Ch 5 Life

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

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when

P receives the policy and pays the premium

Which of these do NOT constitute policy devilry?

Policy issued with a rating

upon delivery of a rated life insurance policy, the producer must obtain each of the following EXCEPT:

Signed HIPPA disclosure

under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of:

$10,000

The USA Patriot Act wan enacted in:

2001

Which parts of a life insurance policy are guaranteed to be true?

warranty

when does a life insurance contract become effective if the initial premium is not collected during the application process?

when producer delivers policy and collects initial premium

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

At the time of application

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

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

applicant

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

applicant's signature on application

What is the purpose of the USA Patriot Act?

detect and deter terrorism

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

exclusion for the medical condition

Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

inspection report

what is the purpose of a policy summery?

its highlights the critical parts of the policy issued

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:

probability of making timely premium payments

which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

risk classification

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

which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company