Chapter Exam - Life Underwriting

Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of:

$10,000

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)

Anti-Money Laundering violation

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

Applicant's physician

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

Conplete the application and review the information with he customer prior ti obtaining the customer's signature, then send the aoplication off to the insurance company

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

Exclusion

On Jan 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 Jan 14 and issued the policy Jan 15. The producer delivered the policy on Jan 26 and collected the first premium. When did the coverage become effective?

Jan 26

Which of these do NOT constitute policy delivery?

Policy issued with a rating

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

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

applicant

The USA Patriot Act was enacted in:

2001

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

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

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

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

What is the purpose of the USA Patriot Act?

detect and deter terrorism