Quiz 1 : Completing the Application, Underwriting and Delivering the Policy
B applies for an insurance policy on July 14, pays the first premium, and receives a conditional receipt. The producer arranges for B to take a physical on July 20, and the policy is approved by the home office on August 18. On August 21 the producer delivers the policy to B. When did B's coverage begin?
July 20
In determining life insurance risks, an underwriter may classify risks as any of the following EXCEPT
Prorated; Risk Categories are Standard, Substandard, and Preferred
The practice of terminating an existing policy or letting it lapse and exchanging it with a new one
Replacement
Statements believed to be true to the best of one's knowledge are
Representations
Who must sign the application?
The agent and the owner
When must insurable interest exist
When the agent helps the applicant complete the application
All of the following are examples of Insurable interest EXCEPT a a) Parent insuring his/her child b) Railroad insuring the lives of its passengers c) Business insuring the life of its CEO d) Mortgage Company insuring life of a creditor
b) Railroad insuring life of its passengers
The Do Not Call Registry prohibits telemarketing sales call later than
9pm
The Medical Information Bureau is all of the following EXCEPT
An Independent investing firm
The name of the federal law governing the collection, dissemination, and the use of consumer information is
Fair Credit Reporting Act
Changes to a written life insurance application must be
Initialed by the applicant
How would an unanswered question on an application affect the death claim on the policy?
The death claim would be paid because the insurer waived the right to obtain the missing information
If an agent accepts a completed application without the first premium, when does coverage become effective for the insured?
When the policy is delivered and the first premium is paid
A field underwriter has all of the following responsibilities EXCEPT to a) Deliver the policy b) Issue the policy c) Collect the initial Premium d) Complete the agent's report
b) Issue the policy
