ExamFX Completing the application, underwriting, and Delivering the Policy

Warranty

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

The Fair Credit Reporting Act

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

Premium amounts and surrender values

Which of the following will be included in a policy summary?

Application

An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave it basis are classified as

Erase the incorrect answer and record the correct answer.

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT A. Erase the incorrect answer and record the correct answer B. Draw a line through the first answer, record the correct answer, and have the applicant initial the change. C. Note on the application the reason for the change. D. Destroy the application and complete a new one.

The completed application is submitted

In insurance, an offer is usually made when

Loss

Insurance is a contract by which one seeks to protect another from

Adhesion

Insurance policies are not drawn up through negotiations, and an insured has little to say about it provisions. What contract?

A presentation of nonguaranteed elements of a policy

The term "illustration" in a life insurance policy refers to

When the application is signed and a check is given to the agent

When is the earliest a policy may go into effect?

A policy summary

Which of the following documents delivered to the policyowner includes information about premiums amounts, cash values, surrender values and death benefits for specific policy years?

Buyer's Guide

Which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision-making process?

Conditional

the proposed insured makes the premium payment on a new insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what kind of a contract?