Insurance Questions and Answers Already Passed

Insurance Questions and Answers Already Passed When an existing life insurance policy is being reissued with a reduction in cash value, the producer must sign the Notice Regarding Replacement of Life Insurance or Annuity". When a policy has been reissued with any reduction in cash value, that is considered a replacement. A Notice Regarding Replacement must be signed by both the producer and applicant The life insurance and annuity replacement regulation defines replacement as exchanging an existing policy for a new policy The Replacement of Life Insurance and Annuities regulation is designed to protect the interest of the policyowner Which of the following statements is CORRECT if an insured converts his Life policy to Paid- Up Insurance and buys new insurance? The transaction is considered replacement Which of the following violations is considered an unfair trade practice? Coercion Which of the following statements is CORRECT about the replacement of one insurance policy with another? It is strictly regulated and requires full disclosure by both the producer and the replacing insurance company Continuing education requirements in West Virginia apply to which of the following persons? Resident producers A replacement of an existing Life insurance policy occurs when the cash value is subjected to loans exceeding 25% Under a Group Life insurance policy, an insured may assign a MAXIMUM of what percentage of the insured's coverage? 100% Individual Life and Accident & Sickness insurance policies other than Medicare Supplements and direct-response policies, must state that the policyholder has a right to return the policy within a MAXIMUM of how many days after policy delivery? Ten An insurance policy has the right to defer granting a policy loan for a maximum of how many months after receiving the loan application? 6 Replacement is involved in all of the following situations EXCEPT when a Term policy is converted to a permanent plan with the same insurance company Under West Virginia law, a group life policy must cover a minimum of how many employees? Two An insurance company licensed in West Virginia and domiciled in Pennsylvania is known as a foreign company Which of the following parties must provide an insured with proper disclosure concerning the replacement of an insurance company? The producer who sells the new insurance policy If a producer knowingly violates the Unfair Trade Practices laws of West Virginia, the Office of the Insurance Commissioner may fine the producer a MAXIMUM of which of the following amounts per violation? $5,000