Xcel 6 Life Underwriter Exam

All are true statements regarding the underwriting process, EXCEPT:

AIDS and HIV virus exams can be conducted in a discriminatory fashion

Any changes made on an insurance application requires the initials of whom?

Applicant

Before a life insurance policy is issued, which of these components of the contract is required?

Applicant's signature on application

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

At the time of application

A pilot applies for Life insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. The pilot declines the additional premium modification. The insurer will then likely issue the coverage with a(n)

Aviation Exclusion

T cash surrenders a recently-issued whole life policy. He also requests that the proceeds be payable to an unrelated third part) T would likely be red-flagged for violation of

anti-money laundering rules

T is given a receipt after completing a life insurance application and paying the initial premium. Under this situation, T's coverage is

conditional, depending on the insurer's underwriting guidelines

What is the purpose of the U.S.A. Patriot Act?

detect and deter terrorism

A(n) _______ contained in a life insurance policy states that the policy will NOT cover certain risks.

exclusion

An underwriter determines that a life insurance applicant's risk should be reclassified due to a health issue. This policy may be issued with a(n):

extra premium

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:

probability of making timely premium payments

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

the initial premium

The USA Patriot Act was enacted in:

2001

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

P has recently signed an application for insurance. The insurer MUST advise her in writing that an investigative consumer report may be conducted according to the

Fair Credit Reporting Act

A life insurance application may be rejected on the basis of all of these factors EXCEPT

Gender

Which of these factors do NOT play a role in the underwriting of a life insurance policy?

Marital status

The entity whose sole purpose is sharing medical data among its member companies is called the

Medical Information Bureau (MIB)

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:

National Association of Insurance Commissioners (NAIC)

Which of these do NOT constitute policy delivery?

Policy issued with a rating

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Policy was returned within the free-look period, premium will be fully refunded

A Medical Information Report (MIB) report may disclose which of the following:

Prior use of marijuana

All of these are considered sources of underwriting information about an applicant, EXCEPT:

Rating Services

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

Risk classification

Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?

The initial premium was NOT submitted with the application

Why is an applicant's signature required on a life insurance application?

To attest that the statements on the application are accurate to the best of the applicant's knowledge

Which parts of a life insurance policy are guaranteed to be true?

Warranty

When does a life insurance contract become effective if the initial premium is not collected during the application process?

When producer delivers policy and collects initial premium

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met