Part 1 Chapter 6 - Insurance Underwriting and Policy Issue

When a policyholder 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

An incomplete life insurance application submitted to an insurer will result in which of theses actions?

Application will be returned to the writing agent

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

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

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

Gender

What is being delivered during a policy delivery?

Insurance contract to the proposed insured

The underwriting process involves all of these, EXCEPT for... a.) credit report b.) application c.) risk classification d.) policy load

Policy loan

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

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? a.) Risk Classification b.) Insurable Interest c.) Warranty Review d.) Inspection Report

a.) Risk Classification

Which of these actions should a producer take when submitting an insurance application to an insurer? a.) arrange for a copy of the Attending Physicians Statement (APS) to be sent to the producer b.) Inform the insurer of relevant information not included on the application c.) Issue a binding receipt to applicant if no initial premium is submitted d.) disclose to the applicant the amount of commissions to be earned on this transaction.

b.) inform insuer of relevant information not included on the application

Who is NOT required to sign a life insurance application?

beneficiary

Which of these factors do NOT play a role in the underwriting of a life insurance policy? a.) credit status b.) occupation c.) marital status d.) avovations

c.) marital stauts

What is the purpose of the USA Patriot Act?

detect and deter terrorism

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and...

the initial premium

The reason for backdating a policy is...

to obtain a premium rate based on an earlier age