Chapter 7: Underwriting & Policy Issue

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met.

A signed good health statement may be requested by a life producer at the time of?

Policy delivery

In what situation could an insurance policy's coverage be modified?

Applicant is a substandard risk.

An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?

Good health statement

After an insurance application has been originated, the producer normally

Is the major personal contact to the insured.

An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true?

Applicant has a right to receive a copy of the report.

An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT?

Living in a rural area.

Where is the difference between a standard risk and a substandard risk reflected?

Premium charges

The reason for backdating a policy is

To obtain a premium rate based on an earlier age.

The principal source of information concerning an applicants identity, age, and martial status is found in the?

Completed application