Solicitation and cost disclosure - answer--buyers guide
-policy summary
-policy illustrations
Buyers guide - answer-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 su...
, MAINE LIFE INSURANCE LAW EXAM
Solicitation and cost disclosure - answer--buyers guide
-policy summary
-policy illustrations
Buyers guide - answer-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 - answer-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 - answer-must include a statement that dividends
are not guaranteed
Things producer has to do before accepting premium - answer-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 - answer-same things
as before accepting premium & must also provide a policy summary
Preliminary statement of policy cost - answer-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 - answer-if you fail to provide: buyer's guide,
preliminary statement of policy cost or policy summary
Policy illustrations - answer-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? - answer-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
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