chapter2

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

MIB report

which of these terms accurately defines an underwrters assessment of information on a life insurance application

Risk classification .underwriting another term for risk selection is the process of reviewing the many characteristics that make up the risk profile of an applicant to determine if the applicant is insurabe and if so at standard or substandard

The of the folowing statements is correct about an agent who taking an insurance application.

The agent should have the applicatant initial any changes made on the application.

what would the medical informattion Bureau (MIB)identify

(!)Testing positive for mmanrijuana use from a previous screening (2)Existing life insurance coverage with other carriers(3)credit scores (4)primay physicain

An underwriter determines that a life insurance applicants risk should be reclassified due to a health issue . this policy may be issued with a

(1)extra premum (2)concealment clause(3)extended contestabel period (4)exclusion for medical condition

The USA Patriot Act was enacted in

2001

A statement made by an insued in an insurance application that must be true to the best of ones knowledge and which become a part of the contract ia known as

an isuring agreement ....a mutual assent ...a warrantly...a representation

An agent gives a conditional receipt to a client for an insurance after collecting the initial premium . when will the policy become effective..

when the policy is issued ...the date of policy delivery .when the conditions of the receipt arte met .....the date the sales appointment was set..Anwer when the conditions of the receeipt are met

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

which of these factors do NOT play a role in the underwriting of a life insurance policy

(1)Avocations (2) Credit status (3) Marital status (4) Occupation Answer Marital status...Marital status does not affect the underwriting of a life insurance policy

all of these are considered sources of underwriting nformation about an applicant.EXCEPT

Rating servies

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company . however the chec was never signed ben the applicant . if the application is approvedn . when will coverage ben effective.

The date application was submitted to the insurance company

upon policy delivery a signed good health good health statement is requesteed from the applicant why would this be necessary

The initial premium was not submitted with the application.on delivery of a policy a signed statement of good health is typically rerquested if the application was submitted without the initial premium

why is an applicants signature req1uired on a life insurance application

To attest that the statements of the application are accurate to the best of the applicants

Any changes made on an insurance application requires the initials of whom

applicants

An applicants medical information received from the medical information bureau (MIB) may b e furnished to the

applicants physician

k applies for a life insurance policy on herself and submits the initial premium with the applicattion . she is given a receipt by the agent stating tht coverage begins immediately if the application is approved.what kind of receipt was used

conditional

The underwriting process involves all these EXEPT

credit ..policy loan .....risk classification .....application...answer polciy loan

what is the purpose of the usa patriot act

detect and deter terrorism

An underwriter determines that a life insurance applicatants risk should be reclassiified due to a health issue. this policy may b e issued with .

extra premium ....in this situation the policy may be issued with an premium

which federal law allows an insurer to obtain an inspection 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 inclulded on the application

what is being delivered during a policy delivery

insurance contract tyo the proposed insured

which of these do not consitute policy delivery

policy issued with a rating

consumer reports requested by an underwriter during the application process of a llife isurance policy can be used to determine

probability of making timely premium payments

p is a producer who notices 5 questions on a life application were not answered. what actions should p take

set up a meeting with the applicant tyop answer the remainging questions

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

(1)Applicants signature on application

T applies for a life insurance policy and is told by the peroducer that the insurer is bound to the coverage as of the date of the application or medcal examination , whichever is later.Assuming that T is an acceptable risk , what item is given to T

(1)Binding receipt (2)conditional receipt(3)Warranty rerceipt (4)Backdated receiptAnswer condition reeipt

under the usa patriot act, insurers are required to report

10000

when a policyowner cash surrenders a universal a red flag for

Anti -Money Laundering violation......when a policyowner cash surrenders a universal life inlsurance policy in its early years. this may be considered a red flag for an anti moeny laundering violation

when an insurance application is taken by a producer which of these statements is ture

Any changes made on the application require the applicants initials

what is the initial source of underwriting for an insurance policy

Application containing statements from the insured.......the initial source of underwriting for an insurance policy is the application containining statemen tsAnswer (1)

The reason for backdating a policy is

to obtain a premium rate based on an earlier age

ABC insurance company has accepted a life insurance application which contains unansweered questions. the company then makes the application part of the life contract in this situation,the insurer has

waived one of its legal rights

Question 2 A $20000 life insurance policy application is completed , however the producer does not collect the initial premium . At what point does the coverage go into effect....

when the applicant receives the policy and pays the initial ;premium..

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

After all medical and personal information has been evaluated(2)when insurer receives initial premium from the producer (3)when producer delivers policy and collects initial premium(4)After application has been approved by the underwritersAnswer ''when producer policy delivers policy and collects initial premium ////insurance becomes effective on delivery of the policy to the inusred and payment of the initial premium to the producer