examfx

if an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to

charge a higher premium

which of the following statements is NOT true concerning insurable interest as it applies to life insurance

a debtor has an insurable interest in each other

why should the producer personally deliver the policy when the first premium has already been paid

to help the insured understand all aspects of the contract

which of the following best details the underwriting process for life insurance

selection, classification, and rating of risks

which of the following statements is correct about the standard risk classification in the same age group and similar lifestyles

standard risk is representative of the majority of people

an applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. if the applicant is killed in an automobile accident the next day

the beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for

an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. five days later the applicant had to submit to a medical exam. if the policy is issued, what would be the policy' effective date

the date of the medical exam

an insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. which of the following will explain the reason a death benefit claim is denied

material misrepresentation

a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will

pay the policy proceeds only if it would have issued the policy

an applicant who receives a preferred risk classification qualifies for

lower premiums than a person who receives a standard risk

if an insurer issued a policy based on a application that had unanswered questions, which of the following will be TRUE?

the policy will be interpreted as if the insurer waived its right to an answer on the application.