Question 7007 of 303 · California Life-Only Agent Exam

Which of the following is a potential disadvantage of replacing a whole life policy with a new one?

Exactly one answer is correct.

AThe cash value always increases once the new policy takes effect
BThe old policy's premiums are refunded to the owner in full
CA new contestable period and suicide exclusion may start
DThe insured is relieved of all surrender charges on the old policy

Show solution

Correct answer to question 7007

C: A new contestable period and suicide exclusion may start

Explanation

New incontestability and suicide periods begin, and acquisition costs are incurred again. Replacement may also expose the insured to new underwriting.

7008Twisting is the practice of
7009A 1035 exchange is permitted when a policy owner
7010When replacing a life policy, what must the replacing insurer typically do?
7011The purpose of California's replacement regulations is to
7012The free look provision allows the policy owner to
7013Which agent practice violates replacement rules?

Which of the following is a potential disadvantage of replacing a whole life policy with a new one?

Correct answer to question 7007

Explanation

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