QUIZ 1

Respond to the consumer's complaint

Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must...

His intended to provided coverage on a date earlier than the date of the issuance of the policy

What is the purpose of a conditional receipt?

When the application is signed and a check is given to the agent

When is the earliest a policy may go into effect?

It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance

which of the following best describe the MIB

Pay the policy proceeds only if it would have issued the policy.

a prospective insured receives a conditional receipt but dies before the policy is issued the insurer will

Change any incorrect statement on the application by personally initialing next to the corrected statement

all of the following are duties and responsibilities of procedures at the time of application EXCEPT

Education

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

conditions

because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following element EXCEPT

Change a higher premium

if an applicant for a life insurance policy if found to be a substandard risk , the insurance company is most likely to

ancestry

if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practice has been provided, the report may contain all of the following information EXCEPT

whether an insurable interest exist between the individuals

if applicant for a life insurance policy and person to be insured by the policy are two different people the underwriter would be concerned about

Applicant's past income

in classifying a risk ,the home office underwriting department will look at all of the following EXCEPT

loss

insurance is a contract by which one seek to protect another from

Premium Receipt

most agents try to collect the initial premium for submission with the application. when an agent collects the initial premium from the applicant, the agent should issue the applicant a

insurance

what do individual use to transfer their risk of loss to a larger group?

makes an enforceable promise one-sided: only one party makes an enforceable promise

what is a definition of a unilateral contracts?

It will be higher because the applicant is a substandard risk

in the underwriting process it was determined that the applicant for life insurance is in poor health and has some dangerous habits

when an insurer's underwriter approves coverage

In forming an insurance contract, when does acceptance usually occur?

The application given to a prospective insured

Which of the following is NOT the consideration in a policy?

The date of medical exam

An individual applied for an insurance policy and paid the initial 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?

Consideration

An insurer neglects to pay a legitimate claim that is covered under the term of the policy. Which of the following insurance principles has the insurer violated?

regulates consumer reports

Federal Fair Credit Reporting Act

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

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

The customer's associates, friend, and neighbors provide the report's data

In comparison to consumer report which of the following describe a unique characteristic of investigative consumer reports?

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

The Producer

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?

Conditional

when both parties to a contract must perform certain duties and follow rules of contract enforceable, the contract is

contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as

If it is intentional and material

When would a misrepresentation on the insurance application be considered fraud?

Selection, classification, and rating of risks

Which of the following best details the underwriting process for life insurance?

consideration

something of value exchanged for something else of value

Premium amounts and surrender values

Which of the following will be included in a policy summary

Disclose commission earned from the sale of the policy

A producer agent must do all of the following when delivering a new policy to the insured Except

to allow the consumer to compare the costs of different policies

what is the purpose of the buyer's guide?

consideration

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

Unilateral

Insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this described?

at the time of application

when must insurable interest exist in a life insurance policy?

return the application to the applicant for completion

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

to help the insured understand all aspect of the contract

why should the producer personally deliver the policy when the first premium has already been paid?