Indiana Laws Chapter 2

Question 1

how are life premiums paid?

Answer 1

In advance

Question 2

what is the grace period for life insurance?

Answer 2

30 days

Question 3

what is the incontestable period?

Answer 3

2 years

Question 4

statements on a life application are?

Answer 4

representations-not warranties

Question 5

what are the rules to reinstatement?

Answer 5

within 3 years, all back premium & interest paid, insurability may be required

Question 6

settlement upon proof of death must be made within what time frame

Answer 6

2 months after receipt of proof of death

Question 7

time limit on law suits

Answer 7

3 years

Question 8

back dating time frame

Answer 8

no more than 6 months before original application

Question 9

settlement amount should not be less than_______

Answer 9

the amount owed minus any loans or past due premium

Question 10

HIV and AIDS-no questions about?

Answer 10

sexual orientation

Question 11

testing rules

Answer 11

at insurer’s expense; with written consent; state approved test protocol; confindential

Question 12

interest limit on loans

Answer 12

may not exceed 8%

Question 13

if insured does not receive payment of benefit within 30 days, they are intitled to what?

Answer 13

interest

Question 14

policyholder may return a policy within____ days for a full refund

Answer 14

10 (Free look)

Question 15

what are qualifying events for accelerated benefits

Answer 15

medical condition reducing life span; medical condition requiring extraordinary care; condition requiring confinement; condition requiring extraordinary medical treatment

Question 16

settlement that means an agreement for the purchase, sale, assignment, transfer, devise, or bequest of a portion of the death benefit or ownership of a life policy or contract for consideration that is less than the expected death benefit

Answer 16

Viatical Settlement

Question 17

viatical settlement contract must provide for unconditional rescission of the contract by the viator if

Answer 17

15 days from receipt of the contract; or 30 days after execution of the contract

Question 18

provides basic information about life insurance with language provided by NAIC and approved by the State Commissioner

Answer 18

Buyer’s Guide

Question 19

written statement describing the elements of the policy prepared by the insurer

Answer 19

Policy Summary

Question 20

the insurer will provide to all prospective purchasers what 2 items

Answer 20

Buyer’s Guide and Policy Summary

Question 21

insurer shall maintain at its home office a complete file containing one copy of each authorized form for how long

Answer 21

3 years

Question 22

any transaction in which new life insurance is to be purchased and it is known or should be known that by reason of such transaction, existing life insurance has ben or is to be surrendered, converted, amended, reissued or pledged as collateral or subject to borrowing

Answer 22

Replacement

Question 23

when replacement is involved the insurer must provide unconditional refund of premiums for_________days

Answer 23

20 (free look) on replacement

Question 24

An association must have a minimum of ____persons

Answer 24

100

Question 25

a person that is eligible for conversion has _____days to exercise the conversion rights

Answer 25

15 days; additional 15 days if not given proper notice; no more than 60 days total