Illinois Statues and Regulations Pertaining to Life Only Flashcards
To which of the following policies would the state regulations on Illustrations NOT apply?
A) An individual variable life policy
B) A whole life policy with a guaranteed death benefit of $20,000
C) A group life policy
D) A term policy
A) An individual variable life policy
(The life insurance illustration regulation applies to all individual and group policies except variable life insurance; individual and group annuity contracts; credit life insurance; or life policies and certificates with guaranteed scheduled death benefit of $10,000 or less, or illustrated death benefit less than $15,000)
How long must an insurer’s advertisement be kept on file?
4 years
An agent uses an insurer’s illustration. He obtains proper approval and does not change the illustration in any way. The illustration involves projected amounts, and the agent stipulates that the amount would not be guaranteed. Which of the following is TRUE?
A) The agent must stipulate that the illustration is not part of the contract.
B) It is illegal to include a non-guaranteed amount in an illustration.
C) The agent needs to change the illustration to include guaranteed amounts only.
D) The illustration is fine the way it is.
A) The agent must stipulate that the illustration is not part of the contract.
Ronald is buying life insurance. He is unclear which one to buy, and his insurer explains the costs of similar plans, in addition to their basic features. Which rule requires the insurer to disclose such information?
Life Solicitation Rule
(This rule requires insurers to deliver at least certain minimum information designed to help buyers select the most appropriate life insurance plan for their needs, understand the basic features of the policy they are considering, and evaluate the relative costs of similar plans)
The life solicitation rule applies to which of the following?
A) Variable Life
B) Annuities
C) Credit Life
D) Individual Life
D) Individual Life
Variable Life, Group Life, and Annuities are EXEMPT under which rule?
A) Life Insurance Taxation
B) Life Solicitation
C) Insurance Disclosure
D) Fiduciary
B) Life Solicitation
Which of the following is NOT an exclusion to the requirement stating that no insurer may recommend the purchase of an annuity if the recommendation results in an insurance transaction unless the recommendation is suitable for the consumer?
A) Deferred compensation plans
B) Government or church plans
C) Prepaid funeral plans
D) Contracts designed for senior citizens
D) Contracts designed for senior citizens
A legally acceptable attempt by an existing insurer to dissuade a current policy owner from the replacement of existing life insurance is called
A) Conservation
B) Solicitation
C) Rebating
D) Retention
A) Conservation
The replacement regulation does NOT apply to situations in which the total existing coverage to be replaced represents less than how much of the face amount?
A) $2,000
B) $5,000
C) $8,000
D) $10,000
B) $5,000
(The replacement regulation does not apply to policies in which the total cash surrender value is less than $500 and the face amount is less than $5,000)
At what annual rate does interest on life insurance proceeds accrue from the date of death of the insured?
A) 5%
B) 10%
C) 12%
D) 15%
B) 10%
A Viatical settlement provider must file a surety bond or other evidence of financial responsibility in the amount of
A) $100,000
B) $125,000
C) $175,000
D) $200,000
B) $125,000
The Illinois Life and Health Insurance Guaranty Association is obligated to pay covered claims only if the amount is under
A) $100,000
B) $300,000
C) $500,000
D) $1,000,000
B) $300,000
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
A) A legal representation of the association
B) An unfair trade practice
C) A misrepresentation
D) A required disclosure
B) An unfair trade practice
(Illegal to advertise)
How soon must the insurer pay a death benefit claim after receiving the proof of death?
A) 6 months
B) 2 months
C) 30 days
D) 1 year
B) 2 months
The policy loans provision states that the insurer must advance to the policy owner a sum up to the policy’s cash value after the full amount of premiums have been paid for how long?
A) 6 months
B) 1 year
C) 2 years
D) 3 years
D) 3 years
