Life Insurance

Which is the primary source of informaiton used for insurance underwriting? a. application b. apllicant interviews c. medical records d. private investigations

Application

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 a. conditions b. consideration c. legal purpose d. offer and acceptance

Conditions

Contracts that are prepares by one party and submitted to the other party on a take-it-or-leave-it basis are classified as: a. aleatory contracts b. binding contracts c. contract of adhesion

Contract of adhesion

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a. adhesion b. consideration c. good faith d. representation

consideration

A producer agent must do all of the following when delivering a new policy to the insured EXCEPT a. explain the policy provisions, riders, and exclusions b. collect any premium due c. explain the rating procedures if the policy is rated differently than applied for d. disclose commissions earned from the sale of the policy

disclose commissions earned from the sale of the policy

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? a. Reciprocal b. nonprofit service organization c. stock d. mutual

mutual

The Federal Fair Credit Reporting Act a. prevents money laundering b. regulates consumer reports c. protects customer privacy d. regulates telemarketing

regulates consumer reports

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 medican exam. If the policy is issued, what would be the policy's effective date? a. the date of medical exam b. the date of polcy delivery c. the date of issue d. the date of application

the date of medical exam

When is the earliest a policy may go into effect? a. when the insurer approves the application b. after the underwriter reviews the policy c. when the application is signed and a check is given to the agent d. when the first premium is paid and the policy has been delivered

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

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance? a. a debtor has an insurable interest in the life of a lender b. business partners have an insurable interest in each other c. a husband or wife has an insurable interest in their spouse d. an individual has an insurable interest in his or her own life

a debtor has an insurable interest in the life of a lender

Which of the following is NOT the consideration in a policy? a. the premium amount paid at the time of application b. the promise to pay covered losses c. the application given to prospective insured d. something of value exchanged between parties

The application given to prospective insured