Lesson 3: underwriting and policy issue

Under the patriot act insurers are required to report receipts OK cash payments in excess of

$10,000

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine

probability of making timely premium payments

And insurance company cannot reject a prospective insured's life application on the basis of which of the following factors?

Gender

What is being delivered during a policy delivery?

Insurance contract to the proposed insured

What is the purpose of a policy summary?

It highlights the critical parts of the policy issued

All of these are considered sources of underwriting information about an applicant except

Rating Services ( what is considered is Inspection report, credit report, medical information bureau)

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

inspection report

Do US patriot act was in acted in

2001

With a policy owner cash surrender is a universal life insurance policy in his early years it may be considered a red flag for a?

Anti-money laundering violation

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

Applicant's signature on application

A student pilot Can pay a regular premium cost for her insurance policy with an addition of which of the following?

Aviation exclusion

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

And underwriter determines that an applicants risk should be recategorized Due to a health issue. This policy may be issued with a

Exclusion for a medical condition

Which federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

From what authority drives the requirement that and insurance application contains a disclosure stating that an investigative Consumer report may be obtained on an applicant?

Fair credit reporting act

What action should a producer take if the initial premium is not submitted with the application?

Forward the application to the insurer without the initial premium

The underwriting process involves all of these except for

Policy loan

A medical information report (MID)Report may disclose which of the following

Prior use of marijuana

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?

Risk classification

All are true statements regarding underwriting process

Sign consent from the applicant must be provided in order to test for AIDS and HIV virus, the cost of any examination is paid by the insurer, the original application is the primary source of information used in the underwriting process) (((Aids and HIV virus exams cannot be conducted in a discreet fashionMust be conducted in uniform fashion)))

On delivery of a policy a signed Statement of good health is typically required if

The application was submitted without initial premium

Kay is an agent who takes an application for Individual life insurance and except the check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved when will the coverage be effective?

The date the agent delivers the policy and collect the initial premium and obtains a good health statement from the insured

Why is an applicant signature required on the life insurance policy application?

To attest That the statements on the application or accurate to the best of the applicants

ABC insurance company has excepted a life insurance application which contains unanswered questions. The company that makes the application part of the life contract. In the situation the insurer has

Wavered one of its legal rights

When does a life insurance contract become affective if the initial premium Is not collected during the application process?

When producer deliver producer and collects initial premium

What is the purpose of patriot act

to deter and punish terrorist acts in the United States and around the world.

Which of these do not constitute Policy delivery?

Policy issued with a rating

And applicants medical information received from the medical information bureau(MIB) May be furnished by the

Applicants physician