Chapter Quiz (1)

An insurance contract must contain all of the following to be considered legally binding except?

Beneficiary's Consent

All of the following duties & responsibilities of a producer at the time of an application except?

Change any incorrect statement on the application by personally initialing next to the corrected statement

When an insurer makes truthful statements on the application for insurance & pays the required premium, it is known as which of the following?

Consideration

Which of the following includes information regarding a person's credit, character, reputation, & habits?

Consumer Report

Which of the following best describes the MIB?

It is a nonprofit organization that maintains underwriting information on applicants for life & health insurance.

What is the purpose of a conditional receipt?

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

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

Which of the following best details the underwriting process for life insurance?

Selection, classification, & rating risks

Which of the following statements is correct about a standard risk classification in the same age group & similar lifestyles?

Standard risk is representative of the majority of people

Which of the following would qualify as a competent party in an insurance contract?

The applicant has a prior felony conviction

An applicant signs an applicant ik for $25000 life insurance policy, the initial premium, & receives a conditional receipt. If the applicant does the following day which of the following is true?

The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy

Whose responsibility is it to make certain application for insurance is filled out completely & correctly?

The producer

What is the purpose of a buyer's guide?

To allow the consumer to compare the costs of different policies

An agent & an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health

If a policy includes a free-look period of at least 10 days, the buyers guide may be delivered to the applicant no later?

With the policy