Insurance Life( completing the application, underwriting, and delivering the policy) Q and A
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering A
Inspection report
The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom
The producer
An insurance contract must contain all of the following to be considered legally binding EXCEPT
Beneficiary's consent
All of the following are duties and responsibilities of producers at the time of application EXCEPT
Change any incorrect statement on the application by personally initialing the next corrected statement
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 information about the applicant is NOT included on Part 1 of the application for insurance
Medical background
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 teh policy is issued, what would be the policy's effective date
The date of medical exam
Which of the following would provide an underwriter with information concerning an applicant's health history
The medical information Bureau
Why should the producer personally deliver the policy when the first premium has already been paid
To help teh insured understand all aspects of the contract
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 teh initial premium, and no conditional receipt is issued. When will coverage begin
When the agent delivers teh policy, collects the initial premium, and the applicant completes an acceptable statement of good health
Which of the following best describes the MIB
it is a nonprofit organization that maintains underwriting information on applicants for life and health insurance
When would a misrepresentation on the insurance application be considered fraud
if it is intentional and material
An Insurer that holds a certificate of Authority in the state in which it transacts business is considered a/an
Authorized insurer
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
Consideration
What is the major difference between Stock company and mutual company
Ownership
A perspective 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
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
As of the application date
In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe
Unilateral
Representations are written or oral statements made by the applicant that are
considered true to the best of teh applicant's knowledge
Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classifies as
contracts of adhesion
An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?
Conditional
Which of the following types of risk will result in the highest premium?
Substandard risk
What is the purpose of the buyer's guide
To allow the consumer to compare the costs of different policies
Which of the following will be included in a policy summary
premium amounts and surrender values
How is it determined whether an insurer is allowed to write business in a state
The insurer's domicile or location of incorporation will determine whether a company is domestic, foreign or alien
The insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What should the insurer do with the application
Return to the applicant for completion
When must insurable interest exist in a life insurance policy
At the time of application
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium