Chapter exam end questions; ch 5; Life underwriting

An incomplete life insurance application submitted to an insurer will result in which of these actions?

-Application will be returned to the writing agent

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

-Aviation exclusion

A life insurance application must be signed by all of these, EXCEPT:

-Beneficiary

K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?

-Conditional

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

-Fair Credit Reporting Act

Which of these actions should a producer take when submitting an insurance application to an insurer?

-Inform insurer of relevant information not included on the application

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

-Inspection report. (An inspection report may include information obtained by a telephone call to the proposed insured.)

Which of the following statements is CORRECT about an agent who is taking an insurance application?

-The agent should have the applicant initial any changes made on the application

The reason for backdating a policy is

-To obtain a premium rate based on an earlier age

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as:

-a representation A representation is a statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract.

What is the purpose of the U.S.A. Patriot Act?

-detect and deter terrorism

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

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 feb 7. Q is dissatisfied and returns the policy feb 13. How will the insurer handle this situation?

-the policy will be returned within the free-look period, premium will be fully refunded.

At what time must a policyowner have insurable interest on the insured in order for life policy to be valid? A) After the Contestable period B) When the policy proceeds are paid C) At the time of application D)When the insured dies

C) At the time of application

A Medical Information Report (MIB) report may disclose which of the following: A) prior preferred rating B) prior use of marijuana C) prior lapsing of policy D) prior bankruptcy judgement

B) prior use of marijuana