FAQ: Which Of The Following Cannot Be Included Along With Illustrations Used To Sell Life Insurance?

Which of the following CANNOT be included along with illustrations used to sell life insurance? Illustrations used to sell life insurance cannot use the term “vanishing premium” – or any similar term – that implies the policy becomes paid up.

What is not included in life insurance illustration?

Issue: One of the many disclosures available to life insurance consumers is the life insurance illustration. Exceptions to this include variable life insurance, credit life insurance contracts, and annuities. The model allows the insurer to choose whether a policy form will be marketed with an illustration.

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Which of the following must be included in an illustration used in the sale of life insurance?

(1) Following the narrative summary, a basic illustration shall include a numeric summary of the death benefits and values and the premium outlay and contract premium, as applicable. For a policy that provides for a contract premium, the guaranteed death benefits and values shall be based on the contract premium.

Which of the following would be least likely to be considered a legitimate need that would be paid by insurance proceeds?

Which of the following would LEAST likely be considered a legitimate need that would be paid by insurance proceeds? Vacation travel expenses.

What is the term used when a person sells his assets as a way to gain money?

What is the term used when a person sells his assets as a way to gain money? Liquidation. You just studied 69 terms!

What are policy illustrations?

A policy illustration shows how the policy’s value is expected to change over time and what assumptions those values are based on. The actual legal guarantees associated with the policy are contained in the policy’s contract.

What is a life policy illustration?

A life insurance policy “illustration” is a set of projections, prepared by the actuarial department of the insurance company. It shows how your policy will perform over your lifetime. It includes financial projections for each year. If it’s a term policy, the projections extend to when the policy ends.

Which of the following is not a required provision in group life policies?

Which provision is NOT a requirement in a group life policy? An AD&D provision is not required in a group life policy. The correct answer is “the entire cost of the plan is paid for by the employer”. When an employer provides noncontributory group term life insurance, the employer pays the entire cost of the plan.

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What is not an essential element of an insurance contract?

In order for insurance contracts to be legally binding, they must have four essential elements: agreement (offer and acceptance), and legal purpose. Counteroffer is not required.

Which of the following is not considered to be an act of insurance solicitation?

Which of the following is NOT considered to be an act of insurance solicitation? Publishing a magazine where one of the advertisers is an insurer is not considered to be an act of solicitation.

Which of the following are generally not considered when underwriting group insurance?

Which of the following are generally NOT considered when underwriting group insurance? The insureds’ medical history (Group life insurance is written on a group, not individual basis. Generally, medical questions are not necessary.)

Which of the following factors is not considered by an underwriter when determining the premium rates for an individual seeking insurance?

Which of the following factors is NOT considered by an underwriter when determining the premium rates for an individual seeking insurance? Age, medical history, and sex provide sound statistical data for determining the probability of loss. Underwriters must guard against this.

Which of the following is not a group typically recognized as eligible for group insurance?

Which of the following is NOT an eligible group to obtain group life insurance? Group life insurance is limited to employer groups, multiple employer trusts, labor unions, group credit life insurance, and association plans.

Which of the following is not an example of a business use of life insurance?

Which of the following is NOT an example of a business use of Life Insurance? Workers Compensation is a benefit payable when a worker is injured by a work-related injury, regardless of fault or negligence. It is not considered a business use of insurance.

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Which is not an example of insurable interest?

People not subject to financial loss do not have an insurable interest. Therefore a person or entity cannot purchase an insurance policy to cover themselves if they are not actually subject to the risk of financial loss.

Which of the following are examples of third party ownership of a life insurance policy except?

All of the following are examples of a third-party ownership EXCEPT: S applies for a policy on herself and names her husband as the beneficiary. Third-party ownership exists when the insured and the owner of the policy are different persons. A business owner buys a life policy on his own life.

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