Underwriting life insurance.

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with

An exclusion for the medical condition

Any changes made on an insurance application requires the initials of whom?

Applicant

Before an insurance policy is issued, which of these components of the contract is required?

Applicants signature on application

An incomplete insurance application submitted an insurer will result in which of these actions?

Application will be returned to the writer producer-agent

T applies for an insurance policy and is told by the producer-agent that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk , what item is given to T?

Binding receipt

What is the purpose of the U.S Patriot Act?

Detect and deter terrorism

An agent takes an individual insurance application, collets the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to....

Determine if the applicant is an acceptable risk by completing standard underwriting procedures

What does the Medical Information Bureau (MIB) Identify?

Existing life insurance coverage with other carriers

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

On January 8th, an applicant filled out an application for an insurance policy but did not include the initial premium. The insurance company approved the application on January 14th and issued the policy January 15th. The agent delivered the policy on the 26th and collected the first premium. When did the coverage become effective?

January 26th

Which of these factors do NOT play a roll in the underwriting of a life or health insurance policy?

Marital status

Which of these do NOT constitute policy delivery?

Policy issued with a rating

Which of these terms accurately defines an underwriter's assessment of information on an insurance application?

Risk classification

From what authority derives the requirement that insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant

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

An insurance company may NOT reject a prospective insured's insurance application on the basis of what of the following factors?

Gender

Which of these actions should a producer take when submitting an insurance application to an insurer?

Inform insurer of relevant information not included on the application

What is being delivered during a policy delivery?

Insurance contract to the proposed insurer

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Policy was returned within the free-look period, premium will be fully refunded

Consumer reports requested by an underwriter during the application process of a health insurance can be used to determine...

Probability of making timely premium payments

All of these are considered sources of underwriting information about an applicant EXCEPT

Rating Services

A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?

Send a notice to the MIB that the applicant was declined

P is a producer who notices 5 questions on a health application were not answered. What action should P take?

Set up a meeting with the applicant to answer the remaining questions

Which of the following statements about the classification of applicants is false?

Substandard applicants are never declined by underwriters

An applicant's medical informatics received from the Medical information Bureau (MIB) may be furnished to the

The applicants physician

K is an agent who takes an application for individual insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium and obtained a good health statement from the insured

I'm order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and...

The initial premium

Why is an applicants signature required on a health insurance application?

To attest that the statements on the application are accurate to the best of the applicants knowledge

If the initial premium is not collected during the application process, when does an insurance contract become effective?

When the agent delivers the policy and collects the initial premium

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

K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?

conditional

M completes an application for health insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT

free-look period has expired