Life insurance basics
What is the main purpose of life insurance?
To provide a death benefit to beneficiaries
Which policy provided coverage for a specific number of years?
Term life
How long is the free look period for most life insurance policies in Indiana?
10 days
Which rider allows early access to benefits if the insured is terminally ill?
Accelerated death benefit Rider
What is underwriting?
The process of evaluating an applicants risk
What are 2 basic types of life insurance?
Term & permanent
Which policy builds cash value ?
Whole life
Who regulates insurance in Indiana?
The indiana department of insurance
Which rider waives premiums if the insured becomes disabled?
Waiver of premium rider
What is the adverse selection?
When higher-risk individual's are more likely to purchase insurance
What is the person whose life is insured called?
The insured
Which permanent policy has flexible premiums and adjustable death benefits?
Universal life
What license must someone have to sell life insurance in Indiana?
A life producer license
What provision prevents a policy from being cancelled after it has been in force for a certain period due to misstatements (except fraud)?
Incontestability clause
What is the medical information bureau (MIB) used for?
To help insurers detect material misrepresentations and evaluate risk
Who received the death benefit
The beneficiary
Which type of policy allows the policy owner to choose investment options?
Variable life
What is twisting ?
Replacing a policy through misleading or deceptive comparisons
What provision allows a policyowner to borrow against cash value?
Policy loan provision
What is considered material misrepresentation?
A false statement that would affect the insurer's decision to issue or price a policy.
What just exist before a life insurance policy can be issued?
Insurable interest
Which policy combines term insurance with and investment account?
Variable universal life
What is rebating ?
Offering something of value not stated in the policy to induce a sale.
What clause states that only the policy and application make up the insurance contract?
Entire contract clause
What is the producers fiduciary responsibility?
To act in the clients best interest and properly handle premiums and clients funds.