Life State law 2

Question 1

advertising

Answer 1

any type of communication intended to create interest in life insurance, an insurer, or to induce someone to buy, change or retain an insurance policy. must be truthful, clear, and complete

Question 2

insurers must keep a complete file of all printed, published, or prepared advertisements on file for either ___________ or until the insurer’s next regular examination by the Department, whichever comes later

Answer 2

4 years

Question 3

illustration

Answer 3

presentation or depiction that includes nonguaranteed elements of a policy of individual or group life insurance over a period of years

Question 4

purpose of regulations for individual and group life insurance policy illustrations:

Answer 4

to provide standards that will protect and educate consumers

Question 5

illustrations regulation does not apply to:

Answer 5

-variable life insurance
-individual and group annuity contracts
-credit life insurance
-life insurance policies and certificates with guaranteed scheduled death benefit of $10,000 or less, or illustrated death benefit of less than $15,000

Question 6

life insurance illustration must contain the following:

Answer 6

-name of the insurer
-name and business address of agent or authorized representative of the insurer
-name, age and gender of the proposed insured
-underwriting or rating classification upon which the illustration is based
-policy name and the company product name
-initial death benefit
-dividend option election or app of non-guaranteed elements

Question 7

the life insurance solicitation rule requires insurers to deliver certain info designed to help buyers:

Answer 7

-understand the basic features of the policy they are considering
-evaluate the relative costs of similar plans
-select the most appropriate life insurance plans for their needs

Question 8

the life solicitation rule applies to all life insurance sales, including fraternal benefit life insurance, but not to:

Answer 8

annuities, credit life, group life, franchise life, variable life, and life insurance in pension and employee benefit plans subject to ERISA

Question 9

written disclosure statement

Answer 9

provides basic info about the cost and coverage of the insurance being solicited

Question 10

if a policy’s equivalent level death benefit does not exceed __________ the requirement providing a policy summary will be satisfied by delivery of a written statement containing all info required

Answer 10

$5000