The national guide explains the standard life policy provisions, nonforfeiture and dividend options, settlement options and riders. This guide covers the Mississippi rules the exam tests. They are the 10-day free look, the rule on delivering the application with the policy, group life ownership, replacement and illustrations.

Individual life rules

• Free look (Miss. Code 83-7-51):
  • Every individual life policy carries a notice that it may be returned within 10 days of delivery for a refund.
  • A returned policy is void from the beginning, and both parties are restored to where they were before.
• The application (83-7-13): the insurer must deliver a copy of the application with the policy. If it doesn't, it can't deny in a Mississippi court that the statements in the application are true.
• Group life ownership (83-7-9): a group life insured may assign his or her ownership rights, including the conversion privilege and the right to name a beneficiary.

Replacement (Regulation 99-2; 19 Miss. Admin. Code Pt. 2, Ch. 14)

• Purpose: give buyers the information to decide in their own best interest and reduce misrepresentation (Rule 14.01).
• Replacement includes converting an existing policy to reduced paid-up or extended term, or otherwise reducing its value with nonforfeiture benefits (Rule 14.02).
• Financed purchase: using existing values from 4 months before to 13 months after the new policy's effective date is evidence of financing.
• Exempt: among other things, existing nonconvertible, nonrenewable term that expires within 5 years.

The producer's duties (Rule 14.03)

• Get the applicant's statement on existing coverage. If there's none, the producer's replacement duties end.
• Present and read the Notice Regarding Replacement no later than when the application is taken.
• Leave copies of sales material. Material presented electronically must be given in print by delivery.
• Record the applicant's answers accurately. Altering them is a violation (Rule 14.08).

The replacing insurer's duties

• Notify the existing insurer within 5 business days (Rule 14.05).
• Give the owner a 30-day right to return for an unconditional full refund.
• If the insurers are the same or affiliated, give credit for time already served under the old policy's incontestable and suicide periods.
• Keep records 5 years after the new policy ends (Rule 14.04).

Penalties: revocation or suspension, fines, and forfeiture of commissions (Rule 14.08).

Illustrations (Regulation 98-2; 19 Miss. Admin. Code Pt. 2, Ch. 13)

• A basic illustration is a ledger or proposal showing both guaranteed and non-guaranteed elements.
• The signed basic illustration goes to the insurer with the application. The applicant gets a copy.
• If no illustration was used, the producer certifies that in writing. The applicant acknowledges that a conforming illustration will be provided.
• A revised illustration labeled "Revised Illustration" is signed by the owner and producer no later than delivery.
• No one may state or imply that non-guaranteed elements are guaranteed.
• An in-force illustration is one given after the policy has been in force 1 year or more.

Guaranty protection

Up to $300,000 in death benefits and $100,000 in cash value per life (83-23-205).

Common exam traps

• Life free look: 10 days from delivery, void from the beginning. A replacement gets 30 days.
• If the application isn't delivered with the policy, the insurer can't dispute it in court.
• Replacement notice: read at or before the application. The existing insurer is notified within 5 business days. Records are kept 5 years.
• Financed purchase window: 4 months before to 13 months after.