Insurance Licensing Chapter 1

Change any incorrect statement on the application be personally initialing next to the correct statement

All of the following are duties and responsibilities of producers at the time of application except:

The beneficiary will receive the full death benefit if it is determined that the applicant qualified for the policy

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant dies the following day, which of the following is true?

Aleatory

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

The insured will need a written consent if the insurer

An insured wants to transfer his personal insurance policy to a friend. Under what conditions would this be possible?

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:

Unilateral

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

The person must have at least completed secondary education

In terms of partied to a contract, which of the following does NOT describe a competent party?

Risk

Insurance is the transfer of

Premium receipt

Most agents try to collect the initial premium for submission with the application. When an agent collects the initial premium from the applicant, the agent should issue the applicant a

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks late as requested. When does the policy coverage become effective?

Application

When an insurer begins underwriting procedures for an applicant, what will be the main source of underwriting information

At the time of application

When must insurable interest exist in a life insurance policy?

Their premiums are lower

Which is generally true regarding insureds who have been classified as preferred risks?

Aleatory

Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

Consumer report

Which of the following include information regarding a person's credit, character, reputation, and habits?

Counteroffer

Which of the following is NOT an essential element of an insurance contract?

Standard

Which of the following is a risk classification used by underwriters for life insurance?

The applicant has a prior felony conviction

Which of the following would qualify as a competent party in an insurance contract?

Medical Information

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

Insurers

Who makes up the Medical Information Bureau?