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4 Cards in this Set
- Front
- Back
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which of the following is CORRECT about the replacement rule?
a. the replacement rule applies only to health insurance policies b. the agent has 90 days from the effective date to deliver a buyer's guide c. instructions regarding the rule are available from appointed life insurers d. up to 30 days is allowed for a full refund of premium |
c. instructions regarding the rule are available from appointed life insurers |
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which of the following is NOT considered to be an element of replacement?
a. the agent knows a new policy will take the place of existing policy b. an existing policy is subjected to a loan of 10% of its value c. an existing policy is allowed to lapse d. an existing policy is reissued with a reduced cash value.
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b. an existing policy is subjected to a loan of 10% of its value |
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in which of the following ways is a beneficiary protected from the creditors of the deceased insured?
a. the proceeds of an insurance policy can always be claimed by the deceased insured's creditors b. when the policy is made payable to the estate, the proceeds are protected from the creditors c. if the policy is made payable to a named beneficiary , then the creditors can make no claim on the proceeds d. the cash surrender value of a life insurance policy can be attached by an ordinary creditor |
c. if the policy is made payable to a named beneficiary , then the creditors can make no claim on the proceeds |
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all of the following statements are correct about policy loan interest EXCEPT
a. an insurance company can charge a fixed rate of interest up to a maximum of 10% with some restrictions b. an adjustable interest rate can be used if the insurance company follows a national corporate bond index c. an adjustable interest rate can be used if the limit is based on the average monthly published interest rate set by Moody's d. policy loan interest rates were set by the Office of Insurance Regulation in 19
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a |
