Ch.5 - Life underwriting

When a insurance application is taken by a producer, which of these statements is true?

Any change made on the application require the applicant's initials

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

At the time of application

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

Aviation exclusion

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

Complete the application and review the information with the customer prior to obtaining the customers signature, then send the application off to the insurance company

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

Conditional reciept

What id being delivered during a policy delivery?

Insurance contract to the proposed insured

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT

Signed HIPPA disclosure

What is the initial source of underwriting for an insurance policy?

The application containing statements from the insured

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 not returned within the free-look period, premium will be fully refunded

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

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has

Waived one of its legal rights

A(n) ________ contained in a life insurance policy states that the policy will NOT cover certain risks.

exclusion

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

extra premium

The reason for backdating a policy is:

to obtain a premium rate based on an earlier age