Life and Health chapter 1

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

legal purpose, offer and acceptance, and considerations

Because an insurance contract is a legal contract, it must conform to state laws governing contract which require?

Erase the incorrect answer and record the correct answer

If a change needs to be made to an application for insurance, the agent may not do what?

Signed waiver of premium

Upon policy delivery the producer may be required not to obtain a?

Something of value exchanged for something else of value

What is a consideration?

To explain features and benefits of a proposed policy to a consumer

What is the purpose of the disclosure statement in life insurance policies?

The policy will be treated as if the insurer waived its rights to have an answer on the application

If an insured issued a policy based on the application that had unanswered questions,

when the agent delivers the policy, collects the initial premium, and completes an acceptable statement of good health

If the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued, when will coverage begin?

Exchange of unequal values

What is an aleatory insurance contract

Insurers

Who makes up the medical information bureau?

To help the insured understand all aspects of the contract

Why should the producer personally deliver the policy when the first premium has already been paid?

The completed application is submitted

In insurance an offer is usually made when?

Considered to be true to the best of the applicants knowledge

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

An application on which the medical information is completed by the applicant and the agent only

What is a nonmedical application?

Premium receipt

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