The answer depends on the state in which the agent is licensed and the rules of the insurance company with which the agent is affiliated. Some states have laws that prohibit an insurance agent from cashing in an old policy for an applicant, while other states allow it as long as the agent discloses the information to the insurance company.
Other related questions:
Q: Which rule would apply if an agent knows an applicant is going to cash in and old policy and use the funds to purchase new insurance?
A: There is no definitive answer to this question as it will depend on the specific circumstances of the case. However, some possible rules that could apply include the insurance company’s rules on cashing in policies, as well as any state or federal laws that may be relevant.
Q: How must a replacing producer respond to an applicant wishing to replace existing life insurance quizlet?
A: There is no specific answer to this question since it will vary depending on the insurer and the situation. However, in general, the replacing producer will need to obtain certain information from the applicant in order to determine if they are eligible for replacement coverage. This may include information about the existing life insurance policy, the reasons for wanting to replace it, and the applicant’s financial situation.
Q: During what period is a new life insurance policy owner entitled to renew a policy and return it for a full refund?
A: There is no universal answer to this question, as it varies from policy to policy. However, most life insurance policies allow the policyholder to return the policy for a full refund within a certain period of time after purchase, typically 30 days.
Q: What kind of policy does not typically require proof of insurability?
A: There are a few types of insurance policies that do not typically require proof of insurability, such as guaranteed issue life insurance policies and some types of long-term care insurance.