Life Insurance- Application, Underwriting, Delivering
Which of the following individuals must have insurable interest in the insured?
The policyowner
An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of
a STOLI policy
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium
Whose responsibility is it to determine that all the questions on an insurance application are answered correctly?
The producer
If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about
Whether an insurable interest exists between the individuals
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant no later than
With the policy
An insurance contract requires that both the insured and insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
Conditional
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
STOLI policies are in direct opposition of the principle of
Insurable interest
The Federal Fair Credit Reporting Act...
Regulates consumer reports
All of the following are requirements for life insurance illustrations EXCEPT
They must be part of the contract
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
Who makes up the Medical Information Bureau?
Insurers
As a field underwriter, a producer is responsible for all of the following tasks EXCEPT
Issuing the policy that is requested
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution.
Which of the following documents delivered to the policyholder includes information about premium amounts, cash values, surrender values, and death benefits for specific policy years?
A policy summary
The term "illustration" in a life insurance policy refers to
A presentation of nonguaranteed elements of a policy
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
The Fair Credit Reporting Act