers must receive policy summary before…

A

Policy delivery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Must disclose that you’re a LI producer/agent before…

A

Sales presentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

For presentations, cannot use what words indicating that you are not a commissioned salesperson unless true?

A

Advisor, financial planner, consultant, etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Life and annuity transactions must involve what regarding whether the transaction is a replacement?

A

Signed statement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

For replacements, must provide buyer’s guide from NAIC no later than…

A

Time of application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

For replacements, forms and documents must be sent to the other insurer within…

A

3 days of application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

For replacements, forms and documents must be kept for how long?

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Policyholders must receive a receipt of what upon request?

A

Premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is the grace period for late payments?

A

30 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Contestability period cannot last more than…

A

2 years

25
Q

What is the look-period?

A

At least 10 days

26
Q

Mandatory entire contract clause that makes what the full contract?

A

Policy, application, and riders

27
Q

Misstatement of age can’t result in…

A

Cancellation, only adjust premium or benefits

28
Q

Policies with loan or nonforfeiture features must need to make them available for no later than how many years after purchase?

A

3 years

29
Q

Reinstatement clauses must be in effect for how many years after cancellation?

A

3 years

30
Q

Death benefits need to be paid within how many months of proof of death?

A

2 months

31
Q

Death benefits must include interest after…

A

31 days

32
Q

Annuity producers must complete…

A

One-time, 4 hour annuity course

33
Q

Annuity recommendations must be documented and consider…

A

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

34
Q

Accelerated benefits can’t be advertised as…

A

LTC insurance

35
Q

With accelerated benefits, the money can be used…

A

As the policyholder pleases

36
Q

Accelerated benefits cost and renewability must be guaranteed and can’t…

A

Change due to age or disability

37
Q

At time of purchase and when accelerated benefits are paid…

A

Potential tax and MCD issues must be disclosed

38
Q

Illustrations must clearly identify…

A

Guarantees and non-guarantees

39
Q

Illustrations must be signed by…

A

Producer and consumer, agreeing that it’s just an illustration

40
Q

Consumers must get a copy of…

A

Illustrations

41
Q

Illustration records must be kept for how many years after the policy is over?

A

3 years

42
Q

If illustrations are used, consumer must receive an annual report with…

A

Death benefit, annual premium, surrender value, current dividends (and how applied), and loan balance

43
Q

People entering into viatical or life settlements must affirm…

A

They are doing it of their own free will

44
Q

In viatical or life settlements, who must conclude the person is of sound mind?

A

Physician

45
Q

In viatical settlements, contact can only happen…

A

Every month, with life expectancy of a year or less, or every 3 months if greater life expectency

46
Q

In viatical settlements, identity of the consumer can not be disclosed to…

A

Individual investors

47
Q

No viatical/life settlements if the life insurance as been in place for less than…

A

2 years

48
Q

Exceptions to the 2 year minimum for viatical/life settlements are…

A

Health emergency, disability, divorce, retirement, bankruptcy, or other major life events

49
Q

Viatical brokers must have a life license for at least a year and…

A

Complete a 4-hour viatical course and pay a $500 licensing fee

50
Q

No discrimination based on disability unless…

A

Actuarily justified

51
Q

No discrimination based on…

A

Blindness

52
Q

No refusal to issue or renew based on…

A

Military status

53
Q

Strict rules regarding discrimination on what must be actuarily justified?

A

Travel

54
Q

Guaranty Association Limits: Death Benefits

A

$300k

55
Q

Guaranty Association Limits: Cash Surrender Values

A

$100k

56
Q

Guaranty Association Limits: Annuity Values

A

$250k

57
Q

Guaranty Associations are not obligated to pay for…

A

Non-guaranteed elements

58
Q

Guaranty Associations are funded by…

A

Life and health insurers in the state

59
Q

In some cases, the Guaranty Association won’t pay but will facilitate…

A

Transfer to another insurer

IL Life and Health Insurance (29 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions