Chapter 2: Life Insurance Basics
An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,
The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy
Which of the following best describes gross annual premium
Net premium plus expenses
The purpose of the Life and Health Insurance Guaranty Association is to
Help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company
Which of the following is usually true of a participating life insurance policy?
It pays dividends to policyowners
All of the following are characteristics of group life insurance EXCEPT
Premiums are determined by the age, sex, and occupation of each INDIVIDUAL(FALSE PART) certificate holder
An insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?
Present the insured with a Disclosure Authorization Notice
What is the main purpose of the regulation on life insurance policy illustrations?
To help customers make educated decisions in buying life insurance
An underwriter is reviewing the medical questions in the application and needs further information due to a medical situation the applicant had in the past. What will the underwriter require?
Attending Physician Statement
