Chapter Exam- Life Underwriting
Aviation Exclusion
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
Waived one of it's legal rights
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:
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
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?
The initial premium
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and
Free-look period has expired
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:
Collect initial premium along with a signed health statement
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?
2001
The USA Patriot Act was enacted in:
Signed HIPPA disclosure
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT:
Forward the application to the insurer without the initial premium
What action should a producer take if the initial premium is Not submitted with the application?
Insurance contract to the proposed insured
What is being delivered during a policy delivery?
It highlights the critical parts of the policy issued
What is the purpose of a Policy Summary?
Detect and deter terrorism
What is the purpose of the U.S.A. Patriots Act?
Fair Credit Reporting Act
Which federal law allows an insurer to obtain an inspection report on a potential insured?
Applicant's Physician
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
Application will be returned to the writing agent
An incomplete life insurance application submitted to an insurer will result in which of these actions?
Gender
An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?
Exclusion for the medical condition
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n):
to obtain a premium rate based on an earlier age
The reason for backdating a policy is
When producer delivers policy and collects initial premium
When does a life insurance contract become effective if the initial premium is not collected during the application process?
Inform insurer of relevant information not included on the application
Which of these actions should a producer take when submitted an insurance application to an insurer?
Policy issued with rating
Which of these do NOT constitute policy delivery?
Marital Status
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Warranty
Which parts of a life insurance policy are guaranteed to be true?
Beneficiary
Who is NOT required to sign a life insurance application?
Rating Services
All of these are considered sources of underwriting information about an applicant, EXCEPT:
When the conditions of the receipt are met
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
Applicant's signature on application
Before a life insurance policy is issued, which of these components of the contract is required?
January 26
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 25 and collected the first premium. When did the coverage become effective?
The application was submitted without the initial premium
On delivery of a policy, a signed statement of good health is typically requested if:
P receives the policy and pays the premium
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:
