chapter quiz - underwriting

if no receipt is issued at the time of application, a statement of good health is usually required at the time of

policy delivery

representations are statements made by the applicant that are

considered true to the best of the applicant's knowledge

a substandard risk compared to a standard risk would pay

a higher premium

when must insurable interest exist in life insurance?

application date

all the following may have an insurable interest in the insured except

insured's best friend

an insured submits the full premium along with a completed application, and the policy is issued 10 days later. when does the coverage begin?

on the date of the application

if an agent fails to obtain an applicant's signature on the insurance application, the agent must

return the application to the applicant for signature

what is the main responsibility of a company's underwriting unit?

risk selection and classification

the medical information bureau is

a source of medical information to alert insurers to adverse medical history

which of the following is considered a field underwriter?

an agent

which of the following documents describes specific information about policy provisions and benefits?

policy summary

in insurance contracts, a warranty is a

statement that must be true

which of the following would be the main source of underwrting information used by the company in the risk selection process?

application

if the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do?

buyer's guide

which of the following includes information regarding a person's credit, character, reputation, and habits?

consumer report