Ch6 Life Flashcards
(22 cards)
Proceeds from life insurance policies are protected from the beneficiary’s debts under all of the following circumstances except
Some of the premiums were paid in an attempt to defraud creditors
The amount of debt exceeds the policy’s face value
There are no circumstances under which proceeds are protected from the beneficiary’s debts
The amount of debt exceeds 50% of the policy’s face value
Some of the premiums were paid in an attempt to defraud creditors
The buyer’s guide and policy summary can be delivered with the policy or earlier if the policy contains an unconditional refund provision of at least how many days?
The buyer’s guide and policy summary can be delivered with policy or earlier if the policy contains an unconditional refund provision of TEN (10) days
During replacement of life insurance, a replacing insurer must do what?
The replacing insurer must obtain a list of all life insurance policies
By how many days does the discontiuance of a group insurance policy reduce the time limit for providing notice of claim or proof of loss?
ZERO (0) days- Discontinuance of the group policy or contract does not reduce the required time limit for providing notice of claim or proof of loss
An insurance company and insured are settling a lawsuit involving a life insurance policy. The insurer believes that the application would help to estabish material facts in the case. Can it be used?
Life insurance applications cannot be used as evidence in any action related to the policy unless a copy of the application was attached to or endorsed upon when issued.
A small employer owns a group health policy. He doesn’t pay the premium by it’s due date or by the end of the grace period. How long will the inusrer pay all the losses?
The insurer will pay all losses through the end of the grace period.
Can credit be paid beyond the balance of the debt?
No credit cannot be paid beyond the balance of the creditor’s debt
A life insurance policy has lapsed, and the policy owner would like to reinstate it. In order to initiate the reinstatement process, he must submit an application. Who must request it, and who must deliver it, in how many days?
It is te policyowner’s responsibility to request the reinstatement application; and the insurer must then deliver it within THIRTY (30) days
In Credit Life insurance, who is the creditor?
The Creditor is the policy owner
When a replacement is being recommended by an agent, a replacing insurer has a duty to notify any existing insurer within how many business days?
When a replacement is being recommended by an agent, a replaceing insurer must notify any existing insurer within FIVE (5) business days.
If an insurer requires an application in order to renew a life insurance policy, it is the insurers responsibilty to send one to the insured within how many days? Does the insured have to request it?
Within thirty days of the insured’s request
To what types of life insurance policies di Solicitation rules apply?
Solicitation rules apply only to whole life
What must the initial amount of credit life insurance not exceed?
It may not exceed the total amount repayable under the contract of indebtedness
What is the minimum age that a person can purchase life insurance or an annuity contract in New Jersey?
FIFTEEN (15) years old
Who is the beneficiary in credit life insurance?
The creditor is the owner and the beneficiary of the policy
Is a Creditor allowed to requre that a debtor have life insurance from a specific insurer?
In credit life insurance, a creditor may require that a debtor have life insurance, but can not require the debtor to purchase insurance from a specific insurer.
A life insurance policy insures against several different perils. If the policy owner wants to cancel the coverage for one specific peril, can that be done?
Only if the policy specifices that a seperate premium for for that peril coverage is seperately cancelable
If someone informally accepts a proposed agreement with an insurer, what will the insurer do?
Hold their money in it’s general fund until it can come to a formal agreement with that person
What type of insurance is used in Credit?
What is the minimum term of coverage placed on a ten-year loan?
Seven years
