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Life and Health Insurance Producer Exam

Replacement (VT): practice questions

Our Life & Health Insurance bank has 5 questions on this topic. Here are 4 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Vermont

Within what time must a Vermont replacing insurer notify the existing insurer of a proposed replacement?

  1. Ten days after the free look ends
  2. 30 days after the policy is issued
  3. 24 hours
  4. Five business days
Show the answer

D. Five business days — Code Vt. R. 21-020-010 § 5(A)(2).

Question 2 · Vermont

In a Vermont replacement, how long does the owner have to return the new policy or contract for a refund?

  1. Two weeks
  2. 30 days from delivery
  3. 20 days from the date of application
  4. 10 days
Show the answer

B. 30 days from delivery — Code Vt. R. 21-020-010 § 5(A)(4).

Question 3 · Vermont

Which transaction is exempt from Vermont's replacement regulation?

  1. Replacing a whole life policy with a new universal life policy
  2. Surrendering an annuity to buy a new one
  3. Using a policy's cash value to pay a new premium
  4. Replacing nonrenewable, nonconvertible term expiring within five years
Show the answer

D. Replacing nonrenewable, nonconvertible term expiring within five years — Code Vt. R. 21-020-010 § 1(B)(8).

Question 4 · Vermont

How must a Vermont producer handle the replacement notice when the applicant has existing coverage?

  1. Read it aloud unless declined, and have both sign it
  2. Mail it to the applicant after the new policy is issued
  3. Give it orally, with no signatures required
  4. File it with the insurer without showing the applicant
Show the answer

A. Read it aloud unless declined, and have both sign it — Code Vt. R. 21-020-010 § 3(B).

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