Ch2. Field Underwriting, Application, Premiums, Receipts

At what age may a minor purchase a life or health insurance contract?

15

Which of the following statements about a temporary insurance agreement is CORRECT?

It provides temporary coverage until an application is rejected or the policy is issued.

A life insurance application can usually be backdated for a maximum of how many months?

6 months

Telemarketers may call phone numbers not on the Do Not Call List from:

8am to 9pm

Which of the following does not demonstrate constructive delivery?

A conditional receipt is issued to the applicant

In Ray's application for life insurance an applicant failed to complete one part regarding family history. In his statement, the agent described the family as long-lived and healthy. If an insurance company accepts the application in the incomplete form and the applicant for coverage dies young from a cardiac condition that had taken the lives of both his parents before age 50, will the company deny or accept the claim of the beneficiaries?

It will pay the claim, because in accepting the application, it waived its right to the missing information.

If required by the insurer, the statement of good health must be collected by the producer at the time of:

Policy delivery

Field underwriting ________ adverse selection.

Reduces

Who administers the National Do Not Call Registry?

The Federal Trade Commission

Alexander's life insurance policy is rated. Of the following, who must explain the reason for the premium increase to Alexander?

The agent

If a company issues a conditional receipt to an applicant who has paid an initial premium for a policy that does not require a medical examination:

The applicant is immediately covered.

All of the following statements are true regarding insurance application procedures, EXCEPT:

The application is one of the key sources of information used by underwriters.

An individual signed an application for a $100,000 life insurance policy and paid the first premium on January 1. The agent issued an insurability receipt. A week later, the required medical examination proves the person insurable. If the person dies before the insurer approves the application:

The coverage will be retroactively effective.

The agent must provide the buyer's guide to the applicant:

When the policy is delivered

Coverage is effective:

With collection of the initial premium, approval of the application, policy issuance and delivery