Life and health underwriting
What is the purpose of the Fair Credit Reporting Act?
B) It requires consumer report agencies to adopt reasonable procedures when exchanging credit information.
During the underwriting process, an insurer may do all of the following EXCEPT O A) order a credit report O B) verify the applicant's military records, if any O C) order a consumer report to provide details on the applicant's reputation, character, and habits O D) contact the Medical Information Bureau to check on the applicant's medical history
B) verify the applicant's military records, if any
Which of the following is NOT found in Part I of the application? A) The name and address of the insured's current physician O B) The insured's occupation and business address C) The name and address of the insured O D) The name of the beneficiary
A) The name and address of the insured's current physician
Which of the following statements regarding life insurance applications is NOT correct? A) Completed applications contain personal information, which must be protected. O B) The application may not be altered without the change being initialed by the applicant. C) Statements made by the applicant on the application are considered to be warranties. OD) The application must be carefully reviewed by the agent for completeness.
C) Statements made by the applicant on the application are considered to be warranties.
For situations where no initial premium was paid when the application was taken, when delivering that policy the agent is generally required to do all of the following EXCEPT A) collect any premium due B) explain the policy, its provisions, and any riders, exclusions, or ratings involved C) obtain a statement of good health from the insured D) present the insured with a conditional receipt
D) present the insured with a conditional receipt
Which of the following acts of legislation requires fair and accurate reporting of a consumer's buying and bill-paying history?
O A) Fair Credit Reporting Act
If a life insurance applicant is given a binding receipt, when does her coverage become effective?
O B) On the date the receipt is given
All of the following can directily affect the amount of premium Individual insured pays EXCEPT O A) occupation O B) marital status O C) sex D) age
O B) marital status
When is a conditional recelpt normally given to an applicant? O A) At the initial meeting O B) At pollicy delivery O C) When the initial premium is paid O D) When coverage first becomes avallable
O C) When the initial premium is paid
When applicable, all of the following forms require an applicant's signature EXCEPT O A) the authorization form O B) the application O C) an aviation questionnaire O D) an agent's report
O D) an agent's report
Which of the following criteria may be used when determining the premium rate for an Insurance applicant? O A) Blindness O B) Religion O C) Age O D) Race
may be O C) Age
The overall purpose of the USA PATRIOT Act is to
B) deter terrorist activity
If there are changes to an insurance application due to an eror in information, who must initial the corrections?
O A) The applicant
James signed an application for a $50,000 life insurance policy and paid the first premium on October 1. The agent issued a conditional receipt. A week later, James took the required medical examination and was found to be insurable. If he dies before the insurer approves the application,
the coverake will be retroactively effective
A consumer may make a written request for complete disclosure of the nature and scope of an investigative report regarding her credit history. The disclosure must be made within
make a written O B) 5 days
All of the following are found in the first part of the application EXCEPT O A) date of birth O B) Social Security number O C) hobbles O D) name
O C) hobbles
An Insurer will use all of the following to determine if a person should be issued a policy EXCEPT O A) information stored in the Medical Information Bureau O B) the application for insurance O C) the applicant's work history O D) a medical report from a qualified professional
O C) the applicant's work history
Which of the following acts helps ensure confidential, fair, and accurate reporting of consumer information?
O D) Fair Credit Reporting Act
All of the following are forms of unfair discrimination EXCEPT A) refusing o service the policy needs of a person because of where he lives O B) charging one person a higher premium than someone else of the same age and sex because of a higher risk represented by that person O C) charging one person a higher premium than another person of equal risk to the company O D) refusing to sell a policy to someone because of his race or religion
policy needs of a person O B) charging one person a higher premium than someone else of the same age and sex because of a higher risk represented by that
An investigative consumer report is also called
O A) an inspection report
If an application for insurance is sent to the insurer without the first premium, but the premium is paid when the policy is delivered, the effective date of coverage is
O A) the date the policy was delivered
Which of the following statements pertaining to the Medical Information Bureau (MIB) is NOT correct? O A) The MIB is organized and supported by private hospitals. O B) Applicants for life insurance must be informed in writing that the insurer may make a report on their health to the MIB. C) The purpose of the MIB is to help prevent fraud and to serve as a reliable source of important medical information about insurance applicants. O D) Applicants must sign authorization forms for information from the MIB files to be given to a member company.
O A) The MIB is organized and supported by private hospitals.
What are life insurance transactions that are marketed to senior citizens and a possible method of fraud called?
O B) Stranger-owned life insurance (STOLI) or investor-owned life insurance (IOLI)
Underwriting is a process of
O B) selecting, classifying, and rating risks
All of the following are considered suspicious activities EXCEPT O A) reluctance to provide identification O B) requests to have surrender proceeds paid to a party not clearly related to the purchaser O C) receipt of cash payments in excess of $5,000 D) greater interest in termination rather than performance features of a product
O C) receipt of cash payments in excess of $5,000 ($10,000 not $5,000)
With regard to substandard life insurance risks, which of the following statements is CORRECT? O A) To provide coverage to substandard risks, Insurers are allowed to charge an extra premium; however, they cannot alter benefit periods or walting periods. O B) Because of stringent underwriting requirements, most life insurance applicants are classified as substandard risks. O C) An applicant can be deemed a substandard risk based on physical condition only: no other criteria may be considered. D) When the applicant represents a substandard risk, the policy may be modified to reduce the benefits provided.
D) When the applicant represents a substandard risk, the policy may be modified to reduce the benefits provided.
Each application for life insurance requires the signature of all of the following EXCEPT O A) the agent O B) the beneficiary O C) the proposed insured O D) the policyowner, if different from the insured
O B) the beneficiary
Anna applied for a $2 million life insurance policy and paid the first premium but was later found to be uninsurable. The agent gave her a receipt that guarantees coverage until the insurer formally rejects her application. Which type of receipt did Anna receive? A) Binding B) Conditional C) Approval D) Insurability
A) Binding
What is the basic source of information for life insurance underwriting and policy issue? O A) consumer reports B) Physician reports O C) The Medical Information Bureau D) The application
D) The application
If the first premium was not paid at the time of application, what must the producer also collect?
O A) A signed statement of good health
What is stranger-owned life insurance?
O B) A life insurance transaction where investors persuade seniors to take out new life insurance policies, naming the investor as the beneficiary
All of the following are sources of insurability information about life insurance applicants EXCEPT O A) the application O B) Medical Information Bureau reports C) inspection reports O D) Social Security reports
O D) Social Security reports
If a premium payment has not been given with the application, the policy becomes effective only when the producer delivers the policy and
explains its provisions and obtains the initial premium and a signed statement of continued good health
A Notice to Applicant must be issued to the consumer no later than A) 3 days after the report was requested B) 3 days after paying the initial premium O C) 3 days after the policy has been issued O D) 3 days after completing the application
A) 3 days after the report was requested
AGC Publishing applied for key-person life insurance on its chief executive officer. Which of the following parties must sign the application?
D) The CEO, another officer of AGC, and the agent handling the application
Which of the following statements pertaining to a life insurance policy application is CORRECT? O A) An agent must be very specific when listing an applicant's occupation on an application. B) If an applicant's age is shown erroneously on a life insurance application as 28 instead of 29, this could result in a premium quote that is higher than it should be. C) A submitted application is considered a valid offer even if the premium is not collected. D) The applicant's signature is required on an application, but the agent's signature is not.
O A) An agent must be very specific when listing an applicant's occupation on an application.
Underwriting techniques commonly used by insurers in issuing policies to applicants who do not measure up to a standard rating include all of the following EXCEPT O A) averaging total risks pending O B) limiting the type of policy O C) charging an extra premium O D) attaching an exclusion rider or walver to a policy
O A) averaging total risks pending
Which of the following statements pertaining to inspection reports and credit reports on life insurance applicants is NOT correct? A) Inspection reports only require consumer notification when they are conducted. B) Information contained in inspection reports is usually obtained through interviews with employers, neighbors, and associates of the proposed insured. C) Applicants with unfavorable credit ratings, a history of moral hazard, or both are poor prospects for life insurance. D) Consumers must be notified and give their consent to an inspection report.
O A) Inspection reports only require consumer notification when they are conducted.
Which of the following statements best defines why an applicant would want to backdate an insurance application? O A) To have the policy's premlum based on the insured's age at the earlier date B) To move the policy issue date ahead of a disqualifying event, such as a diagnosis of a terminal disease O c) To create a larger cash value upon policy issue D) To take advantage of higher interest rates in place at the earlier date
O A) To have the policy's premlum based on the insured's age at the earlier date
All of the following may be done to determine insurability in regard to AIDS EXCEPT O A) asking questions regarding the applicant's sexual orientation O B) asking questions regarding whether the applicant has or has had AIDS O C) sharing an AIDS blood test result with persons designated by the applicant O D) conducting a blood test for AIDS with the applicant's consent
O A) asking questions regarding the applicant's sexual orientation
Which of the following staternents regarding the delivery of a life insurance policy is NOT correct? O A) must have the application signed by the policyowner. O B) Agents will usually get a signed receipt from the policyowner. O C) An agent has an ethical responsibility to explain the policy, including any riders, exclusions, or other details of the policy, to the policyholder. D) During the delivery appointment, the agent should review the policy with the policyholder.
O A) must have the application signed by the policyowner.
Penalties for violating the Falr Credit Reporting Act include O A) fines up to $10,000 O B) fines, actual damages suffered by the consumer, punitive damages, and reasonable attorney's fees O C) imprisonment for 3 years O D) fines up to $12,000
O B) fines, actual damages suffered by the consumer, punitive damages, and reasonable attorney's fees
Which of the following statements regarding policy delivery is NOT true? O A) The insurer may mail the policy to the policyowner in some states. O B) The agent is often required to obtain a dated receipt from the policyowner to verify delivery. O C) The agent should explain the policy provisions, riders, and exclusions to the policyowner. O D) The agent may hold on to the policy for safekeeping without showing it to the policyowner.
O D) The agent may hold on to the policy for safekeeping without showing it to the policyowner.
ERISA requires that certain benefit and insurance plan information be made available to all of the following EXCEPT O A) participants O B) the state legislature O C) the Internal Revenue Service O D) the Department of Labor
O B) the state legislature
Jia is applying for individual medical insurance coverage. All of the following factors will adversely affect her ability to obtain coverage at a reasonable premium EXCEPT A) being 55 years old O B) being an avid scuba diver O c) working at a desk every day O D) a family history of heart disease
O c) working at a desk every day
An applicant for health insurance completes the application and satisfies all of the conditions of the conditional receipt. If the policy is eventualy issued as applied for, coverage takes effect
O A) just as if the policy had already been issued
Which of the following statements pertaining to inspection reports on life insurance applicants is NOT correct? O A) They help to determine the insurability of applicants. O B) They provide information obtained principally from law enforcement officials. O C) They usually are obtained from national investigative agencies or firms. O D) They generally are requested on applicants who apply for large amounts of life insurance.
O B) They provide information obtained principally from law enforcement officials.
Which section of the application should contain a record of any injuries the applicant may have suffered?
O C) The medical section
Which of the following staternents regarding a conditional receipt is CORRECT? O A) It is given when the application is completed. O B) It is given only if the initial premium has been submitted with the signed application. O C) It is given pending acceptance by the applicant of additional riders. O D) It is given at the time of policy delivery.
O B) It is given only if the initial premium has been submitted with the signed application.
Which of the following is an accurate statement for a producer to make regarding underwriting? O A) The primary source of information used in underwriting will be the application. O B) The Medical Information Bureau (MIB) will contact the applicant for additional information. O C) The applicant must provide a list of the sources and give permission to contact them. O D) A consumer report must be requested.
O A) The primary source of information used in underwriting will be the application.
An agent must notify the applicant that all of the following sources will be used to assess the applicant EXCEPT O A) personal references O B) a credit report O C) the application O D) a Medical Information Bureau report
O A) personal references
Why do most states ban STOLI transactions?
O B) Because the investor, who is named as the beneficiary, does not have an insurable interest in the insured
Which of the following statements pertaining to the Fair Credit Reporting Act is NOT correct? O A) The Fair Credit Reporting Act does not apply to insurance companies who use their own staffs to investigate an applicant for insurance. B B) The Fair Credit Reporting Act is a state law that helps to ensure accurate reporting of information about consumers. C) Peg's application for life insurance is rejected because of an unfavorable consumer report. She has a right to know what information the reporting agency has and can insist that any errors in the data be corrected. O D) A life insurance company obtains a consumer report on Burl, an applicant, without advising him of its intended action. The company has violated the Fair Credit Reporting Act.
B) The Fair Credit Reporting Act is a state law that helps to ensure accurate reporting of information about consumers.
Sam applied for a term life insurance policy, pald the initial premium, and received a conditional receipt on December 1. If the insurer issued the policy on January 1 and the agent delivered the policy on January 3, the policy effective date is
O B) December 1
Which of the following statements pertaining to a temporary insurance agreement is CORRECT? O A) It provides term insurance protection until the policy is converted to permanent insurance. O C) It provides protection agalnst death by accident, but not death from natural causes. O B) It provides temporary coverage until an application is rejected or the policy is issued O D) Coverage begins when the application is signed and the premium is paid, assuming any required medical exam is scheduled within 3 days.
O B) It provides temporary coverage until an application is rejected or the policy is issued
Which of the following would be an authorized method of handling an initial premlum payment? A) Assure the applicant that a written receipt will be provided at policy delivery O O B) Provide the applicant with a signed receipt of the appropriate type (binding or conditional) O O C) Advise the applicant that a written receipt will be sent from the insurer O O D) Tell the applicant that written receipts are only required for cash transactions
O B) Provide the applicant with a signed receipt of the appropriate type (binding or conditional)
If a medical report is required on an applicant, it is completed by
B) a paramedic or examining physician
What is the most common approach for rating life insurance applicants who are determined to be substandard risks? O A) Issuing a policy in the amount applied for, but reducing the amount paid out as a death benefit. O B) Issuing a policy in the amount applied for, with a higher than standard premium. c) Issuing a policy of less than the amount applied for, with a lower than standard premlum. O D) Issuing a policy in the amount applied for, but crediting its values with lower interest rates.
O B) Issuing a policy in the amount applied for, with a higher than standard premium.
An attending physician's statement (APS) requested by the underwriting department will normally contain all of the following applicant information EXCEPT O A) copies of the applicant's medical records with the physician O B) a Medical Information Bureau report C) the applicant's current medical condition as known to the physician O D) the applicant's medical history and treatment as known to the physician
O B) a Medical Information Bureau report
Most state laws allow life insurance policies to be backdated up to A) 9 months B) 3 months O C) 6 months D) 1 month
O C) 6 months
Which of the following would NOT constitute unfair discrimination in insurance underwriting? O A) Brandon has his policy rated because of his religion. O B) Thomas is refused a policy because he was born in a country on a terror watch list. O C) Artem is declined for insurance because his residence is considered to be in a dangerous neighborhood. O D) Maria s charged a higher premium based on her poor health.
O D) Maria s charged a higher premium based on her poor health.
Lawrence signed an application for a life insurance policy on September 2 and Initial premium and received a conditional receipt at the time of application. The policy was took a required medical exam on September 4. He gave the agent a check for the issued as originally applied for and the agent delivered the policy to him on October 15. The earliest effective date for Lawrence's insurance policy would be
O D) September 4
Which of the following statements regarding how to fix a mistake in an insurance application is NOT correct? O A) If the insurer discovers a mistake, it usually returns the application to the agent who, with the applicant, corrects the application. O B) if the agent fixes the mistake in the application, the applicant must initial the correction. O C) If the insurer discovers an iIncorrect application before the policy is issued, the insurer may cancel the contract. O D) Under no circumstances may an agent correct information on an insurance application once it has been completed by the applicant.
O D) Under no circumstances may an agent correct information on an insurance application once it has been completed by the applicant.
ERISA was enacted to:
O D) protect the interests of participants in employee benefit and health plans
All of the following factors influence an applicant's mortality EXCEPT A) dangerous hobby B) personal habits C) credit report D) hazardous occupation Question
C) credit report
Which of the following is NOT considered unfair discrimination? O A) Refusing to issue an annuity to a man because he is only 25 years old O B) Refusing to insure someone O C) Refusing to issue an individual life insurance specifically because another insurer refused to write a policy on that person policy to a woman because she is unmarried O D) Charging a higher individual life insurance premium for a 50-year-old than for a 25-year-old
O D) Charging a higher individual life insurance premium for a 50-year-old than for a 25-year-old
An insured that meets the average health and life expectancy anticipated by the insurer for a person of that age and gender would be classified as:
O D) a standard risk
Major risk factors in life and health Insurance underwriting include all of the following EXCEPT O A) physical condition O B) habits or lifestyle O C) occupation O D) financial status
O D) financial status
Louise applied for a $40,000 life insurance policy, paid the initial premium, and received a conditional receipt. Which of the following statements is NOT correct? D A) If Louise died of a heart attack 1 day after completing the medical exam, which fulfilled her requirements, the insurer would continue to underwrite the policy as if she were still alive. B) If Louise died of a heart attack 1 day before taking the required medical exam, the insurer would still pay the beneficiary the coverage amount stated in the application. x C) If Louise completed her requirements by taking the required medical exam, but died 4 days later from an accidental fall, the insurer would still pay the beneficiary the coverage amount as long as the policy was issued as originally applied for. D) If Louise died from an accidental falla few days before her required medical exam, the insurer would return the full premium that was paid with the application with no coverage ever having gone into etfect.
B) If Louise died of a heart attack 1 day before taking the required medical exam, the insurer would still pay the beneficiary the coverage amount stated in the application.
With regard to life insurance applications, which of the following statements is CORRECT? O A) Part Il of the application deals with the proposed insured's personal and occupational history. O B) All applications for life insurance must include a medical exam. O C) The application includes the names of the insured and the beneficiary. O D) Part I of the application deals with the proposed insured's medical history.
O C) The application includes the names of the insured and the beneficiary.
If consumer information reports are obtained under false pretenses, the maximum penalty is
O C) a $5,000 fine, imprisonment for 1 year, or both
Which of the following does NOT appear in the producer's report? O A) Habits B) Education C) Financlal status O D) Character
B) Education
Chantal applied for life November 10, which she passed, and the results of that insurance on November 1, but she did not submit a premium payment with the exam were forwarded to the and the agent delivered the policy to Chantal on November 17, at which time she paid the first insurance company. The policy application. She underwent a physical examination on was issued by the company on November 15, premium. When did Chantal's coverage become effective? O A) November 15 B) November 10 C) November 17 D) November 1
C) November 17
Which of the following statements pertaining to sources of insurability information is CORRECT? A) An insurer cannot use an unfavorable credit report to reject an applicant for insurance. O B) When conducting an inspection report, an investigator cannot interview an individual who actually knows the applicant. C) Special questionnaires are used to obtain additional information when an extra hazard or risk may be involved. O D) The insurance agent completes the medical report on a life insurance applicant.
C) Special questionnaires are used to obtain additional information when an extra hazard or risk may be involved.
Coverage for a health insurance policy will take effect just as if the policy had already been isued if all of the following conditions have been met EXCEPT A) the policy is eventually issued as applied for O B) the applicant satisfies all of the conditions of the conditional receipt O C) the policy has been legally delivered to the applicant O D) the initial premium was paid with the health application
C) the policy has been legally delivered to the applicant
Which of the following statements regarding the Fair Credit Reporting Act is TRUE? O A) A Notice to Applicant is required. O B) Direct writers do not need to inform applicants about investigative reports. C) A Notice to Applicant is always issued within 3 days after the policy is delivered. O D) Third-party credit information may be given to insurers at any time,
O A) A Notice to Applicant is required.
Which of the following situations is the best example of unfair discrimination? O A) An insurer assigns a premium rating to an applicant because of studies that suggest members of the applicant's race have a shorter than average life expectancy. O B) An insurer assigns a premium rating to an applicant who weighs 30 pounds more than a typical person of that age and sex. O C) An insurer refuses to issue a policy to an applicant who has been treated for drug dependency on 2 separate occasions in the previous 5 years. O D) An insurer refuses to issue a policy to an applicant whose credit history suggests an inability to financially support the policy being applied for.
O A) An insurer assigns a premium rating to an applicant because of studies that suggest members of the applicant's race have a shorter than average life expectancy.
Which of the following statements regarding consumer rights is NOT correct? O A) Reporting agencies may not delete information in reports when proved incorrect. O B) Reporting agencies may reinvestigate disputed information. O C) Consumers may dispute information in their reports. O D) Insurers may use consumer reports as additional underwriting Information.
O A) Reporting agencies may not delete information in reports when proved incorrect.
Elaine signs an application for a $50,000 life policy, pays the first premium, and receives a conditional receipt. If Elaine were killed in an auto accident 2 days later,
O A) her beneficiary would receive $50,000, if Elaine qualified for the policy as applied for
The concepts of agent accuracy and completeness would prohibit all of the following practices EXCEPT O A) reviewing the completed application with the applicant to ensure accuracy O B) substantially rewording an applicant's answer to a question to improve the likelihood of approval O O C) correcting an application error without the applicant's knowledge O O D) allowing an applicant to skip over an application question he considered too personal
O A) reviewing the completed application with the applicant to ensure accuracy
An applicant determined by underwriting to be declined would be
O A) uninsurable at any price
Which of the following statements regarding risk factors is NOT correct? O A) Kimberly's job requires manual labor in a manufacturing plant. Betsy is an office supervisor who does no manual labor. Kimberly would probably be considered to have a higher disability risk than Betsy. O B) Jill is 15 years younger than her supervisor and therefore poses a higher risk to an insurance company. O C) Carlos, an office manager, would represent a lower disability risk to an insurance company than would Ezeklel, a foreman in a farm equipment factory. O D) Bob and Gunesh both work for the same construction company. Bob is an auditor, and Gunesh is a diesel mechanic. Of the two, Bob would likely represent a lower risk to an insurance company.
O B) Jill is 15 years younger than her supervisor and therefore poses a higher risk to an insurance company.
Of the following, which is a situation that could result in the conditional receipt becoming void? O A) The applicant dies after the policy is issued. O B) The applicant is found to be a substandard risk. O C) The applicant dies before the policy is issued. O D) The applicant's policy is issued as applied for.
O B) The applicant is found to be a substandard risk.
When Lisa applied for a life insurance policy, the agent be insurable under the company's general underwriting rules. This type of receipt is known as issued a receipt stating that the coverage is effective as of the date of application, if the applicant is found to O A) an inspection receipt O B) a conditional receipt O C) a binding receipt O D) an acceptance receipt
O B) a conditional receipt
Major risk factors in health insurance underwriting include all of the following EXCEPT O A) lifestyle O B) marital status C) occupation O D) physical condition
O B) marital status
Upon issuance of a conditional receipt to an Insurance applicant who has paid the insurer an initial premium
O B) the insurance company is conditionally assuming the risk
documents EXCEPT climbs, skis, and fies airplanes in his spare time. When he applies for a life insurance policy, the agent's and Malik's signatures will be required on all of the following Malk works as a dentist and mountain Information Bureau iInvestigative consumer reports and medical information O C) a form authorizing the insurer to obtain O B) the report issued by the Medical O A) a questionnaire regarding Malik's aviation activities O D) the application
O B) the report issued by the Medical Information Bureau iInvestigative
premium at the time of application. When the agent later delivers the policy, the agent must collect the premium and obtain which of the Choua applied for a $100,000 whole life policy but did not pay the Initial following statements from Choua? O A) A statement of continued representations and warranties O B) A statement of no material change in risks O C) A statement of good health O D) A statement of insurability
O C) A statement of good health
What kind of policy will protect an insurance agent against liability arising out of acts committed in her professional capacity?
O C) Errors and omissions
Which of the following statements is CORRECT? O A) Stan is applying for insurance. His younger sister, Kathryn, is committed to hang gliding. Family history is considered a risk factor in Insuring Stan. O B) Joyce's mother died 10 years ago, when she was 58, of cirhosis of the liver. Family history is a risk factor in insuring Joyce. O C) George's brother, father, and grandfather had diabetes during their lifetimes. Family history will be considered a risk factor when George applies for insurance. O D) Both Trisha and her spouse, Joan, are licensed general (noncommercial) aviation airplane pilots. They do not have to identify their hobby when they apply for insurance.
O C) George's brother, father, and grandfather had diabetes during their lifetimes. Family history will be considered a risk factor when George applies for insurance.
Which of the following statements pertaining to the Medical Information Bureau (MIB) is CORRECT? O A) Insurers do not need to get release of information forms from applicants. B) Insurers must report all underwriting decisions to the MIB. O C) Information obtained from the MIB by insurers may not be used as the sole reason to decline an applicant's request for insurance. O D) Information maintained by the MIB includes socio-economic data such as income, level of education, and zip code.
O C) Information obtained from the MIB by insurers may not be used as the sole reason to decline an applicant's request for insurance.
Which of the following statements about policy dellvery is CORRECT? O A) The Insurer typically sends the policy directly to the policyowner. B) Policies cannot be malled to agents for delivery to policyowners. O C) Most insurers require agents to personally deliver the policy so that they can explain the policy's terms, exclusions, and riders. D) Constructive delivery is not considered a legal means of delivering an insurance policy.
O C) Most insurers require agents to personally deliver the policy so that they can explain the policy's terms, exclusions, and riders.
All of the following are penaltles for violating the Fair Credit Reporting Act EXCEPT O A) elther fines or imprisonment O B) punitive damages awarded by a court O C) loss of license indefinitely O D) reasonable attorney's fees
O C) loss of license indefinitely
Delivering policies in person gives the agent an opportunity to do all of the following EXCEPT O A) answer any questions the policyowner has regarding the contract O B) review the policy with the policyowner O C) make last-minute changes to the policy O D) confirm riders and explain policy exclusions
O C) make last-minute changes to the policy
Which of the following situations would create a possible errors and omissions lability to the producer? O A) The producer falls to inform the client that her policy is being canceled at the end of the year. B) The producer fals to return phone calls from the clent. C) The producer informs the insurer that he has serious doubts about the applicant's insurability. O D) During the sale of a replacement health policy, the producer tells an applicant that the new pollicy will cover expenses ordinarily paid by Medicare.
O D) During the sale of a replacement health policy, the producer tells an applicant that the new pollicy will cover expenses ordinarily paid by Medicare.
When meeting with an applicant for health insurance, an insurance says he has been a nonsmoker for 10 years. Which of the following statements best describes the producer's responsibility? producer notices a pack of cigarettes in the applicant's shirt pocket, even though the applicant O D) The producer should provide an agent's report to the insurer explaining what she observed O C) The producer should change the answer on the application after the appointment. O B) The producer should ignore the fact, since it is the insurer's O A) The producer should insist that the applicant change his response to the question on the application. responsibility to identify this information.
O D) The producer should provide an agent's report to the insurer explaining what she observed
The concept of agent confidentiality requires all of the following practices EXCEPT O A) keeping completed applications from being seen by anyone except the applicant and authorized insurer personnel O B) avoiding gossiping about an applicant's personal information with others O C) notifying the applicant of insurer privacy practices O D) notifying the applicant of a substandard rating decision by the insurer
O D) notifying the applicant of a substandard rating decision by the insurer
An agent may do all of the following to comply with disclosure notification rules EXCEPT O A) answer any questions the applicant may have regarding the Insurer's information gathering and dissemination practices B) notify the applicant of the insurer's information disclosure procedures with a written form c) obtain the applicant's signature on the disclosure form authorizing the insurer to gather and disseminate information O D) provide a copy of the information disclosure procedures form to the state Department of Insurance
O D) provide a copy of the information disclosure procedures form to the state Department of Insurance
involved in an accident and admitted to a hospital. On August 12, the agent received Roger's policy from the insurance company. Which of the following statements On August 1, Roger completed an application for a major medical policy, agent. No medical examination was required. On August 3, the agent submitted Roger's application and premium to the insurance company. On August 6, Roger was gave his agent a check for the initial premium, and received a conditional receipt from the concerning this situation is CORRECT? OA Roger's coverage began when he received the conditional receipt. O B) Roger's coverage began the day the agent sent the appilication and premium to the insurance company. C) Roger's coverage began the day the insurance company received the application and premium from the agent. O D) Roger's coverage will begin when he receives the policy from the agent.
OA Roger's coverage began when he received the conditional receipt.