Completing the Application, Underwriting, and Delivering the Policy

Which of the following includes information regarding a person's credit, character, reputation, and habit

Consumer Report

When an agent collects the initial premium from the applicant, the agent should issue the applicant a...

premium receipt

The term illustration refers to

A presentation of non-guaranteed elements of a policy

What contract characteristic does an insurance policy describe?

Adhesion

In insurance, an offer is usually made when

An applicant submits an application to the insurer

What is an essential element of an insurance contract?

Consideration, Agreement, Legal Purpose

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Inspection Report

Who initials the information on a change in an application?

The applicant

Representations are written or oral statements made by the applicant that are

considered to be true to the best of the applicant's knowledge

When is the earliest a policy may go into effect?

when the application is signed and the check is given to the agent

What is the purpose of a conditional receipt?

It is intended to provide coverage on a date prior to the policy issue

Which of the following best details the underwriting process for life insurance?

Selection, classification, and rating of risks

When the insured is not legally bound to do anything, but the insurer must pay losses covered by the policy

Unilateral Contract

What is included in a policy summary?

producer name and address, insurance company home address, generic name of policy issued, and premium, cash value, surrender value, and death benefit

The Gramm- Leach-Biley Act was passed to

protect private customer information that is filed within a financial institution

What are the three risk classifications used by underwriters in life insurance?

standard, substandard, and preferred

In forming an insurance contract, when does acceptance usually occur?

when an insurer's underwriter approves coverage