Life Insurance- Application, Underwriting, Delivering

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Which of the following individuals must have insurable interest in the insured?

The policyowner

An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of

a STOLI policy

What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

$2,500

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium

Whose responsibility is it to determine that all the questions on an insurance application are answered correctly?

The producer

If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about

Whether an insurable interest exists between the individuals

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

An insurance contract requires that both the insured and insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Conditional

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?

Consideration

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Consideration

STOLI policies are in direct opposition of the principle of

Insurable interest

The Federal Fair Credit Reporting Act...

Regulates consumer reports

All of the following are requirements for life insurance illustrations EXCEPT

They must be part of the contract

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

Conditions

Who makes up the Medical Information Bureau?

Insurers

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT

Issuing the policy that is requested

The Gramm-Leach-Bliley Act was passed to

Protect private customer information filed with a financial institution.

Which of the following documents delivered to the policyholder includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years?

A policy summary

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Which of the following best describes the aleatory nature of an insurance contract?

Exchange of unequal values

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

The Fair Credit Reporting Act


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