chapter seven
When must a producer provide disclosure about information practices to an applicant?
Prior to or at the time of signing the application
Which report contains information regarding an individual's general reputation and credit standing?
Consumer report
What must be given to a life insurance applicant when the agent receives an application and the initial premium?
Conditional receipt
A policy owner pays the first annual premium for a 50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?
Beneficiary receives 50,000 income tax free
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective?
Date of issuance of the conditional receipt
A signed good health statement may be requested by a life producer at the time of
Policy delivery
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
the medical information bureau consist of members from which group
insurance companies
Where is the difference between a standard risk and a substandard risk reflected?
premium charges
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
