Life Insurance Underwriting and Policy Issue - Chapter 5
Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of:
$10,000
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n):
Anti-Money Laundering violation
Any changes made on an insurance application requires the initials of whom?
Applicant
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When the conditions of the receipt are met
All are true statements regarding the underwriting process, EXCEPT:
AIDS and HIV virus exams can be conducted in a discriminatory fashion
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
Aviation exclusion
Which Federal law allows an insurer to obtain an inspection report on a potential insured?
Fair Credit Reporting Act
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium
A life insurance application may be rejected on the basis of all of these factors EXCEPT
Gender
Why must an insurance applicant answer all the questions on the application?
Statements and representations on the application are part of the consideration for issuing a policy
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Martial status
The entity whose sole purpose sharing medical data among its members companies is called the
Medical Information Bureau (MIB)
The underwriting process involves all of these, EXCEPT for:
Policy loan
A Medical Information Report (MIB) report may disclose which of the following:
Prior use of marjuana
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
Set up a meeting with the applicant to answer the remaining questions
