Texas Life and Health

Statements made by an application for a life insurance policy that are true to the best of the applicant's knowledge are referred to as

Representations

Which of the following includes information regarding a person's credit, character, reputation, and habits?

Consumer Report

An applicant is seeking an insurance policy. In the underwritting process, it was defined that the applicant has some dangerous habits, a risky occupation, and poor health. Which of the following is TRUE concerning the policy premium?

It will likely be higher because the applicant is a substandard risk.

If the policy has unanswered questions on the application, what is assumed?

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

What is the purpose of a disclosure statement in life insurance policies?

To help consumers make informed decisions.

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,

The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.

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?

Premium Receipt

Agent Z takes an application for a life policy and accepts a check for the first premium. The application and check are mailed to the insurer, who discovers the check is not signed. When will the coverage for this policy go into effect?

When the policy is issued and the premium is paid.

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

Insurance

Who makes up the Medical Information Bureau?

Insurers

Inspection reports may be obtained by an insurance company from

An independent investigating firm.

Which of the following types of risk will result in the highest premium?

Substandard risk