Completing the Application, Underwriting, and Delivering the Policy

Which of the following statements is NOT true concerning insurable interest as it applies to life insurance

A debtor has an insurable interest in the life of a lender

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?

A policy summary

What is the purpose of a conditional receipt

It is intended to provide coverage on a date prior to the policy issue

An applicant who receives a preferred risk classification qualifies for

Lower premiums than a person who receives a standard risk

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application

Return the application to the applicant for completion

Which of the following would qualify as a competent party in an insurance contract

The applicant has a prior felony conviction

In insurance, an offer is usually made when

An applicant submits an application to the insurer

When must insurable interest exist in a life insurance policy?

At the time of application

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

Consideration

All of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT

Education

The insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What should the insurer do with the application?

Return to the applicant for competion

Which of the following is NOT the consideration in a policy

The application given to a prospective insured

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?

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

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

An individual applied for an insurance policy and paid the premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

The date of the medical exam