Kansas Life & Health Insurance Exam — All Questions
3 questions
Kansas law requires individual life insurance policies to contain a 'free look' (right to examine) provision. This gives the policyowner the right to:
- a.Cancel at any time during the first policy year at no cost
- b.Cancel only within 3 days of delivery
- c.Return the policy within the stated period (commonly at least 10 days) after delivery for a full premium refund✓
- d.Receive no refund once the policy has been delivered
A free-look, or right-to-examine, provision lets the policyowner return a newly delivered individual life policy within a stated window (commonly at least 10 days) for a full premium refund. Replacement transactions and policies sold to seniors often carry a longer review period. The exact number of days is set by state law.
What is the purpose of the Kansas life and health insurance guaranty association?
- a.To pay certain covered claims, up to statutory limits, if a member insurer becomes insolvent✓
- b.To guarantee a minimum investment return on every policy
- c.To advertise member insurers to the public
- d.To set the premium rates insurers may charge
The guaranty association is a safety net that pays covered claims up to statutory dollar limits when a member insurer becomes insolvent. Importantly, Kansas law prohibits producers and insurers from using the association's existence as an inducement to buy insurance or in advertising; it is a backstop, not a selling point.
When a Kansas producer recommends replacing a client's existing life insurance policy with a new one, the producer must:
- a.Never disclose the replacement to either insurer involved
- b.Follow the state's replacement rules, including giving the required replacement notices and fair, complete comparisons✓
- c.Wait a full year before the new policy can be issued
- d.Guarantee in writing that the new policy will always be cheaper
Replacement is regulated to protect consumers from losing value when switching policies. The producer must provide the required replacement notice, give the client accurate and complete comparisons, and follow notification steps so the existing insurer can respond. Misleading a client into replacing coverage can constitute twisting.