Quiz 1
What is the time frame for filing relevant suspicious activity report?
30 days of initial discovery of a suspicious transaction
Which of the following is a risk classification used by underwriters for life insurance....
Standard
Which of the following CANNOT be included along with illustrations used to sell life insurance?
Vanishing premium information
Which of the following would be considered a non medical insurance application?
An application on which the medical information is completed by the applicant and the agent ONLY
In classifying a risk the home office underwriting department will look at all of the following except?
Applicants past income
Which of the following is the basic source of information used by the company in the risk selection process?
Application
If an applicant for life insurance policy found to be substandard risk, the insurance company is most likely to...
Charge a higher premium
Full premium was submitted with the application for life insurance and the policy was issued 2 weeks later as requested when does the policy coverage become effective?
Date the application was paid - if the full premium was submitted w/ the application and the policy was issued as requested, the policy coverage effective date would generally coincide with the date of application.
When possible, what should insurers strive to eliminate from illustrations
Footnotes/caveats
The medical information bureau was credited to protect....
Insurance companies from adverse (prone risks) selection by high risks persons
An advertisement must accurately represent which of the following?
Insurers assets, corporate structer, financial standings
As a field underwriter a producer is responsible for all of the following tasks except?
Issue the policy that is requested - the producer has a duty to solicit business that will fall within the underwriting guidelines and represent profitable business to the insurer to help prevent adverse selection.
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy
In the underwriting process, it was determined that the applicant for the life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium?
It will likely be higher because the applicant is a substandard risk
An applicant who receives a preferred risk classification qualifies for....
Lower premiums than a person who receives a standard risk
Part 2 of the application for life insurance provides questions regarding all of the following except?
Other insurance coverages (-asked in part 1 of App) Ask about... *recent surgeries *family health history *alcohol/tobacco consumption
Most agents try to collect the initial premium for submission with the app. When an agent collects the initial premium from the app, the agent should issue the app a...
Premium receipt
If an insured changes his payment plan from monthly to annually what happens to his total premium?
Reduce the premium amount -because the insuerer would have the entire premium to invest for a full year.
Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?
Return the app to the applicant for completion
Which of the following best details the underwriting process for life insurance?
Selection Class Faction Rating of risks
An applicant signs an app for $25k life insurance policy, pays initial premium and receives a conditional receipt. If the applicant is killed in a automobile accident the next day....
The beneficiary would receive the $25k if it was determined that the insured qualified for the policy applied for.
The responsibility of making certain that an application for insurance is filled out correctly completely and the best of his/her knowledge is the responsibility of whom?
The producer
In forming an insurance contract, when does acceptance usually occur?
When an issuer underwriter approves coverage