If an individual becomes a policyholder of a variable life insurance policy and is uncertain whether ...

By Investopedia Staff AAA
Q:

If an individual becomes a policyholder of a variable life insurance policy and is uncertain whether this is the appropriate instrument for him and his family; within what period of time must the insurance company allow him to exchange the variable policy for a traditional whole life policy without additional evidence of insurability?
a) 9 months
b) 2 years
c) 90 days
d) 18 months

A:

The correct answer is b.
Insurance companies issuing variable life policies must allow the holders of those policies to exchange (or convert) the policy for a whole life policy issued by the company, with the same or lower death benefit for 2 years.


RELATED FAQS

  1. A portfolio hedge is purchased in the form of a spread ...

    First, calculate the net gains/losses under each probability. At 50, the value is: cost of the spread ($1 x 100 share put) ...
  2. Rennie Asada, CFA, is a portfolio manager with Martek Securities ...

    The correct answer is: a) The guiding principle behind Standard VI-B is to take care of clients first, and only after the ...
  3. Which of the following statements is (are) true with respect to price-earnings (P/E) ...

    The correct answer is: b) The reason choice I is true is because during a recession, corporate earnings will generally fall ...
  4. A manager is claiming that her stock picks, on average ...

    The correct answer is: d) 2005 CFA Level 1 LOS: 3.1.B.m
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center