Chapter 6- Life insurance Underwriting and Policy issue

what is the purpose of a policy summary?

It highlights the critical parts of the policy issued

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

Signed HIPAA disclosure

why is an application's signature required on a life insurance application?

To attest that the statements on the application are accurate to the best of the applicant's knowledge

Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

inspection report

Which of these do NOT constitute policy delivery?

policy issued with a rating

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

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has

"waived one of its legal rights". If an insurer accepts an application that contains unanswered questions and makes the application part of the life contract, the company has waived one of its legal rights.

When an insurance application is taken by a producer, which of these statements is true?

Any changes made on the application require the applicant's initials

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

Applicant's signature on application

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

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

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

aviation exclusion

Who is NOT required to sign a life insurance application?

beneficiary

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)

exclusion for medical condition

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

fair credit reporting act

which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant ?

risk classification

What would the Medical Information Bureau (MIB) identify?

testing positive for marijuana use from a previous screening

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

the initial premium

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?

the policy will be returned within the free-look period, premium will be fully refunded.