Life Insurance and Health Completing the Applacation
Stranger-originated like insurance policies are in direct opposition to the principle of
Insurable interest
All of the following are duties and responsibilities of the producers at the time of the application EXCEPT
Change any incorrect statement on the application by personally initialing next to the corrected statement.
The proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the health benefit to the beneficiary if the policy is approved. This is an example of what kind of contract?
Conditional
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Which of the following included information regarding a persons credit, character, reputation, and habits?
Consumer report
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 sought medical attention. Which of the following will explain the reason a death benefit claim is denied
Material misrepresentation
Upon policy delivery, the producer may be required to obtain any of the following EXCEPT
Signed waiver of premium
In which of the following examples would a contract between an insurer and prospective insured be legal
The applicant has a prior felony conviction
Which of the following is NOT the consideration in a policy?
The application given to a prospective insured
An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,
The beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for.
In forming an insurance contract, when does acceptance occur
When an insurer's underwriter approves coverage
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
warranty
The Federal Fair Credit Reporting Act
Regulates consumer reports
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 the policy is issued, what would be the policy's effective date?
The date of the medical exam
If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE?
The policy will be interpreted as if the insurer waived its right to have an answer on the application
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?
When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable Statement of Good Health
Insurance is a contract by which one seeks to protect another from
loss
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
When must insurable interest exist in a life insurance policy
At the time of application
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material
Why should the producer personally deliver the policy when the first premium has already been paid?
To help the insured understand all aspects of the contract
