Insurance Licensing Chapter 1
Change any incorrect statement on the application be personally initialing next to the correct statement
All of the following are duties and responsibilities of producers at the time of application except:
The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy
An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant dies the following day, which of the following is true?
Aleatory
An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?
The insured will need a written consent if the insurer
An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?
Erase the incorrect answer and record the correct answer
If a change needs to be made to the application for insurance, the agent may do all of the following except:
Unilateral
If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?
The person must have at least completed secondary education
In terms of partied to a contract, which of the following does NOT describe a competent party?
Risk
Insurance is the transfer of
Premium receipt
Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a
As of the application date
The full premium was submitted with the application for life insurance, and the policy was issued two weeks late as requested. When does the policy coverage become effective?
Application
When an insurer begins underwriting procedures for an applicant, what will be the main source of underwriting information
At the time of application
When must insurable interest exist in a life insurance policy?
Their premiums are lower
Which is generally true regarding insureds who have been classified as preferred risks?
Aleatory
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
Consumer report
Which of the following include information regarding a person's credit, character, reputation, and habits?
Counteroffer
Which of the following is NOT an essential element of an insurance contract?
Standard
Which of the following is a risk classification used by underwriters for life insurance?
The applicant has a prior felony conviction
Which of the following would qualify as a competent party in an insurance contract?
Medical Information
Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives
Insurers
Who makes up the Medical Information Bureau?