Life & Health Quiz 1

A prospective insured receives a conditional receipts and dies before the policy is issued. The company will A Automatically pay the policy proceeds B Pay the policy proceeds only if it would have issued the policy C Pay the policy proceeds up to an established limit D Not pay the policy proceeds under any circumstances

B

All of the following are requirements for life insurance illustrations EXCEPT A. Must differentiate between guaranteed and projected amounts B. Must be part of the contract C. May only be used as approved D. Must identify nonguaranteed values

B

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? A Return to the applicant for completion B Answer the missed questions for the applicant C Acknowledge the missed questions with a signature and continue the policy issue process D Proceed with issuing a policy

A

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 sough medical attention. Which of the following will explain the reason a death benefit claim in denied? A. Estoppel B. Material misrepresentation C. Waiver D. Utmost Good Faith

B

Insurance is the transfer of A. Hazard B. Peril C. Risk D. Loss

C

Which of the following best describes the process of policy delivery? A. After the insurer receives the application, it is forwarded to the underwriting department. After the application is approved and the policy is issued, the policy is delivered either in person or by mail B. After the underwriting department approves the application, the agent delivers the policy to the insured by certified or express mail only. C. After the insurer receives the application, the agent delivers the policy by certified or express mail only. The underwriting department then reviews the application to determine premium amounts. D. After the underwriting department approves the application, the prospective insured must sign a statement agreeing to the final terms of the contract. The agent then delivers the policy by certified or express mail only.

A

Which of the following entities established the Do-Not-Call Registry? A. The Consumer Protection Agency B. The Federal Trade Commission C. The Better Business Bureau D. The NAIC

B

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 a medical exam. If the policy is issued, what would be the policy's effective date? A The date of application B The date of medical exam C The date of policy delivery D the date of issue

B If the company acknowledges receipt of the premium with a conditional receipt, the policy is in effect on the date of the application or the date of the medical exam (whichever is later), provided that the applicant is found insurable at the rate applied for.

If a consumer requests additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply? A. 10 days B. 3 days C. 5 days D. 7 days

C

The National Do Not Call Registry was created to regulate A Insurance solicitors B Telemarketers C Field underwriters D Insurers

C

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 first of the month after the policy issue B. As of the policy issue date C. As of the application date D. As of the policy delivery date

C

An agent must do all of the following when delivering a new policy to the insured EXCEPT A. Explain the policy provisions, riders, and exclusions B. Collect any premium due C. Explain the rating procedures if the policy is rated differently than applied for D. Disclose commissions earned from the sale of the policy

D

If a loss occurs, insurance policies pay the proceeds to A. Applicant B. Insurer C. Agent D. Beneficiary

D

If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence? A. 7 am B. 8 am C. 9 am D. Noon

B

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be true? A The insurer may deny coverage later, because of the information missing on the application. B The policy will be interpreted as if the insurer waived its right to have an answer on the application. C The policy will be interpreted as if the insured did not have an answer to the question. D The policy will be void.

B