Photographic Chapter 3

Question 1

In life settlement contract who settlement broker represent

Life settlement intermediary
Owner
Insurer
Beneficiary

Answer 1

Owner

Question 2

Employee joining group ins plan. How can avoid proof of insurability

Join during open enrollment period
Provide recorded to insurer
Sign statement of continued good health
Nothing as not required in group policies

Answer 2

Join during open enrollment

Question 3

Employee wants to enter group outside of open enrollment period/to reduce adverse selection insurer may

Require evidence of insurability
Require higher premium
Extend open enrollment period
Impose medical requirements on existing members

Answer 3

Require evidence of insurability

Question 4

Group life ins can be converted to an individual whole life not

Answer 4

Term policy

Question 5

Most commonly used for group plans

Answer 5

Annually renewable term

Question 6

Characteristics of group life ins plan except

Minimum number of Ppts is required in order to underwrite
Cost of plan is determined by average age of group
Requirement to prove ins on the part of Ppts
Ppts rec a certificate of ins as their proof of ins

Answer 6

Requirement to prove insurability on part of Ppts

Question 7

Best defines “owner” of settlement contracts

Answer 7

Policyowner of life ins policy

Question 8

Not true of group ins

Ppts each rec a policy
Group sponsor is policyholder
Ppts in group are issued certificates of ins
Small groups are eligible for group ins

Answer 8

Ppts each rec policy

Question 9

Written as annually renewable term ins

Answer 9

Group ins

Question 10

Master contract is for employer and certificates of ins are for individual insureds

Answer 10

Group insurance