CH 1: Completing the Application, Underwriting, and Delivering the Policy
Inspection Report
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of report is that?
The customer's associates, friends, and neighbors provide the report's data
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
Selection, classification, and rating of risks
Which of the following best details the underwriting process for life insurance?
3 days
How many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?
5 days
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
With the policy
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant...
Insurance companies from adverse selection by high risk persons
The Medical Information Bureau (MIB) was created to protect
A presentation of nonguaranteed elements of a policy
The term "illustration" in a life insurance policy refers to
2 years
The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?
d) Respond to the consumer's complaint
Under the Fair Crediting Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must: a) Defend the report if the agency feels it accurate b) Change the report c) Send an actual certified copy of the entire report to the consumer d) Respond to the consumer's complaint
It is intended to provide coverage on a date earlier than the date of the issuance of the policy
What is the purpose of a conditional receipt?
It is a nonprofit organization that maintains underwriting information on applicants for life insurance
Which of the following best describes the MIB?
The Federal Trade Commission (FTC)
Which of the following entities established the Do-Not-Call Registry?
Buyer's Guide
Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?
The Fair Credit Reporting Act
Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
Fair Credit Reporting Act
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?