Unit 1- Quiz Questions

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

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer report

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?

Date of medical exam

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The consumer's associates, friends, and neighbors provide the report's data.

Which of the following is a statement that is guaranteed to be true, and if untrue may breach an insurance contract?

Warranty

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

5 days

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

conditional