Completing the application, underwriting, and delivering the policy

An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of

A STOLI policy

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

Inspection report

Stranger-originated life insurance policies are in direct opposition to the principle of

Insurable interest

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report

May be informed of the source of the report

Which part of an insurance application would contain information regarding the cause of death of the applicant's deceased relatives?

Medical information

If an insurer issued a policy based on the application that had unanswered questions, which of the following will be TRUE? A The policy will be void. B The insurer may deny coverage later, because of the information missing on the application. C The policy will be interpreted as if the insurer waived its right to have an answer on the application. D The policy will be interpreted as if the insured did not have an answer to the question.

The policy will be interpreted as if the insurer waived its rights to have an answer on the application

Whose responsibility is it to make certain that an application for insurance is filled out completely and correctly?

The producer

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant

With the policy

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained?

3 days

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

Unilateral

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT A Consideration. B Legal purpose. C Offer and acceptance. D Conditions.

Conditions

Which of the following is NOT an example of a valid insurable interest? A Business partners in each other's lives B Employer in key employee's life C Child in parents' lives D Debtor in the life of the creditor

Debtor in the life of the creditor

An applicant is denied insurance because of information found on a consumer report. What requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

Fair credit reporting act

The Medical Information Bureau (MIB) was created to protect

Insurance companies from adverse selection by high risk persons.

which statement that is guaranteed to be true and if untrue may breach an insurance contract

warranty