Chapter 1 Quiz

An investor buys life life policy on an elderly person in order to sell it for a life settlement. This is an example of

A Stoli policy

Which of the following information About the applicant is not included in the general information section of the application for insurance

Medical background

Upon policy delivery, the producer may be required to obtain any of the following except

Signed waiver of premium

What is the purpose of a conditional receipt

It is intended to provide coverage on a date prior to the policy issue

If I consumer quests additional information concerning it in investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

What is the timeframe for filing relevant suspicious activity reports

Within 30 days of initial discovery

When would a misrepresentation on the insurance application be considered fraud

If it is intentional and material

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

As of the Application Date

Another name for a substandard risk classification is

Rated

Well then how many days of requesting an investigative consumer report must ensure notify the consumer in route writing that the report will be obtained?

3 days

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

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

The federal fair credit reporting act

Regulates consumer reports