Questions : Completing the Application, Underwriting , and delivering the policy

how many days of requesting an investigative report must and ensure notify the customer in writing that the report will be obtained

3 days

insurance policies are not drawn up through negotiations, and an insured has little to say about its provisions. what contract characteristic does this describe?

Adhesion

and insured pays $100 premium every month for his insurance coverage yet then sure promises to pay $10,000 for covered loss. what characteristic of an insurance contract does this describe

Aletory

An individual applied for an insurance policy and paid the initial premium. The insurer issued a coditional reciept. 5 days later the applicant had to submit to a medical exam. If the policy is issued what would be the policy's effective date?

The date of the medical exam

In forming an insurance contract, when does acceptance usually occur?

When an insurer's underwriter approves coverage

when is the earliest a policy may go into effect

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 debtor has an insurable interest in life of a lender

if an insurance company wishes to order a consumer report on an applicant to assist the underwriting process and if a notice of insurance information practices has been provided the reports May contain all of the following information except the applicants

ancestry

in a classifying risk the home office underwriting department will look at all of the following except

applicants passed income

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?

as of the application date

an insurance contract must contain all of the following to be considered legally binding except

beneficiaries consent

if an applicant for a life insurance policy is found to be a substandard risk that insurance company is most likely to

charge a higher premium

when both parties to a contract must perform certain duties and follow rules of conduct to make a contract enforceable the contract is

conditional

because an insurance policy is a legal contract it must conform to state laws governing contracts which require all of the following elements except

conditions

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

credit character reputation and habits

consumer report

contracts that are prepared by one party and submitted to the other party on a ticket or leave it basis or classified as

contracts of adhesion

following would be considered negative information about a consumer except

disputes regarding consumer report information

All of the following information Asian section of a life insurance application except

education

which of the following best describes the aletory nature of an insurance contract

exchange of equal values

When would a misrepresentation on an insurance application be considered fraud?

if it is intentional and material

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

insurable interest exists between the individuals

what do individuals use to transfer their risk of loss to a larger group

insurance

the medical information bureau was created to protect

insurance companies from adverse selection by high risk persons

on true statements on the application intentionally made by insurance that, if discovered, would alter the underwriting decision of the insurance company are called

material misrepresentations

is a definition of a unilateral contract

one-sided only one party makes and enforceable promise

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

policyowner

most agents try to collect the initial premium for submission with the application. when an agent collects the initial premium from the applicant the agent should issue the applicant a

premium receipt

another name for a substandard risk classification is

rated

Which is appropriate action by the insurer if a prospective insured submitted and incomplete application

return the application to the applicant for completion

upon policy delivery the producer may be required to obtain any of the following except

signed waiver of premium

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

the Fair credit reporting act

an applicant signs and application for a $25,000 life insurance policy pays the initial premium and receives a conditional receipt. if the applicant dies the following day which of the following is true?

the beneficiary will receive the full death benefit

in comparison to consumer reports which of the following describes a unique characteristic of investigative consumer reports?

the customer associates friends and neighbors provide the reports data

an individual applied for an insurance policy and pay the initial premium. didn't share issued a conditional receipt. 5 days later the applicant had to submit to a medical exam. if the policy issued, what would the policies effective date be?

the date of medical exam

if an insurer issued a policy on the application that had unanswered questions which of the following will be true

the policy will be interpreted as if the insurer waved its right to have an answer on the application

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

to help the insured understand all aspects of the contract

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

unilateral

which of the following is a statement that is guaranteed to be true and if untrue May breach an insurance contract

warranty

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 coverage begin?

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