Alabama life insurance ch.6

A representation

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as:

A premium that is higher than a normal risk

A substandard or special class risk typically results in:

substandard

The highest premium payment would be charged to which risk classification?

Special class risks

What kind of risks are amateur pilots classified as?

Inspection report

Information obtained from a phone conversation to the proposed insured can be found in which reports?

A) application will be returned to the writing agent

An incomplete life insurance application submitted to an insurer will result in which of these actions? A) application will be returned to the writing agent B) application will be approved with restrictions C) application will be pending until an MIB report is sent to the insurer D) application will be automatically declined

Applicant

Any changes made on an insurance application requires the initials of whom?

January 26th

On January 8th, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14th and issued the policy January 15th. The producer delivered the policy on January 26th and collected the first premium. When did the coverage become effective?

Set up a meeting with the applicant to answer the remaining questions

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Conditional Receipt

Pat applies for insurance, pays the initial premium, and receives a document from the agent. This document indicates that if the policy is issued, coverage begins on the date of the document. This document is called a(n):

Conditional Receipt

Rodney applies for an insurance policy and pays the first premium. The receipt given for the first premium is called a(n):

C) an issued policy can never be changed by the producer

Which if the following statements concerning a life insurance policy is TRUE? A) an issued policy can never be changed B) an issued policy can be changed by an authorized company officer without the policyowner knowing C) an issued policy can never be changed by the producer D) a policy can be changed by the producer if the policyowner requests the change in writing

A) education level

Which of the following is NOT a factor typically used by insurers to classify risks? A) education level B) occupation C) age D) lifestyle

D) all of the above

Which of the statements is true regarding the Medical Information Bureau (MIB)? A) reports given to member companies contain info regarding the insurability of insurance applicants B) the proposed insured must give authorization before information can be given to member companies C) the MIB is a nonprofit agency which aids in underwriting insurance policies D) all of the above

D) when attached to the policy, the application becomes part of the insurance clause

Which of these is not a reason the insurance application is important? A) the application helps identify the applicant B) the application contains statements that become the basis for approving the policy C) when attached to the policy, the application becomes part of the contract D) when attached to the policy, the application becomes part of the insurance clause