Chapter 7 - Life Underwriting

After an insurance application has been originated, the producer normally...

Is the major personal contact to the insured

The initial premium for a life insurance policy is typically paid in what way?

It is typically obtained by the producer and forwarded to the insurer

After an applicant reads and signs an insurance application, he/she should be conscious of the fact that...

A false statement could lead to loss of coverage

An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true?

Applicant has a right to receive a copy of the report

In what situation could an insurance policy's coverage be modified?

Applicant is a substandard risk

A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?

Beneficiary receives $50,000 income tax-free

Which of these is NOT an underwriting responsibility of a life insurance agent?

Determining the final rate classification

When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be underwriting requirement?

Eye examination

Insurable interest in one's own life is legally considered as...

Generally unlimited

When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?

Give notice, explain, and allow opting out

Field underwriting by a producer...

May result in the disclosure of hazardous activities of the applicant

Which of these is NOT used as selection criteria in the underwriting process of a life insurance application?

National origin

When must a producer provide disclosure about information practices to an applicant?

Prior to or at the time of signing the application

When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?

Producer

Which of these is NOT considered the responsibility of a producer during the underwriting process?

Selecting the final approval date

The Medical Information Bureau consists of members from which group?

Insurance companies

All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT...

Leave a conditional receipt with client

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

The reason for backdating a policy is...

To obtain a premium rate based on an earlier age