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. The popular trading system "Instinet" is situated in which of the following markets ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  2. When a floor broker asks a specialist, “How’s PDQ?” ...

    The correct answer is d) When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,”  the quote meant ...
  3. A person purchases stock XYZ (an Over The Counter stock) from a company who is also ...

    The correct answer is c When the firm is a market maker in the stock then it must act as a principle. Principal is the main ...
  4. An individual made a lump-sum deposit into a variable annuity of $25,000 ...

    The correct answer is c). Early withdrawal from a non-qualified annuity--prior to age 59½, except for death or disability, ...
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. Professionals

    Should You Add A Securities License ...

Trading Center