IL Insurance Law (Life)

Question 1

Free-look periods can’t be an excuse to…

Answer 1

Not disclose information

Question 2

Ads claiming no medical exam must disclose if…

Answer 2

Medical questions will be asked

Question 3

Ads for life insurance and annuities must clearly identify…

Answer 3

What’s being sold as life insurance and annuities

Question 4

Ads must disclose…

Answer 4

Unlevel premiums

Question 5

If premiums are level, ads must disclose if…

Answer 5

Death benefits will go up or down

Question 6

If dividends are supposed to eliminate premiums…

Answer 6

Conditions must be disclosed

Question 7

Dividends can never be advertised as…

Answer 7

Guaranteed

Question 8

Low introductory pricing must include…

Answer 8

Long-term price

Question 9

Pre-need insurance must disclose that…

Answer 9

It is life insurance for funeral costs and that excess death benefits will go to a secondary beneficiary

Question 10

Ads must disclose name of…

Answer 10

Insurer

Question 11

Ads for senior citizens must disclose any…

Answer 11

Possibility of contact

Question 12

Ads for senior citizens can’t act as if not responding will result in…

Answer 12

Loss of government benefits

Question 13

For public events, must disclose that…

Answer 13

Insurance or annuity presentation will be given

Question 14

Buyers must receive buyer’s guide from NAIC before…

Answer 14

Payment of first premium

Question 15

Buyers must receive policy summary before…

Answer 15

Policy delivery

Question 16

Must disclose that you’re a LI producer/agent before…

Answer 16

Sales presentation

Question 17

For presentations, cannot use what words indicating that you are not a commissioned salesperson unless true?

Answer 17

Advisor, financial planner, consultant, etc

Question 18

Life and annuity transactions must involve what regarding whether the transaction is a replacement?

Answer 18

Signed statement

Question 19

For replacements, must provide buyer’s guide from NAIC no later than…

Answer 19

Time of application

Question 20

For replacements, forms and documents must be sent to the other insurer within…

Answer 20

3 days of application

Question 21

For replacements, forms and documents must be kept for how long?

Answer 21

3 years

Question 22

Policyholders must receive a receipt of what upon request?

Answer 22

Premium

Question 23

What is the grace period for late payments?

Answer 23

30 days

Question 24

Contestability period cannot last more than…

Answer 24

2 years

Question 25

What is the look-period?

Answer 25

At least 10 days

Question 26

Mandatory entire contract clause that makes what the full contract?

Answer 26

Policy, application, and riders

Question 27

Misstatement of age can't result in...

Answer 27

Cancellation, only adjust premium or benefits

Question 28

Policies with loan or nonforfeiture features must need to make them available for no later than how many years after purchase?

Answer 28

3 years

Question 29

Reinstatement clauses must be in effect for how many years after cancellation?

Answer 29

3 years

Question 30

Death benefits need to be paid within how many months of proof of death?

Answer 30

2 months

Question 31

Death benefits must include interest after...

Answer 31

31 days

Question 32

Annuity producers must complete...

Answer 32

One-time, 4 hour annuity course

Question 33

Annuity recommendations must be documented and consider...

Answer 33

Age, annual income, financial situation, needs, and objectives, financial experience, intended use of annuity, financial time horizon, existing assets, liquidity needs and liquid net worth, tax status, risk tolerance, resources to fund the annuity

Question 34

Accelerated benefits can't be advertised as...

Answer 34

LTC insurance

Question 35

With accelerated benefits, the money can be used...

Answer 35

As the policyholder pleases

Question 36

Accelerated benefits cost and renewability must be guaranteed and can't...

Answer 36

Change due to age or disability

Question 37

At time of purchase and when accelerated benefits are paid...

Answer 37

Potential tax and MCD issues must be disclosed

Question 38

Illustrations must clearly identify...

Answer 38

Guarantees and non-guarantees

Question 39

Illustrations must be signed by...

Answer 39

Producer and consumer, agreeing that it's just an illustration

Question 40

Consumers must get a copy of...

Answer 40

Illustrations

Question 41

Illustration records must be kept for how many years after the policy is over?

Answer 41

3 years

Question 42

If illustrations are used, consumer must receive an annual report with...

Answer 42

Death benefit, annual premium, surrender value, current dividends (and how applied), and loan balance

Question 43

People entering into viatical or life settlements must affirm...

Answer 43

They are doing it of their own free will

Question 44

In viatical or life settlements, who must conclude the person is of sound mind?

Answer 44

Physician

Question 45

In viatical settlements, contact can only happen...

Answer 45

Every month, with life expectancy of a year or less, or every 3 months if greater life expectency

Question 46

In viatical settlements, identity of the consumer can not be disclosed to...

Answer 46

Individual investors

Question 47

No viatical/life settlements if the life insurance as been in place for less than...

Answer 47

2 years

Question 48

Exceptions to the 2 year minimum for viatical/life settlements are...

Answer 48

Health emergency, disability, divorce, retirement, bankruptcy, or other major life events

Question 49

Viatical brokers must have a life license for at least a year and...

Answer 49

Complete a 4-hour viatical course and pay a $500 licensing fee

Question 50

No discrimination based on disability unless...

Answer 50

Actuarily justified

Question 51

No discrimination based on...

Answer 51

Blindness

Question 52

No refusal to issue or renew based on...

Answer 52

Military status

Question 53

Strict rules regarding discrimination on what must be actuarily justified?

Answer 53

Travel

Question 54

Guaranty Association Limits: Death Benefits

Answer 54

$300k

Question 55

Guaranty Association Limits: Cash Surrender Values

Answer 55

$100k

Question 56

Guaranty Association Limits: Annuity Values

Answer 56

$250k

Question 57

Guaranty Associations are not obligated to pay for...

Answer 57

Non-guaranteed elements

Question 58

Guaranty Associations are funded by...

Answer 58

Life and health insurers in the state

Question 59

In some cases, the Guaranty Association won't pay but will facilitate...

Answer 59

Transfer to another insurer