Application, Underwriting, and Delivering the Policy
If an agent fails to obtain an applicant's signature on the application, the agent must a. Return the application to the applicant for a signature b. Sign the application for the applicant c. Sign the application, stating it was by the agent d. Send the application the insurer with a note explaining the absence of signature
a
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process? a. Insurance index b. Policy Summary c. Illustrations d. Buyer's Guide
d
Which of the following types of risk will result in the highest premium? a. Substandard Risk b. Standard Risk c. Preferred Risk d. All risks pay equal premiums
a
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit? a. Agent's report b. Any federal report c. Consumer report d. Inspection report
c
Which of the following will be included in a policy summary? a. Premium amounts and surrender values b. Copies of illustrations and application c. Comparisons with similar policies d. Primary and secondary beneficiary designations
a
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe? a. Aleatory b. Unilateral c. Conditional d. Contingent
c
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT: a. Note on the application the reason for the change b. Destroy the application and complete a new one. c. Erase the incorrect answer and record the correct answer d. Draw a line through the first answer, record the correct answer, and have the applicant initial the change.
c
Which is generally true regarding insureds who have been classified as preferred risks? a. They can borrow higher amounts off of their policies b. They can decide when to pay their monthly premiums c. They keep a higher percentage of any interest eanred on their polices d. Their premiums are lower.
d
The Federal Fair Credit Reporting Act a. Regulates consumer reports b. Protects customer privacy c. Regulates telemarketing d. Prevents money laundering
a
Representations are written or oral statements made by the applicant that are a. Immaterial to the actual acceptability of the insurance contract b. Considered true to the best of the applicant's knowledge c. Guaranteed to be true d. Found to be false after further investigation
b