Chapter 1 Life Insurance Missed Questions

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

if it is intentional and material

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

issue the policy anyway and pay the face value to the beneficiary

which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives

medical information

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

must be advised that a copy of the report is available to anyone who requests it

Under the Fair Credit and Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must

respond to the consumer's complaint

which is the appropriate action by the insurer if a prospective insured submitted an 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

what is the purpose of a disclosure statement in life insurance poligices

to protect agents and insurers against lawsuits

which of the following that is guarenteed to be true, and if untrue, may breach an insurance contract

warranty

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant

with the 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

when is the earliest a policy may go into effect

When the application is signed and a check is given to the agent

if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notive of insurance info practices has been provided, the report may contain all of the following information except the applicants

ancestry

In classifying a risk, the Home Office underwriting department will look at all of the following EXCEPT

applicants past income

what is the primary source of information used for insurance underwriting

application

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

when must insurable interest exist in a life insurance policy

at the time of application

which of the following not be considered an exception to the National Do Not Call Registry List

calls based from outside of the United States