Life Insurance Underwriting TEST

If the agent feels that there could be a misrepresentation on the part of the applicant for insurance, what must the agent do?

inform the insurance company

When delivering a new policy, a producer must also deliver a document containing the producer's name, office address, the insurer's home office address and the generic type of policy issued. This document includes premium amounts, cash values, surrender values and death benefits for specific policy years. What is this document called?

A policy summary

Who must sign the application for life insurance?

Applicant, Owner, Agent

What report includes information regarding a person's credit, character, reputation, and habits?

Consumer report

Who is the M.I.B., Medical Information Bureau, funded by?

Insurance companies

What is the special significance of a conditional receipt?

It is intended to provide coverage on a date earlier than the date of the insurance of the policy.

Is the field underwriter responsible for determining risk classification of the proposed insured?

No

Who needs to have an insurable interest and when?

Owner and Applicant during application process

What document describes specific information about policy provisions and benefits?

Policy summary

What is the main responsibility of a company's underwriting unit?

Risk selection and classification

Would a Standard Risk Classification, Preferred Risk Classification, or a Substandard Risk Classification pay a higher premium?

Substandard

What does insurance refer to?

Transferring possible risk

Insurance companies have several departments handling various responsibilities in the insurance of policies. Which department is primarily involved with the selection of risks?

Underwriting Department

A substandard risk compared to a standard risk would pay what kind of premium?

a higher premium

The Medical Information Bureau (MIB) is ?

a source of medical information to alert insurers to adverse medical history

Who is considered a field underwriter?

an agent

When must insurable interest exist in life insurance?

application date

Representations are statements made by he applicant that are?

considered true to the best of the applicant's knowledge

An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin?

on the date of the application

If a proposed insured dies before the policy is issued but while in possession of a conditional receipt, what will the company do?

pay the policy proceeds if the policy would have been issued as applied for

If no receipt is issued at the time of application, a statement of good health is usually required at the time of ________?

policy delivery

If an agent fails to obtain an applicant's signature on the insurance application, the agent must

return the application to the applicant for signature

In insurance contracts, a warranty is a ?

statement that must be true

What is the main source of underwriting information used by the company in the risk selection process?

the application