APPLICATION, UNDERWRITING AND DELIVERING THE POLICY

Risk Selection

What is the main responsibility of a company's underwriting unit?

The term "illustration" in a life insurance policy refers to

A presentation of nonguaranteed elements of a policy.

What is a material misrepresentation?

A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

At the time of application

When must insurable interest exist in a life insurance policy?

Policy Summary- The policy summary must be provided when the policy is delivered.

Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?

Policy owner

Which of the following individuals must have insurable interest in the insured?

Debtor in the life of the creditor

Which of the following is NOT an example of a valid insurable interest?

Medical Information Bureau (MIB)

Which of the following would provide an underwriter with information concerning an applicant's health history?

illustration

a presentation or depiction that includes nonguaranteed elements of a policy of individual or group life insurance over a period of years Distinguish between guaranteed and projected amounts; Clearly state that an illustration is not a part of the contract; and Identify those values that are not guaranteed as such.

Solicitation of insurance

an attempt to persuade a person to buy an insurance policy, and it can be done orally or in writing

Field Underwriting Duties

completing the application and collecting the premium (agent doesnt issue policy)

All of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT

education

Loss

insurance is a contract by those who seeks to protect another from

risk

insurance is the transfer of

What is the purpose of a disclosure statement in life insurance policies?

to explain features and benefits of the proposed policy to the consumer

Insurance

what do people use to transfer the risk of loss to a larger group?

The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy.

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?

Issue the policy that is requested.

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT

With the policy

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

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

Other insurance coverages.

Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT

Which of the following will be included in a policy summary?

Premium amounts and surrender values

Buyer's Guide

Provides basic, generic information about life insurance policies that contains, and is limited to, language approved by the Department of Insurance.

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

The date of medical exam