Chapter 5

Which of these do NOT constitute policy delivery?

Policy issued with a rating

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

Warranty

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

Applicant

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

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

What action should a producer take if the initial premium is NOT submitted with the application?

Forward the application to the insurer without the initial premium

Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?

Risk classification

K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

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

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

exclusion for the medical condition