Maine Life Insurance LAW
solicitation and cost disclosure
-buyers guide
-policy summary
-policy illustrations
buyers guide
contains information that helps applicant decide how much life insurance to buy
determine what type of policy is needed and compares the costs of similar policies
p...
Maine Life Insurance LAW
solicitation and cost disclosure
-buyers guide
-policy summary
-policy illustrations
buyers guide
contains information that helps applicant decide how much life insurance to buy
determine what type of policy is needed and compares the costs of similar policies
policy summary
written statement describing the elements of a life insurance policy
has name, address of producer & insured
has name of policy and each rider
tells annual premium, cash surrender values, guaranteed death benefits and policy loan
interest rates
also has life insurance cost indexes, including a surrender cost index and a net payment
cost index
references to policy dividends
must include a statement that DIVIDENDS are not guaranteed
things producer has to do before accepting premium
must provide a BUYER'S GUIDE & preliminary statement of policy cost BEFORE
accepting the initial premium
things producer has to do before or at time of policy DELIVERY
same things as before accepting premium & must also provide a POLICY SUMMARY
preliminary statement of policy cost
statement, similar to buyer's guide but less detailed
designed to help applicant compare cost of different life insurances and determine how
much coverage to buy
considered misrepresentation
if you fail to provide: buyer's guide, preliminary statement of policy cost or policy
summary
policy illustrations
basic illustrations must include: NUMERIC SUMMARY of death benefits, cash values
and contract premium for policy years (5,10,20 and at age 70)
also must include statement signed by the applicant and the producer stating that
with illustrations, can things change?
yes, even if you receive the copy of the illustration the insured has to understand that
ANY NON-GURANTEED ELEMENTS ILLUSTRATED ARE SUBJECT TO CHANGE
copy of the illustration
when used by a producer must be submitted to the insurer and provided to the applicant
AT THE TIME OF POLICY APPLICATION
what if no illustration used?
, if not illustration used by producer, or if policy is applied for other than illustrated.....
applicant MUST SIGN A FORM acknowledging that an ILLUSTRATION CONFORMING
to the policy is issued will be provided no later than AT THE TIME OF POLICY
DELIVERY
supplemental illustrations
are available at the request of the applicant
policy illustrations requirement apply to ALL GROUP AND INDIVIDUAL LIFE
EXCEPT:
variable life
individual and group annuity contracts
credit life
life policies w/no illustrated death benefits on any individual exceeding $10,000
AIDS testing requirements
must be voluntary
only undertaken w/patient's knowledge
must give their written informed consent before test can happen
if questions are designed to establish the sexual orientation of the applicant, then no
questions may be used on app
insurers must notify applicant of available post-test counseling if HIV positive
HIV positive tests are reported to MIB
reported in non-specific manner as GENERIC BLOOD DISORDERS
changes in the application
no alterations w/o applicants written consent
except insertions may be made by insurer for ADMINISTRATIVE PURPOSES ONLY
policy provisions
maine has a 10 DAY FREE LOOK, starting @ policy delivery on INDIVIDUAL LIFE
INSURANCE
all life policies have 30 DAY GRACE PERIOD
what happens if claim arises during grace period?
the amount of the premium due, together with interest, MAY BE DEDUCTED FROM
THE POLICY PROCEEDS
life insurance incontestable
AFTER they have been in force for TWO YEARS
on participating life insurance policies, what must the insurer do annually w/any
surplus? (profits)
they must annually APPORTION(divide) any divisible surplus(profits) by end of 3RD
POLICY YEAR
may elect to have dividends paid in cash, or applied to any other dividend option
dividends are NOT guaranteed
viatical settlements
written agreement between viator and settlement provider establishing the term of which
COMPENSATIONS will be paid IN RETURN for the viator's ASSIGNMENT of his LIFE
INSURANCE DEATH BENEFITS
settlement provider
a person other than the viator that enters into a settlement contract
viator
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ACADEMICAIDSTORE. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
