Insurance Licensing

A

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom? A.) The producer B.) The beneficiary of the applicant C.) The insurance company D.) The applicant

C

An applicant who receives a preferred risk classification qualifies for.. A.) Higher premiums than a person who receives a sub-standard risk. B.) Higher premium than a person who receives a standard risk. C.) Lower premiums than a person who receives a standard risk. D.) Dividends payable for lack of claims.

D

An applicant signs an application for a $25,000 Life insurance policy, pays the initial premium , and receives a conditional receipt. If the applicant dies the following day, which of the following is TRUE? A) The premium would be returned to the insured/s estate because the policy was not insured.. B) The death claim will be rejected, C) the application will be voided. D) The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy

2500

What is the maximum penalty for habitual willful noncompliance w the fair credit reporting act

B

Which of the following is a risk classification used by underwriters for life insurance? A.)Excellent B.)Standard C.)Poor D.)Normal

C

AN insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe? A.) Adhesion B.) Conditional C.) Aleatory D.) Good health

C

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as.. A)Aleatory contracts B) Binding Contracts C) Contracts of adhesion D) Unilateral contracts

A

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it? A.) Unilateral B.) Adhesion C.) Conditional D.) A legal (But unethical) Contract

A

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT... A.) Signed waiver premium B.) Statement of good health C.) Payment of premium D.) Delivery receipt

C

A producer agent must do all of the following when delivering a new policy to the insured EXCEPT... A.) Collect any premium due B.) Explain the rating procedures if the policy is rated differently than applied for. C.) Disclose commissions earned from the sale of policy D.)Explain the policy provisions, riders, and exclusions..

B

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit... A) Any federal report B) Consumer Report C) Inspection Report D) Agents report

C

Which of the following will be included in a policy summary? A) Comparisons with similar policies B) Primary and secondary beneficiary designations C) Premium amounts and surrender values D) Copies of illustrations and application

A

The full premium was submitted with the application for life insurance, and the policy was issued two week later as requested. When does the policy coverage become effective? A.) As of the application date B.) As of the policy delivery date C.) As of the first of the month after the policy issue D.) As of the policy issue date.

B

All of the following are duties and responsibilities of producers at the time of application except.... A.) Check to make sure that there are no unanswered questions on the application. B.)Change any incorrect statement on the application by personally initialing next to the correct statement. C.)Explain the nature and type of any receipt the producer is giving to the applicant. D.) Probe beyond the stated questions if the producer feels the applicant is misrepresenting or concealing information.

C

What is the purpose of a conditional receipt? A.) It serves as proof that the applicant has been determined insurable. B.) It is given only to applicants who fully prepay the premium. C.) It is intended to provide coverage on a date prior to the policy issue. D.) It guarantees that a policy will be issued in the amount applied for.