Insurance Pre-licensing : Chapter 2 quiz
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender
When J. applied for a life insurance policy, the agent informed him that a medical exam would be required. The exam may be completed by..
A paramedic or examining physician at the insurer's expense.
Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years?
A policy summary
Is classifying a risk, the Home of Office underwriting department will look at all of the following EXCEPT..
Applicant's past income
When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?
Application
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?
Cost comparison methods
Which of the following is usually true of a participating life insurance policy?
It pays dividends to policy owners.
An applicant who receives a preferred risk classification qualifies for...
Lower premiums than a person who receives a standard risk.
What process do insurance companies use to determine whether or not a particular applicant is insurable?
Underwriting
What is the name of the insured who enters into a viatical settlement?
Viator
All of the following are personal uses of life insurance EXCEPT
buy-sell agreement
Which of the following premium modes would result in the highest annual cost for an insurance policy?
monthly
The insurance company underwriter could find information concerning the personal activities and character of an applicant from which of the following reports?
producer's report
When a replacement is involved, a replacing insurance company is responsible for all of the following EXCEPT...
provide a copy of the Important Notice Regarding Replacement of Life Insurance to the applicant
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than...
with the policy
