Life Section 3 Quiz

An insurable interest must exist when: APolicy ownership is transferred BA Life insurance policy is cancelled CAt all times DDeath benefits become payable

A

A producer completes an application for Life insurance and sends it to the underwriter who approves it and issues the policy. When is coverage effective: AOn the date the client signed the application BImmediately CWhen the producer delivers the policy and picks up the premium DOn the date the underwriter approved the application

C

An insured's premium for Life insurance is based mainly upon their: AOccupation BGender CRisk classification DAge

C

Once completed and signed by the applicant, a producer may change an application: AWith the verbal consent of the applicant BWith consent of his manager CIf the applicant initials the change DAt anytime

C

Which of the following is true when the insurer issues a 'rated' policy: ANo additional premiums will be due BCoverage is effective immediately CIt is considered to be a counteroffer DIt is considered to be acceptance of the risk

C

A prospect's statements made in the application for insurance constitute a part of which of the following? AIncontestability Clause BSubrogation Clause CCo-insurance Clause DConsideration Clause

D

All of the following are a part of a Life insurance policy, EXCEPT the: AInsuring Clause BIncontestability Clause CCopy of the application DConditional Receipt

D

A producer sends a completed and signed application along with the check for the initial premium to the underwriter, who notices that the applicant forgot to sign the check. When would coverage start? AWhen the producer delivers the policy and picks up a signed check along with a Statement of Continued Good Health BThe date of the conditional receipt CWhen the underwriter received the application and unsigned check DOn the date the application was signed

A

An applicant has been denied insurance coverage because of information contained in a consumer report. According to the Fair Credit Reporting Act, all of the following statements are true about this situation, EXCEPT: AThe applicant has the right to obtain a copy of the consumer report directly from an insurance company that used the report BThe applicant has the right to obtain disclosure of the substance of the information in the consumer report from the reporting agency CThe applicant has the right to obtain the identity of other inquirers who have obtained consumer reports on him within the past six months from the reporting agency DThe reporting agency cannot issue any report containing adverse information about the applicant that predates the report by more than seven years, except in the case of a bankruptcy, which may be reported for a 14-year period

A

If an application for Life insurance is not complete: AThe insurer will return it to the producer BThe insurer will consider it to be void CThe insurer will reject it DThe insurer will issue the policy and request additional information

A

Life insurance becomes effective when: AThe applicant writes the check and receives a conditional receipt BWhen the conditions in the conditional receipt are satisfied CWhen the insurer receives the application at their home office DWhen the producer signs the application

B

On May 8th a prospect filled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14th and issued the policy on May 15th. The producer delivered the policy on May 26th and collected the first premium. The coverage became effective on: AMay 15th BMay 26th CMay 8th DMay 14th

B

A producer takes an application from a proposed insured without receiving payment of the first premium. The insurance company issues the policy and, when the producer visits the proposed insured to deliver it, she realizes that the health of the applicant has deteriorated significantly since the application was taken. The producer should: ADeliver the policy as it was issued BObtain the premium from the prospect and send it to the company immediately CRefuse to deliver the policy or to accept any premium offered DRate the policy and obtain any additional premium required

C

In the formation of a Life insurance contract, the special significance of a Conditional Receipt is that it: AIs given by the producer only to applicants who fully prepay all scheduled premiums in advance of policy issue BGuarantees the applicant that a policy will be issued in the amount applied for in the application CIs intended to provide coverage on a date earlier than the date of the issuance of the policy DServes as proof that the producer has determined the applicant to be fully insurable for coverage by the insurance company

C

A producer submits a completed and signed application to the underwriter along with the first premium check. After checking the results of the physical exam, the underwriter issues a 'rated' policy. Which of the following will not be required: AAn explanation of the rating or premium surcharge to the client BAdditional premium to be collected at policy delivery CA statement that the applicant's health has not changed since the physical exam DA new completed and signed application

D

If an existing client of a producer wants to buy another Life insurance policy, the producer should: ASubmit an unsigned application to the insurer referring to existing underwriting information BComplete and sign the application on behalf of the customer CAdvise the customer that no physical exam is required since he is an existing client DHave the customer come in and complete and sign a new application

D

Insurable interest must exist: AAt the time of loss BContinuously CIn order to be named as beneficiary DAt the time of application

D

When giving a client a conditional receipt, which of the following is true? ACoverage begins as of date of application BIn order for coverage to begin the applicant must pay all premiums CThe coverage will begin at earliest as of the date of application or when the client passes a physical, whichever is later DYou never collect a premium until you deliver the policy

C

Statements made by an applicant for a Life insurance policy that are supposed to be true are referred to as: AWarranties BRepresentations CFacts DInformation

B

Which federal law governs consumer investigative reports: APrivacy Protection Act BFair Credit Reporting Act CEmployee Retirement Income Security Act DTelephone Communication Protection Act

B

With proper notice and authorization, insurers may report underwriting information that an applicant lists on their application for Life insurance to the: AState insurance department BMedical Information Bureau (MIB) CAnyone who requests it DFair Credit Reporting Association

B

If an applicant for a Life insurance policy is found to be a substandard risk, the insurance company is most likely to: ARequire a yearly medical exam BLower its insurability standards CCharge an extra premium DRefuse to issue the policy

C