life insurance underwriting and policy issues

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

What action should a producer take if the initial premium is NOT submitted with the application?

Forward the application to the insurer without the initial premium

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Set up a meeting with the applicant to answer the remaining questions

All of these are considered sources of underwriting information about an applicant EXCEPT

rating services

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

At the time of application

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

Aviation exclusion

An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?

gender

What would the Medical Information Bureau (MIB) identify?

Testing positive for marijuana use from a previous screening

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

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)

Anti-Money Laundering violation

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

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

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

Why is an applicant'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

A life insurance application must be signed by all of these EXCEPT the policyowner the agent the insured (if an adult) beneficiary

beneficiary