XCEL Chapter 7

How many months can a life insurance policy normally be backdated from the date of application? A. 3 B. 6 C. 9 D. 12

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Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? A. A waiver of premium B. A replacement form C. A good health statement D. An exclusion

A replacement form

Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? A. Standard risk B. Preferred risk C. Unacceptable risk D. Substandard risk

Substandard risk

In which of the following relationships would there NOT be an insurable interest? A. Parent to child B. Business partner to business partner C. Brother to sister D. Business owner to business customer

Business owner to business customer

Which of the following would be considered an underwriting duty of an agent? A. Requesting medical information from the Medical Information Bureau (MIB) B. Completing all applications and collecting initial premiums C. Accepting or declining an application D. Assigning a risk classification

Completing all applications and collecting initial premiums

Which of these is NOT considered to be a risk factor in life insurance underwriting? A. Number of children B. Health history C. Hobbies D. Occupation

Number of children

An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT? A. providing disclosure information to the applicant B. collecting initial premium C. policy delivery D. providing commission information to the applicant

Providing commission information to the applicant

What happens when an insurance policy is backdated? A. The policy's elimination period is waived B. The time frame for reinstating a lapsed policy is extended C. The policy's probation period is earlier than the present D. The policy's effective date is earlier than the present

The policy's effective date is earlier than the present

A field underwriter's main task is? A. assign a risk classification to the insured B. report medical information to the Medical Information Bureau (MIB) C. to ensure an applicant's medical information is accurate and complete D. to approve or decline an applicant

To ensure an applicant's medical information is accurate and complete

When does a life insurance policy typically become effective? A. When the policy is issued B. When initial premium is collected and policy is issued C. When the application is completed and signed D. When the completed application is signed and initial premium is collected

When initial premium is collected and policy is issued

Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT? A. the producer B. the insured C. the policyowner D. the beneficiary

the beneficiary

What is the purpose of the Medical Information Bureau (MIB)? A. To accept or decline insurance applicants B. To set the premium rates for insurers C. To help underwriters evaluate risk D. To perform physical examinations on applicants

To help underwriters evaluate risk

A change in an insurance application requires? A. an initial made by the producer B. an initial made by the applicant C. approval by the insurer D. submitting a new application

an initial made by the applicant

All of these are typically sources of underwriting information for life or health insurance EXCEPT? A. Consumer reports B. Medical Information Bureau (MIB) reports C. Disclosure authorization response D. Attending physician's statement (APS)

Disclosure authorization response

The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement? A. An agent establishes insurable interest B. An individual does not have insurable interest on his or her own life C. Insurable interest only pertains to business arrangements D. Insurable interest can be based on the love and affection of individuals related by blood or law

Insurable interest can be based on the love and affection of individuals related by blood or law

An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of? A. rebating B. coercion C. fraud D. twisting

fraud

What is involved when a life insurance policy has been backdated? A. Setting a policy's effective date prior to a preexisting condition B. Redating a policy after it has been issued C. Reinstating a lapsed policy D. Making the policy effective on an earlier date than the present

Making the policy effective on an earlier date than the present

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has? A. a higher face amount than average B. a better ability to pay premiums over a long period of time C. worse than average mortality or morbidity experience D. better than average mortality or morbidity experience

better than average mortality or morbidity experience