Ch 2 Life/Health

The insurer must keep receipt of policy delivery for how long if delivered by mail

2 years

Key person insurance is funded by what type of life insurance

Any

What form of life insurance is used to fund a buy-sell agreement

Any

What is used to obtain specific medical details about a condition shown in the application

Attending Physician Statement

Generic consumer publication that explains life insurance in general terms

Buyer's Guide

What is combined with premiums to spread the operating costs of a business to all insureds

Expense loading

The factor added to the net premium to cover the costs of the insurer in obtaining and maintaining the business is called

Expenses

Business uses of life insurance include

Funding against financial loss caused by death of key employee, Funding business continuation agreements, and compensating executives

Mortality - Interest + Expense =

Gross premium

Report that includes the insured's financial status, hobbies, and habits

Inspection Report

All advertisements are the responsibility of the

Insurer

Who makes up the Medical Information Bureau (MIB)

Insurers

What is the best option for the surviving spouse to put their child through daycare

Life insurance proceeds

Attempting to determine how much insurance an individual would require based on their financial objectives is known as

Needs Approach

If the company acknowledges receipt of the premium with a conditional receipt the policy is in effect

On the date of the application or the date of the medical exam (whichever is later)

Which clause stipulates that life insurance premiums can be paid in advance of policy issuance

Payment of Premium Clause

Which risk results in the highest premium

Substandard risk

If the applicant for life insurance is different from the person to be insured and underwriter is concerned about

Whether an insurable interest exists between the individuals

Which type of insurance policy would perform the function of cash accumulation

Whole life

A producer agent does not have to

disclose commissions earned from sale of policy

Use of life insurance as an Executive Bonus is owned by

employee

If an insurer invests the money it receives from premiums paid by its insureds, the interest earned on the investments is used to

lower premiums

If applicant is given a conditional receipt and is found to be insurable as a standard risk but dies before policy is issued then

the company will issue the policy anyway and pay face value to beneficiary

The earliest a policy can go into effect is

when the application is signed and the check is given to the agent