Life Insurance Basics
On what must a recommendation under Regulation 187 be based?
Answer and explanation
Answer: B. The regulation requires the recommendation to rest on an evaluation of the consumer's relevant suitability information, exercising the care, skill, prudence and diligence of a prudent person familiar with such matters. The agency's appointments and the insurer's guidance do not supply that basis.Source: New York Reg. 187, 11 NYCRR 224 — 11 NYCRR 224
More life insurance basics questions
- If an insurer's expected investment return rises, what happens to the premium, other things being equal?
- In a corporate key-person life insurance arrangement, who is the policyowner, premium payor, and beneficiary?
- May a New York producer point to the Life Insurance Company Guaranty Corporation as a reason to buy?
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Two partners agree that on the death of either, the survivor will buy the deceased's share. How does life insurance support that?
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
621 New York questions like this one.
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