Chapter 9 Pt 3 Flashcards
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of term
14
28
30
31
31 days
Incontestability period in group life in texas =
2 years
Upon submission of death claim under life ins policy when must insurer pay benefit
2 months
3 months
30 days
2 months (within)
Credit life ins cannot pay out more than the
Balance of the debt
Ins policies most commonly used in credit life ins
Decreasing term
Increasing term
Whole life
Equity indexed life
Decreasing term
Special type of coverage written to insure life of debtor and pay off balance of loan in event of death of debtor
Decreasing term
Increasing term
Whole life
Equity indexed life
Decreasing term
If agent knows applicant will cash in old policy and use funds to purchase new ins
Conversion rule
Disclosure rule
Replacement rule
Reinstatement rule
Replacement rule
Must be provided to policyowner or applicant during policy replacement
Policy illustrations
Disclosure authorization form
Notice regarding replacement
Notice regarding replacement
How soon from term of debt under credit life ins policy must creditor provide notice to insurer
30 days
60 days
90 days
60 days
Owner of credit life ins policy
Creditor
Debtor
Insurer
Beneficiary
Creditor
During replacement of life ins a replacign insurer must do which
Obtain a list of all life ins policies that will be replaced
Guarantee a replacement for each existing policy
Designate a new producer for a replaced policy
Obtain a list of all life ins policies that will be replaced
Re credit life ins all correct EXCEPT
Benefits are paid to the borrower’s beneficiary
Premiums usually paid by borrower
Benefits are paid to the creditor
Benefits are paid to the borrower’s beneficiary
Regulations regarding replacement apply to which of the following
Credit life
Group life
Renewable term
Renewable term
Correct regarding credit life ins
Insured the life of a debor
Insured the life of a creditor
Purchased on an installment basis
Insured the life of a debtor
True re ins amount in credit life policy
Creditor can only insure the debtor for amount owed
Creditor may insure debtor for unlimited amount of coverage
Amount of coverage can be greater than amount owed
Creditor can only insure debtor for amount owed
Which does replacement regulation apply
Whole life policy reissued with reduction in cash value
Group life ins
Coverage under a binding receipt issued by same company
Whole life policy reissued with reduction in cash value
Credit life ins=
Creditor is beneficiary of benefit
During replacement of life ins=
Obtain list of all ins policies being replaced
Which is not allowed in credit life ins
Creditor requiring that debtor has life ins
Creditor becoming a policy beneficiary
Creditor requiring that a debtor buys ins from a certain ins
Creditor requiring that a debtor buy ins from a certain insurer
Re credit life ins who is responsible for reporting termination of debt to insurer
Creditor
Beneficiary
Debtor
Creditor
Which is correct re credit life ins
Insures the life of a debtor
Purchased on installment basis
Has max term of 20 years
Insures life of debtor
Which is true re credit life ins
Creditor is insured
Debtor is policy beneficiary
Creditor is policyowner
Debtor is annuitant
Creditor is policyowner
Amount of credit life ins may NOT exceed
Borrowers monthly income
Borrowers annual income
Amount to be repaid under contract
Amount to be repaid under contract
Credit life policy=
Can only insure debtor for amount owed
