What are the requirements for life insurance illustrations?
For term insurance, a policy illustration usually shows at least three things: current and maximum premiums for each year; total premiums paid up to that year; and each year’s death benefits.
When using an illustration for life insurance an insurer or agent can do which one of the following?
When using an illustration for life insurance, an insurer or agent can do which one of the following? When using an illustration for life insurance, an insurer or agent will not represent the policy as anything other than a life insurance policy.
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.
What are insurance illustrations?
Insurance illustrations are what the industry gives clients to help them understand a policy. They are simply hypothetical representations that reflect the critical assumptions the company used to compute policy results. Insurance illustrations often contain 20 pages of densely packed numbers and legal disclaimers.
Do all policies need illustrations?
In all cases where an illustration is required, the policy applied for or issued must have an illustration accurately representing the policy and appropriately signed by the applicant or policy owner and the authorized company representative.
What 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 are the two components of a universal policy?
How Does Universal Life Insurance Work? Universal policy premiums include two components: the cost of insurance amount and the savings component amount, also known as the cash value.
What must an insurer have in order to be authorized?
Which of the following must an insurer obtain in order to transact insurance within a given state? Certificate of authority. All insurers (domestic, foreign, or alien) must obtain a certificate of authority before transacting insurance within a given state.
What is an example of rebating?
An example of rebating is when the prospective insurance buyer receives a refund of all or part of the commission for the insurance sale. Rebates can be made in the form of cash, gifts, services, payment of premiums, employment, or almost any other thing of value.
Which is the best reason to purchase life insurance rather than annuities?
The annuity offers tax-deferred savings and retirement income. Simply put—life insurance protects your loved ones if you die prematurely while the annuity protects your income if you live longer than expected.
Which of the following is the basis for a claim against an insurance policy?
Which of the following is the basis for a claim against an insurance policy? … Damage to a third-party property for which the insured is legally liable.
Which of the following is usually true of a participating life insurance policy?
Which of the following is usually true of a participating life insurance policy ? Pays dividends to the policy owners. An agent accepts a payment after 35 days it is due , telling the insured that there will not be a problem keeping the policy in force. This is an example of what type of agent authority ?