Chapter 2

Disclose the amount of commission earned on the sale

All of the following are things a producer should do when meeting with the client after the policy has been issued, except:

An MIB report can be used in place of an APS

All of the following are true regarding an Attending Physician's Statement (APS), except:

Much like illegal drugs and nicotine the applicant does not have to provide consent prior to insurer's testing for HIV

All of the following are true regarding disclosures at the point of sale and issues relating to AIDS, except:

That their statements are true

An applicant's signature on an application indicates what?

By signing the application

By what means does the client acknowledge that an insurer may use services and information provided by third parties to gather information during the underwriting process?

Reimburse the applicant for any surrender charges that may be incurred as a result of the transaction

In a replacement sale all of the following are producer responsibilities, except:

Existing

In a replacement transaction, the insurer that is having its policy replaced is known as the ___________________ insurer

Date of birth, gender

Part 2 of the application consists of all of the following information, except:

An applicant's physician to provide information about the applicant's medical history

The Attending Physician's Statement (APS) is completed by:

Auto and Homeowners

The MIB is used in the underwriting of all of the following types of insurance, except:

Insurance companies

The Medical Information Bureau (MIB) is formed by:

On the date the policy is delivered and premium collected

When a producer receives an application for life insurance that is completed and signed, but without premium payment, when does coverage start?

Preferred risk

When an individual qualifies for a lower premium or rate than standard risks, the insured is considered a:

Subrated

Which of the following is NOT a common rating classification?

Past life insurance owned

Which of the following is not a major source of underwriting information?

Beneficiary

Whose signature is not required on a life insurance application?