Chapter 5 Life Insurance Underwriting and Policy Issue Exam
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
Aviation exclusion
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 terms accurately defines an underwriter's assessment of information on a life insurance application?
Risk classification Underwriting, another term for risk selection, is the process of reviewing the many characteristics that make up the risk profile of an applicant to determine if the applicant is insurable and, if so, at standard or substandard rates.
The USA Patriot Act was enacted in
2001
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When producer delivers policy and collects initial premium
On delivery of a policy, a signed statement of good health is typically requested if
The application was submitted without the initial premium
What would the Medical Information Bureau (MIB) identify?
Testing positive for marijuana use from a previous screening
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
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Policy was returned within the free-look period, premium will be fully refunded
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
applicant's physician
Who is NOT required to sign a life insurance application? 1.Adult insured 2. Policyowner 3.Agent 4.Beneficiary
Beneficiary
A Medical Information Report (MIB) report may disclose which of the following
Prior use of marjuana
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT 1.policy is delivered 2.free-look period has expired 3.insurance company issues policy 4.initial premium is collected
free-look period has expired
