Insurance exam
Which of the following entities can legally bind coverage? a)Federal Insurance Board b)Agent c)Insurer d)The insured
c)Insurer Only insurers, not agents, can bind coverage.
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? a)As of the application date b)As of the policy delivery date c)As of the first of the month after the policy issue d)As of the policy issue date
a)As of the application date If the full premium was submitted with the application and the policy was issued as requested, the policy coverage effective date would generally coincide with the date of application.
All of the following statements concerning Accidental Death and Dismemberment coverage are correct EXCEPT a)Death benefits are paid only if death occurs within 24 hours of an accident. b)Accidental death benefits are paid only if death results from accidental bodily injury as defined in the policy c)Dismemberment benefits are paid for certain disabilities that are presumed to be total and permanent. d)Accidental death and dismemberment insurance is considered to be limited coverage.
a)Death benefits are paid only if death occurs within 24 hours of an accident. Under an Accidental Death and Dismemberment insurance policy, the death benefit will be paid if the accidental death occurs within 90 days of the accident, not 24 hours.
What is an important feature of a dental expense insurance plan that is NOT typically found in a medical expense insurance plan? a)Diagnostic and preventive care b)A broad coverage area c)A low monthly premium d)Low cost deductibles
a)Diagnostic and preventive care Dental expense insurance is a form of medical expense health insurance that covers the treatment, care and prevention of dental disease and injury to the insured's teeth. An important feature of a dental insurance plan which is typically not found in a medical expense insurance plan is the inclusion of diagnostic and preventive care (teeth cleaning, fluoride treatment, etc.).
Which of the following is true regarding taxation of dividends in participating policies? a)Dividends are not taxable. b)Dividends are taxable only after a certain amount is accumulated annually. c)Dividends are taxable in some life insurance policies and nontaxable in others. d)Dividends are considered income for tax purposes.
a)Dividends are not taxable. Dividends are not considered to be income for tax purposes, since they are the return of unused premiums. The interest earned on the dividends, however, is subject to taxation as ordinary income.
The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the a)Incontestability clause. b)Reinstatement clause. c)Insuring clause. d)Misstatement of Age clause.
a)Incontestability clause. If an insurer wishes to contest any statements on an application, they must do so within the first two years.
A Return of Premium term life policy is written as what type of term coverage? a)Increasing b)Decreasing c)Renewable d)Level
a)Increasing Return of premium (ROP) life insurance is an increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid.
Who can request changes in premium payments, face value, loans, and policy plans? a)Policyowner b)Contingent beneficiary c)Beneficiary d)Producer
a)Policyowner Mandatory provisions give these rights to the policyowner.
Workers Compensation benefits are regulated by which entity? a)State government b)Employer c)Insurer d)Federal government
a)State government The state government offers and regulates Workers Compensation benefits, which vary slightly from state to state.
Under an extended term nonforfeiture option, the policy cash value is converted to a)The same face amount as in the whole life policy. b)The face amount equal to the cash value .c)A lower face amount than the whole life policy. d)A higher face amount than the whole life policy.
a)The same face amount as in the whole life policy. Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy.
A hospital indemnity policy will pay a)Any expenses incurred by the stay in the hospital, minus coinsurance payments and deductibles. b)A benefit for each day the insured is in a hospital. c)Income lost while the insured is in the hospital. d)All expenses incurred by the stay in the hospital.
b)A benefit for each day the insured is in a hospital. Hospital confinement indemnity policies pay specific amounts that depend on the amount of time the insured is confined to the hospital.
All of the following are correct about the required provisions of a health insurance policy EXCEPT a)The entire contract clause means the signed application, policy, endorsements, and attachments constitute the entire contract b)A reinstated policy provides immediate coverage for an illness. c)Proof-of-loss forms must be sent to the insured within 15 days of notice of claim. d)A grace period of 31 days is found in an annual pay policy.
b)A reinstated policy provides immediate coverage for an illness. Accidental injury is covered immediately, but to protect the insurer against adverse selection, losses resulting from sickness are covered only if the sickness occurs at least 10 days after the reinstatement date.
In the event of a divorce, which of the following would allow a divorcee to continue receiving group health coverage under an insured spouse's plan for an additional 36 months? a)Social Security b)COBRA c)MSA d)HIPAA
b)COBRA Dependents of employees are eligible to receive group health insurance under the employee's plan. If the employee and the dependent become legally separated or divorced, or if the employee dies, the dependent will be eligible for COBRA benefits for up to 36 month (The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.)
Health Savings Accounts (HSAs) are designed to a)Provide duplicate coverage for health care expenses. b)Help individuals save for qualified health expenses. c)Increase individual interest income d)Insure against catastrophic losses.
b)Help individuals save for qualified health expenses. HSAs help individuals save for qualified out-of-pocket health care expenses such as the deductible expense from a high deductible health plan.
Which of the following provisions is mandatory for health insurance policies? a)Intoxicants and narcotics b)Physical examination and autopsy c)Recurrent disability d)Unpaid premiums
b)Physical examination and autopsyb)Physical examination and autopsy Physical examination and autopsy is a mandatory provision required by law. The other answer choices are optional provisions.
A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?a)Medical exam and parents' medical history b)Proof of insurability is not required. c)Medical exam d)Her parents' federal income tax receipts
b)Proof of insurability is not required. If a Children's Term rider is attached to a life insurance policy, children can be covered under the policy until they reach the maximum age stated in the policy. At that point, they can convert their coverage to a new policy without having to issue proof of insurability.
Which of the following is NOT provided by an HMO? a)Patient care b)Reimbursement c)Services d)Financing
b)Reimbursement Traditionally the insurance companies have provided the financing while the doctors and hospitals have provided the care. The HMO concept is unique in that the HMO provides both the financing and the patient care for its members. The HMO provides benefits in the form of services rather than in the form of reimbursement for the services of the physician or hospital.
Which two terms are associated directly with the way an annuity is funded? a)Renewable or convertible b)Single payment or periodic payments c)Increasing or decreasing d)Immediate or deferred
b)Single payment or periodic payments Annuities are characterized by how they can be paid for: either a single payment (lump sum) or through periodic payments in which the premiums are paid in installments over a period of time. Periodic payment annuities can be either level, in which the annuitant/owner pays a fixed installment, or the payments can be flexible, in which the amount and frequency of each installment varies.
The premiums paid by the employer in a business life insurance policy are a)Never taxable to the employee. b)Tax deductible by the employer. c)Tax deductible by the employee. d)Always taxable to the employee.
b)Tax deductible by the employer. The premiums that an employer pays for life insurance on an employee, whereby the policy is for the employee's benefit, are tax deductible to the employer as a business expense.
Which of the following would be a qualifying event as it relates to COBRA? a)Eligibility for Medicare b)Termination of employment due to downsizing c)Termination of employment for stealing d)Eligibility for coverage under another group plan
b)Termination of employment due to downsizing Employee qualifying events include the termination of employment for reasons other than for misconduct; dependents' qualifying events include the death of the employee, divorce or legal separation.
The period of time immediately following a disability during which benefits are not payable is a)The blackout period. b)The elimination period. c)The probationary period. d)The grace period.
b)The elimination period. The elimination period is a waiting period, expressed in days, not dollars, imposed on the insured from the onset of disability until benefit payments commence.
Which of the following is INCORRECT concerning a noncontributory group plan? a)The employer pays 100% of the premiums. b)The employees receive individual policies. c)They help to reduce adverse selection against the insurer d)They require 100% employee participation.
b)The employees receive individual policies. The employer receives a master policy, and employees receive a certificate of insurance.
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums? a)The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums. b)The insured's premiums will be waived until she is 21. c)The premiums will become tax deductible until the insured's 18th birthday. d)Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected.
b)The insured's premiums will be waived until she is 21. If the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age, such as 21.
Which of the following statements is true regarding coinsurance? a)The smaller the percentage that is paid by the insured, the more consistent the required premium will be. b)The larger the percentage that is paid by the insured, the lower the required premium will be. c)The larger the percentage that is paid by the insured, the higher the required premium will be. d)The smaller the percentage that is paid by the insured, the lower the required premium will be.
b)The larger the percentage that is paid by the insured, the lower the required premium will be. After the insured satisfies the policy deductible, the insurance company will usually pay the majority of the expenses--typically 80%--with the insured paying the remaining 20%. Other coinsurance arrangements exist, such as 90%/10%; 75%/25%; or 50%/50%. When the insured retains a larger share of the risk, they will pay a lower premium.
Which of the following is true regarding elimination periods and the cost of coverage? a)Elimination periods have no effect on the cost of coverage b)The longer the elimination period, the lower the cost of coverage c)The shorter the elimination period, the lower the cost of coverage d)The longer the elimination period, the higher the cost of coverage
b)The longer the elimination period, the lower the cost of coverage The "elimination period" is a period of days which must expire after the onset of an illness or occurrence of an accident before benefits will be payable. The longer the elimination period is, the lower the cost of coverage will be.
The insuring clause of a disability policy usually states all of the following EXCEPT a)The types of losses covered b)The method of premium payment. c)The identities of the insurance company and the insured. d)That insurance against loss is provided.
b)The method of premium payment. The insuring clause, usually on the first page of the policy, is the general statement that defines the insurance agreement and identifies the insured and the insurance company and states what kind of loss (peril) is covered.
What is the purpose of key person insurance? a)To maintain an account that insures the owner of a company remains solvent b)To lessen the risk of financial loss because of the death of a key employee c)To provide health insurance to the families of key employees d)To insure retirement benefits are available to all key employees
b)To lessen the risk of financial loss because of the death of a key employee A business can suffer a financial loss because of the premature death of a key employee that has specialized knowledge, skills or business contacts. A business can lessen the risk of such loss by the use of key person insurance.
The paid-up addition option uses the dividend a)To accumulate additional savings for retirement. b)To purchase a smaller amount of the same type of insurance as the original policy. c)To purchase a one-year term insurance in the amount of the cash value. d)To reduce the next year's premium.
b)To purchase a smaller amount of the same type of insurance as the original policy. The dividends are used to purchase a single premium policy in addition to the face amount of the permanent policy.
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years? a)A privacy notice b)A buyer's guide c)A policy summary d)A notice regarding replacement
c)A policy summary A policy summary usually includes all the listed information, and must be delivered along with a new policy.
In a replacement situation, all of the following must be considered EXCEPT a)Limitations b)Exclusions c)Assets. d)Benefits.
c)Assets. In a replacement situation the agent must be careful to compare the benefits, limitations and exclusions found in the current and the proposed replacement policy.
The premium charged for exercising the Guaranteed Insurability Rider is based upon the insured's a)Average age. b)Issue age. c)Attained age. d)Assumed age.
c)Attained age. The premium charged for the increase will be based upon the attained age of the insured.
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? a)Representation b)Adhesion c)Consideration d)Good faith
c)Consideration The binding force in any contract is consideration. Consideration on the part of the insured is the payment of premiums and the health representations made in the application. Consideration on the part of the insurer is the promise to pay in the event of loss.
What is another name for interest-sensitive whole life insurance?a)Term life b)Adjustable life c)Current assumption life d)Variable life
c)Current assumption life Interest-sensitive whole life, also referred to as current assumption life, is a whole life policy that provides a guaranteed death benefit to age 100.
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n) a)Flexible Annuity. b)Immediate Annuity. c)Equity Indexed Annuity. d)Variable Annuity.
c)Equity Indexed Annuity. The interest rates of Equity Indexed Annuities are tied to the Standard and Poor's Index.
At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called a)Accelerated benefits. b)Cost of living. c)Guaranteed insurability .d)Waiver of cost of insurance.
c)Guaranteed insurability. Guaranteed insurability is a rider that is included at the time of application (or can be added at a later date) which allows the insured to increase the amount of insurance without proving evidence of insurability.
Which of the following riders would NOT increase the premium for a policyowner? a)Waiver of premium rider b)Multiple indemnity rider c)Impairment rider d)Payor benefit rider
c)Impairment rider The impairment rider excludes a specified condition from coverage, therefore, reducing benefits. An insurance company will not charge extra for a rider that reduces benefits.
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? a)Single life b)Fixed-amount c)Life income with period certain d)Joint and survivor
c)Life income with period certain The life income with period certain option guarantees payments for the life of the recipient and also specifies a guaranteed period of continued payments. If the recipient should die during this period, the payments would continue to a designated beneficiary for the remainder of the period.
An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point? a)Approved the application b)Issued the policy c)Neither approved the application nor issued the policy d)Both approved the application and issued the policy
c)Neither approved the application nor issued the policy When the agent receives the application and issues a conditional receipt, the insurer has not yet approved the application and issued the policy.
Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner? a)Entire Contract Clause b)Proof of Loss c)Payment of Claims d)Change of beneficiary
c)Payment of Claims The Payment of Claims provision states that the claims must be paid to the policyowner, unless the death proceeds need to be paid to a beneficiary.
Insurers may change which of the following on a guaranteed renewable health insurance policy? a)Individual rates b)No changes are permitted. c)Rates by class d)Coverage
c)Rates by class On a guaranteed renewable health insurance policy, the insurer may increase premiums on a class basis only and not on an individual policy.
All of the following long-term care coverages would allow an insured to receive care at home EXCEPT a)Respite care. b)Home health care. c)Skilled care. d)Custodial care in insured's house.
c)Skilled care. Custodial care, respite care, home health care, and adult day care are all coverages used to reduce the necessity of admission into a care facility. Skilled care is almost always provided in an institutional setting.
An insured has endured multiple surgeries and hospitalizations for an illness during the last few months. Her insurer no longer bills her for medical expenses. Which of the following allows for that? a)Waiver of premium b)Maximum loss c)Stop-loss limit d)Grace period
c)Stop-loss limit A "stop-loss limit" is a specified dollar amount beyond which the insured no longer participates in the sharing of expenses.
The annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE? a)The insurance company will retain the cash value and pay back the premiums to the owner's estate. b)The money will continue to grow tax-deferred until the liquidation period, and then will be paid to the beneficiary c)The beneficiary will receive the greater of the money paid into the annuity or the cash value. d)The owner's estate will receive the money paid into the annuity.
c)The beneficiary will receive the greater of the money paid into the annuity or the cash value. If the annuitant dies during the accumulation period, the beneficiary receives benefits from the annuity: either the amount paid into the plan or the cash value, whichever is greater.
What is the advantage of reinstating a policy instead of applying for a new one? a)The face amount can be increased b)The cash values have gained interest while the policy was lapsed. c)The original age is used for premium determination. d)Proof of insurability is not required.
c)The original age is used for premium determination. The reinstatement provision allows the policyowner an opportunity to put a lapsed policy back in force, subject to proving continued insurability. If the policyowner elects to reinstate the policy, as opposed to purchasing a new policy, the reinstated policy is restored to its original status.
In a life settlement contract, whom does the life settlement broker represent? a)The beneficiary b)The life settlement intermediary c)The owner d)The insurer
c)The owner Life Settlement Broker is a person who, for compensation, solicits, negotiates, or offers to negotiate a life settlement contract. Life settlement brokers represent only the policyowners.
All of the following are true of an annuity owner EXCEPT a)The owner has the right to name the beneficiary. b)The owner is the party who may surrender the annuity. c)The owner must be the party to receive benefits. d)The owner pays the premiums on the annuity.
c)The owner must be the party to receive benefits. The "owner" is the person who purchases the contract and has all of the rights such as naming the beneficiary and surrendering the annuity. The owner, however, does not have to be the one who receives the benefits; it could be the annuitant (if different from the owner) or the beneficiary.
Which is true about a spouse term rider? a)The rider is decreasing term insurance. b)Coverage is allowed up to age 75. c)The rider is usually level term insurance. d)Coverage is allowed for an unlimited time.
c)The rider is usually level term insurance. The spouse term rider allows a spouse to be added for coverage. It is available for a limited amount of time, typically expiring at age 65. A spouse term rider (just like any other insured rider) is usually level term insurance.
According to the rights of renewability rider for cancellable policies, all of the following are correct about the cancellation of an individual insurance policy EXCEPT a)Claims incurred before cancellation must be honored. b)An insurance company may cancel the policy at any time. c)Unearned premiums are retained by the insurance company. d)The insurer must provide the insured a written notice of the cancellation
c)Unearned premiums are retained by the insurance company. This rider allows the insurer to cancel the policy at any time, or at the end of the policy period. Any unearned premium must be returned to the policyholder. If the insurer cancels, the unearned premium will be returned on a pro rata basis.
An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? a)Nonpayment of premium b)Change of beneficiary c)Viatical settlement d)Estate liquidation
c)Viatical settlement A viatical statement allows an insured with a life-threatening condition to sell the existing policy in order to receive benefits when they are most needed. Viators typically receive a percentage of the policy's face value from the person who purchases the policy.
For group medical and dental expense insurance, what percentage of premium paid by the employer is deductible as a business expense?a)50% b)60% c)90% d)100%
d)100% For group medical and dental expense insurance any premium paid by the employer is deductible as a business expense.
The president of a manufacturing company has offered one of the company's officers a special individual annuity plan that is unavailable to lower-echelon employees. This plan would be funded with before-tax corporate dollars, and it does not meet government approval standards. This annuity plan is a)An executive annuity plan. b)Subject to government standards. c)Illegal. d)A nonqualified annuity plan.
d)A nonqualified annuity plan. Nonqualified plans are a perfectly legal way for selected employees to receive certain types of benefits. Before-tax corporate dollars can be used for these plans, and they are not subject to government standards. Because of this, however, nonqualified plans contributions are not tax-deductible, unlike with qualified plans.
The LEAST expensive first-year premium is found in which of the following policies? a)Increasing Term b)Decreasing Term c)Level Term d)Annually Renewable Term
d)Annually Renewable Term Annually renewable term is the purest form of term insurance. The death benefit remains level, but the premium increases each year with the insured's attained age. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. In level term and increasing term policies, the premium also remains level for the term of the policy. Therefore, in the other types of level policies, the first-year premium would not be different from any other year.
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested? a)When the applicant's credit is checked b)When the policy is delivered c)At the initial interview d)At the time of application
d)At the time of application A notice to the applicant must be issued to all applicants for health insurance coverage.
All of the following are duties and responsibilities of producers at the time of application EXCEPT a)Explain the nature and type of any receipt the producer is giving to the applicant. b)Probe beyond the stated questions if the producer feels the applicant is misrepresenting or concealing information. c)Check to make sure that there are no unanswered questions on the application. d)Change any incorrect statement on the application by personally initialing next to the corrected statement.
d)Change any incorrect statement on the application by personally initialing next to the corrected statement. Any changes to information on an application must be initialed by the applicant.
A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as a)Major medical. b)AD&D. c)Medical expense. d)Critical illness.
d)Critical illness. A critical illness policy covers multiple illnesses, such as heart attack, stroke, renal failure, and pays a lump-sum benefit to the insured upon the diagnosis (and survival) of any of the illnesses covered by the policy.
Which of the following is NOT a term for the period of time during which the annuitant or the beneficiary receives income? a)Annuitization period b)Pay-out period c)Liquidation period d)Depreciation period
d)Depreciation period The "annuitization period" is the time during which accumulated money is converted into an income stream. It is also referred to as the annuity, liquidation or pay-out period.
Which of the following is true about the premium on the children's rider in a life insurance policy? a)It decreases when the oldest child reaches the age of 21. b)It increases when a newborn baby is added to the policy. c)It decreases when an adopted child is added to the policy. d)It remains the same no matter how many children are added to the policy.
d)It remains the same no matter how many children are added to the policy. The premium does not change on the inclusion of additional children; it is based on an average number of children.
What describes the specific information about a policy? a)Illustrations b)Buyer's guide c)Producer's report d)Policy summary
d)Policy summary A policy summary describes the features and elements of the specific policy for which a person is applying.
Which of the following will be included in a policy summary? a)Copies of illustrations and application b)Comparisons with similar policies c)Primary and secondary beneficiary designations d)Premium amounts and surrender values
d)Premium amounts and surrender values A policy summary must be delivered along with the policy and will provide the producer's name and address, the insurance company's home office address, the generic name of the policy issued, and premium, cash value, surrender value and death benefit figures for specific policy years.
Which is true regarding obtaining underwriting sources? a)The insurer does not need to inform the applicant of how the information is gathered; informing only of the source is sufficient. b)The insurer only needs to inform the applicant of how the information is being gathered; it is not necessary to disclose the sources. c)It is illegal to obtain information from outside sources in order to determine an applicant's insurability. d)The applicant must be informed of the sources contacted and how the information is being gathered.
d)The applicant must be informed of the sources contacted and how the information is being gathered. It is required by law that an insurer informs the applicant of all sources that will be contacted in determining the applicant's insurability, in addition to how the information will be gathered.
If a business wants to buy a disability income policy on a key employee, which of the following is considered the beneficiary? a)The insurer b)The employee c)The producer d)The employer
d)The employer In key person disability insurance purchased by a business, the business is the policyowner and the beneficiary, and the key person is the insured.
Which of the following is correct regarding selecting a primary care physician in a PPO plan? a)An insured must receive pre-certification prior to visiting a preferred provider. b)Insureds typically pay lower out-of-pocket costs for out-of-network providers. c)Out-of-network providers may be used for an additional premium. d)The insured may choose medical providers not found on the preferred list. In a PPO, all network providers are considered "preferred." An insured has the option to visit out-of-network providers, but the insured's out-of-pocket costs may be higher.
d)The insured may choose medical providers not found on the preferred list. In a PPO, all network providers are considered "preferred." An insured has the option to visit out-of-network providers, but the insured's out-of-pocket costs may be higher.
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin? a)On the designated effective date b)On the application date c)When the agent submits the application to the company and the company issues a conditional receipt d)When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
d)When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health If the initial premium is not paid with the application, the agent will be required to collect the premium at the time of policy delivery. In this case, the applicant will most likely need to fill out a Statement of Good Health.
When is the earliest a policy may go into effect? a)When the first premium is paid and the policy has been delivered b)When the insurer approves the application c)After the underwriter reviews the policy d)When the application is signed and a check is given to the agent
d)When the application is signed and a check is given to the agent The policy can be effective as early as the date of the application, if the premium is submitted with the application and the policy is issued as applied for.
