LIFE & HEALTH INSURANCE
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
Pay the policy proceeds only if it would have issued the policy.
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will...
The date of medical exam
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
Conditions
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT...
With the policy
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant...
The policy will be interpreted as if the insurer waived its right to have an answer on the application
If an insurer issued a policy based on the application that had unanswered question, which of the following will be TRUE?
Applicant's past income
In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT
An applicant submits an application to the insurer
In insurance, an offer is usually made when
Adhesion
Insurance policies are not drawn up through negotiations and an insured has little to say about its provisions. What contract characteristic does this describe?
"Not taxable" since the IRS treats them as a return of a portion of the premium paid.
On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are...
Other insurance coverages
Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT
Considered to be true to the best of the applicant's knowledge
Representations are written or oral statements made by the applicant that are...
Erase the incorrect answer and record the correct answer
Something an agent should NOT do if a change on the application needs to be made
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
A presentation of non-guaranteed elements of a policy
The term "illustration" in a life insurance policy refers to
Signed waiver of premium
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
One-sided: only one party makes an enforceable promise
What is a definition of a unilateral contract?
To allow the consumer to compare the costs of different policies
What is the purpose of the buyer's guide
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will the coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
If it is intentional and material
When would a misrepresentation on the insurance application be considered fraud?
Their premiums are lower
Which is generally true regarding insureds who have been classified as preferred risks?
Standard
Which of the following is a risk classification used by underwriters for life insurance?
Premium amounts and surrender values
Which of the following will be included in a policy summary?
Medical Information
Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?
The producer
Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly?
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?
Policy summary
describes the features and elements of the specific policy for which a person is applying
Exchange of unequal values
the aleatory nature of an insurance contract
What is NOT true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender
The customers associates, friends, and neighbors provide the report's data
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
Return the application to the applicant for completion
Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?
Selection, classification, and rating of risks
Which of the following best details the underwriting process for life insurance?