quiz 5

Before a life insurance policy is issued, which of these components of the contract is required?

Applicant's signature on application

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

At the time of application

Who is NOT required to sign a life insurance application?

Beneficiary

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when:

P receives the policy and pays the premium

Which of these do NOT constitute policy delivery?

Policy issued with a rating

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as:

a representation

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

jan 26

Which parts of a life insurance policy are guaranteed to be true?

warranty

Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of:

$10,000

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Set up a meeting with the applicant to answer the remaining questions

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following

Signed HIPAA disclosure