Completing the Application, Underwriting, and Delivering the Policy

All of the following may have an insurable interest in the insured EXCEPT A. The spouse B. Insured's children C. The employer D. Insured's best friend

Insured's best friend

A substandard risk is compared to a standard risk would pay A. A lower premium B. A higher premium C. The same premium D. A premium and surcharge

A higher premium

Which of the following would be the main source of underwriting information used by the company in the risk selection process? A. Application B. Warranty C. MIB report D. Attending physician's statement

Application

Which method of dealing with risk is applied when insurance is purchased? A. Avoidance B. Reduction C. Transfer D. Replacement

Transfer

Insurance is a contract by which one seeks to protect another from A. Loss B. Exposure C. Uncertainty D. Hazards

Loss

The medical information bureau is A. A government entity that reviews medical information B. An association of physicians who write insurance rules C. A directory of paramedical services and providers D. A source of medical information to alert insurers to adverse medical history

A source of medical information to alert insurers to adverse medical history

Which of the following is considered a field underwriter? A. An agent B. An insurer C. An adjuster D. A company underwriter

An agent

Representations are statements made by the applicant that are A. Considered true to be the best of the applicant's knowledge B. Guaranteed to be true C. Found to false after further investigation D. Immaterial to the actual acceptability of the insurance contract

Considered true to the best of the applicant's knowledge

Which of the following includes information regarding a person's credit, character, reputation, and habits? A. Agent's report B. MIB report C. Consumer report D. Fair credit report

Consumer report

If an agent fails to obtain an applicant's signature on the insurance application, the agent A. Return the application to the applicant for signature B. Send the application to the insurer with a note explaining the absence of signature C. Sign the application for the applicant D. Sign the application as an agent, stating that all answers have been verified

Return the application to the applicant for signature

What is the main responsibility of a company's underwriting unit? A. Controlling business written by new agents B. Marketing and solicitation of insurance C. Issuing policies D. Risk selection and classification

Risk selection and classification

When must insurable interest exist in life insurance? A. Death of the insured B. Policy delivery date C. Time of claim D. Application or issue dat

Application or issue date

An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin? A. When the policy is received B. After the free-look period C. On the date of the application D. On the date the policy is issued

On the date of the application

If no receipt is issued at the time of application, a statement of good health is usually required at the time of A. Application B. Policy delivery C. Policy renewal D. The paramedic's report

Policy delivery

Which of the following documents describes specific information about policy provisions and benefits? A. A buyer's guide B. Policy illustrations C. Agent's report D. Policy summary

Policy summary