Chapter 5: Exam questions
Which of the following statements is CORRECT about an agent who is taking an insurance application?
The agent should have the applicant initial any changes made on the application
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of
$10,000
The USA patriot act was enacted in:
2001
Before a life policy is issued, which of these contract elements is necessary?
A signed application by the prospect
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Inspection report
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
What is the purpose of a policy summary?
It highlights the critical parts of the policy issued
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?
January 26
The underwriting process involves all of these, EXCEPT for:
Policy loan
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
Set up a meeting with the applicant to answer the remaining questions
Why must an insurance applicant answer all questions on the application?
Statements and representations on the application are part of the consideration for issuing a policy
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
K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?
conditional
A(n) __________ contained in a life insurance policy states that the policy will NOT cover certain risks.
exclusion