Life Insurance Basics
An advertisement describes a life policy chiefly as a savings and investment plan. Why is that a problem?
Answer and explanation
Answer: A. Presenting a life policy as a savings or investment vehicle obscures its nature and is treated as a misrepresentation. The objection is to the character of the description rather than to advertising to the public or to disclosure of returns.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, advertising
More life insurance basics questions
- An insurer mails a policy to its producer for unconditional delivery to the owner. What is the significance of that?
- An owner paying annually dies four months into the policy year. What happens to the unearned part of that premium?
- An underwriter wants records from the applicant's doctor. What must be in place first?
- At delivery the applicant discloses a hospital admission that occurred after the application was signed. What follows?
- During a sales presentation a producer urges a client to drop an existing policy for a new one using incomplete comparisons. What practice is that?
- During policy delivery, the owner notices a typo in the beneficiary's middle name. How should the producer assist?
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