Chapter 5: Life Underwriting

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when

P receives the policy and pays the premium

Upon DELIVERY of a rated LIFE INSURANCE POLICY, the PRODUCER must obtain each of the following EXCEPT?

Signed HIPAA disclosure

Any CHANGES made on the APPLICATION require the who's INITIALS?

Applicants

All of the following are part of the underwriting process EXCEPT?

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

When an insurance application is taken by a producer, which of these statements is true?

Any changes made on the application require the applicant's initials.

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 the application

Who is NOT required to sign a life insurance application?

Beneficiary

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.

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

Which FEDERAL LAWallows an insurer to OBTAIN an INSPECTION REPORT on a potential insured?

Fair Credit Reporting Act

An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?

Gender

On January 8, an applicant filled out and 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

Which of these factors do not play a role in the UNDERWRITING of a LIFE INSURANCE POLICY?

Martial Status

On delivery of a policy, a signed statement of good health is typically requested if:

The application was submitted without the initial premium.

The reason for backdating a policy is

To obtain a premium rate based on an earlier age.