Ch 5 Exam
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)
Anti-Money Laundering violation
Before a life policy is issued, which of these components of the contract is required?
Applicants signature on application
what is the initial source of underwriting for an insurance policy
Application containing statements from the insured
A life insurance application must be signed by all of these EXCEPT
Beneficiary
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium
The entity whose sole purpose is sharing medical data among its member companies is called the
Medical Information Bureau (MIB)
Which of these do NOT constitute policy delivery?
Policy issued with a rating
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When producer delivers policy and collects initial premium
The USA Patriot Act was enacted in
2001
Before a life policy is issued, which of these contract elements is necessary?
A signed application by the prospect
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and
the initial premium
why is an applicants signature required on a life insurance application
To attest that the statements of the application are accurate to the best of the applicants knowledge
which federal law allows an insurer to obtain an inspection on a potential insured?
fair credit reporting act
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Policy was returned within the free-look period, premium will be fully refunded
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
upon policy delivery a signed good health good health statement is requested from the applicant why would this be necessary
The initial premium was not submitted with the application
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
applicant's physician
what is being delivered during a policy delivery
insurance contract to the proposed insured
A $20,000 life insurance policy application is completed , however the producer does not collect the initial premium . At what point does the coverage go into effect?
when the applicant receives the policy and pays the initial premium