Chapter 2 — Life Insurance High-Yield Notes

insurable interest

a financial or emotional relationship where the policyowner would suffer a loss if the insured dies

at the time of application only

When must insurable interest exist for life and health insurance in california

at the time of application AND loss

When must insurable interest exist for property and casualty insurance?

No

Can you buy life insurance on a stranger?

No

Does the beneficiary need insurable interest?

Anyone

Who can be a beneficiary?

Blood and business

What are the two categories for insurable interest?

Minimum 10 days

What is the free look period for life insurance policies under age 60?

upon signing

When does the free look period begin?

voided and refunded

What happens if the policy is returned during free look?

ages 60+

Who qualifies as a senior for the 30-day free look rule?

Notice on cover page/policy jacket in 12-point bold print.

Senior must receive what kind of notice?

Replacement

Buying a new life policy/annuity that causes an existing policy to lapse/terminate

3 years

How long must insurers keep replacement records?

under 26

Until what age are children dependents covered?

2 years

California life insurance incontestability period?

2 tests

How many positive HIV tests before declining coverage?

65+

Age considered "elder" under California insurance law?

5 years

How long must life agents keep records?

Showing guaranteed and nonguaranteed policy values.

What are illustrations used for?