Life Insurance Test

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

Issue the policy that is requested

If a bank encourages a debtor to buy life insurance to pay off a loan in the event of death, which of the following would be the best option>

Decreasing Term

If an applicant for life insurance submits a completed application to a producer without payment o the first premium, coverage becomes effective when the

Policy is delivered and the premium is paid

The main responsibility of a company's underwriting unit is which of the following

Risk selection

When an insured reaches age 65, the cash value of a 20-pay Endowment at age 65 policy is equal to which of the following amounts?

The face amount of the policy

Which of the following is INCORRECT regarding the producer's duties and responsibilities at the time of the application?

The producer should probe beyond the stated questions if he/she feels the applicant is misrepresenting or concealing information.

An applicants statements on an application are considered to be legal...

Warranties

Who must sign the application?

Applicant, insured, and producer

When must insurable interest exist

Death of insured

A producer takes applications from identical twins who want to buy the same type of policies for the same amount. The insurer issues the policies as applied to, but chargers a 25% higher premium for one of the policies. The difference in premiums is probably due to which of the following factors?

Risk classification

An insurance producer takes an application for a life insurance policy but does not collect initial premium. On delivery of the policy to the proposed insured, the produce must collect the initial premium and which of the following?

The insured's signed statement not continued good health

Which of the following policies is an interest-sensitive form of permanent protection

Universal Life

The primary reason for selecting a Variable Whole Life policy instead of a traditional Whole Life policy is that the Variable Whole Life policy

Has the potential to earn a higher rate of return on the cash value.

The PRIMARY purpose of an inspection report is to assess an pplicants

Health Profile

All of the following would have an insurable interest in an insured EXCEPT your _______?

Close friend

The federal law that permits an applicant for insurance to question the validity and source of any credit information is called?

Fair Credit Reporting Act (FCRA)