PRIMERICA - EXAM QUESTIONS SET

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

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

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

which of the following documents delivered to the policy owner includes information about premium accounts, cash values, surrender values and death benefits for specific policy years?

a policy summary

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is

conditonal

Representations are written or oral statements made by the applicant that are

considered to be true to the best of the applicant's knowledge

When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will

issue the policy anyway and pay the face value to the beneficiary

in the underwriting process, it was determined that the applicant for life insurance is in poor health and dangerous habits. Which is true considering the policy premium?

it will likely be higher because the applicant is substandard risk

An applicant who receives a preferred risk classification qualifies for

lower premiums than a person with standard risk

untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company are called

material misrepresentations

a prospective insured receives a conditional receipt but dies before the policy is issued. the insurer will

pay the policy only if it would have issued the policy

another name for substandard risk is

rated

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 a medical exam. If the policy is issued, when is its effective date?

the date of medical exam