Chapter 4 Exam - Life Underwriting
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT:
Signed HIPPA disclosure *The HIPAA disclosure should be taken at the time of sale with the application.
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When the conditions of the receipt are met *A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect.
The USA Patriot Act was enacted in:
2001 *to detect and deter terrorism
An incomplete life insurance application submitted to an insurer will result in which of these actions?
Application will be returned to the writing agent *If the company discovers a mistake or incompletion, it usually returns the application to the producer.
K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?
Conditional *A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect.
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer with initial premium. *In this situation, the producer should submit the application to the insurance company without the premium. However, if a premium is not paid with the application, the policy will not become valid until the initial premium is collected.
What is the purpose of a Policy Summary?
It highlights the critical parts of the policy issued
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n):
exclusion for the medical condition. *In this situation, the policy may be issued with an exclusion for the medical problem.
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:
probability of making timely premium payments *The purpose of these reports is to provide a picture of an applicant's general character and reputation, mode of living, finances, and any exposure to abnormal hazards.
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application
the initial premium
The reason for backdating a policy is
to obtain a premium rate based on an earlier age.
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
A life insurance application must be signed by all of the, EXCEPT: -the policyowner -the agent -the insured (if an adult) -beneficiary
Beneficiary
Who is NOT required to sign a life insurance application?
Beneficiary
On delivery of a policy, a signed statement of good health is typically requested if:
The application was submitted without the initial premium
