Chapter 2 Review Questions

The person selling a life insurance policy is called a:

a.  viatical settlement provider
*b.  viator
c.  viatical settlement broker
d.  viatical settlement agent


The person buying a life insurance policy is called a:

*a.  viatical settlement provider
b.  viator
c.  viatical settlement broker
d.  viatical settlement agent


The person representing a viator is called a:

a.  viatical provider
b.  viator
*c.  viatical settlement broker
d.  viatical settlement agent

Which of the following is true regarding viatical settlement brokers and agents?

a.  viatical settlement brokers and agents represent the viator
b.  viatical settlement brokers and agents represent the viatical settlement company
*c.  viatical settlement brokers represent viators and viatical settlement agents represent viatical settlement providers
d.  viatical settlement brokers represent viatical settlement providers and viatical settlement agents represent viators

According to the Health Insurance Portability and Accountability Act (HIPAA) a terminally ill person has a life expectancy of:

a.  6 months or less
b.  12 months or less
*c.  24 months or less
d.  48 months or less

which of the following is not considered an "activity of daily life" or ADL in defining a chronic illness?

a.  eating
b.  driving
*c.  mobility
d.  dressing

Non-conforming policies are:

a.  policies in which the insured is not the policyholder
*b.  policies in which the contestability period has not elapsed
c.  policies with restrictions on the assignability of ownership
d.  any of the above would classify a policy as non-conforming


To begin the lifetime settlement process, the selling policyholder must provide the settlement provider with:

a.  a written application
b.  a copy of the policy and a policy release form
c.  a medical release and statement of mental competency
*d.  all of the above

Experts recommend policyholders thinking of selling their life insurance policies to:

a.  obtain multiple bids from competing settlement companies
b.  discuss their life expectancy with their physician
c.  be sure viatical settlement proceeds will be held by an independent escrow agent
*d.  all of the above


Viators can expect a typical settlement to be completed within:

a.  one to two weeks
b.  two to four weeks
*c.  four to ten weeks
d.  none of the above