Insurance Life( completing the application, underwriting, and delivering the policy) Q and A

An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering A

Inspection report

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom

The producer

An insurance contract must contain all of the following to be considered legally binding EXCEPT

Beneficiary's consent

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

Change any incorrect statement on the application by personally initialing the next corrected statement

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to

Charge a higher premium

Which of the following information about the applicant is NOT included on Part 1 of the application for insurance

Medical background

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If teh policy is issued, what would be the policy's effective date

The date of medical exam

Which of the following would provide an underwriter with information concerning an applicant's health history

The medical information Bureau

Why should the producer personally deliver the policy when the first premium has already been paid

To help teh insured understand all aspects of the contract

An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not wish to give the agent teh initial premium, and no conditional receipt is issued. When will coverage begin

When the agent delivers teh policy, collects the initial premium, and the applicant completes an acceptable statement of good health

Which of the following best describes the MIB

it is a nonprofit organization that maintains underwriting information on applicants for life and health insurance

When would a misrepresentation on the insurance application be considered fraud

if it is intentional and material

An Insurer that holds a certificate of Authority in the state in which it transacts business is considered a/an

Authorized insurer

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated

Consideration

What is the major difference between Stock company and mutual company

Ownership

A perspective insured receives a conditional receipt but dies before the policy is issued. the insurer will

Pay the policy proceeds only if it would have issued the policy

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

As of the application date

In insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe

Unilateral

Representations are written or oral statements made by the applicant that are

considered true to the best of teh applicant's knowledge

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

contracts of adhesion

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this describe?

Conditional

Which of the following types of risk will result in the highest premium?

Substandard risk

What is the purpose of the buyer's guide

To allow the consumer to compare the costs of different policies

Which of the following will be included in a policy summary

premium amounts and surrender values

How is it determined whether an insurer is allowed to write business in a state

The insurer's domicile or location of incorporation will determine whether a company is domestic, foreign or alien

The insurer discovered that one of the applicants for life insurance missed a couple of questions on the application. What should the insurer do with the application

Return to the applicant for completion

When must insurable interest exist in a life insurance policy

At the time of application

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

Signed waiver of premium