L9 quiz - important
Which of listed premium payment schedules would reflect the lowest overall premium
annual: no interest is being charged
If an insurer indicates that an illustration will be used, they must do which of the following
send a summary status report to the policy owner annually
The request for an attending physician's report must be accompanied by a copy of the signed authorization
signed authorization
The rules regarding life insurance policy illustrations are intended to ensure all of the following except
specifies both guaranteed and non-guaranteed elements remain unchanged for all years shown true: understandable by prescribing standard formats; do not mislead purchasers of life insurance and annuities; ensure that the disclosures that are required in connection to illustrations are specified
An illustration used to sell life insurance must include all of the following information except
the probability that illustrated non-guaranteed scenarios will occur True: generic policy name and form number; name and address of producer; label that addresses it as an illustration
A licensed life agents tells a prospect he is guaranteed the amount he will get in dividends. Being convicted of this misdemeanor could result in going to jail for 30 days
true
Which is true?
- life insurance can create an immediate estate - life insurance premiums can be paid in full or on a monthly basis
What required when applicant reveals conditions that require more info?
Attending Physician's report
Which of the following requires a reporting company to respond to a consumer's complaint that his file contains inaccurate information?
Fair Credit Reporting Act
If an applicant submits a blood test and the test verifies the applicant has AIDS, the insurance company cannot share this information with the applicant's doctor.
False: The insured's doctor is usually the person the insurance company tells
Insurers offering individual life insurance policies or annuities to senior citizens that use non-guaranteed elements in illustrations must provide a statement to that effect. Which of the following is correct regarding this statement?
Non-guaranteed elements must be in bold print
Preprinted illustrations used to sell non guaranteed individual annuity and life policies must show
Nonguaranteed values in bold print
Nonpreprinted illustrations selling non guaranteed individual life and annuity policies must include a statement providing the following information
The illustration is an illustration only and not a prediction of actual performance
The Fair Credit Reporting Act mandates that a credit reporting company responds to a consumer complaint when that company's credit report inaccurately reflects information about the consumer
True - memorize it
Non-participating policies
Will not pay a dividend
Which are elements of 'non-medical' applications?
a medical exam may not be needed answers to application questions could trigger a requirement to have a physical exam performed - underwriting always reserves the right to ask any potential insured to take a physical
All are required to be included in life insurance illustrations except
a statement that the benefits in the illustration is guaranteed Not: page number, name of insured, page number in comparison to all other pages
Non-participating life insurance policies provide all of the following except
dividends provide: settlement options; guaranteed premiums; death benefits
Which entity or entities financially support(s) the non-profit Medical Information Bureau?
insurance companies
Which of the following is true?
-policy dividends will be larger for a participating policy as compared to a non-par policy - policy dividends are considered a return of excess premiums paid
Which of following is not an acceptable risk to the underwriting department of the insurance company
all are acceptable risks substandard, standard, preferred
Insurers will not charge more than 25% of the annual premium if the current premiums are now paid quarterly
false: people who pay premiums on a mode other than annually will be charged a financing charge
Who are the members of the Medical Information Bureau?
life insurance companies
Members of the Medical Information Bureau are required to report
medical impairments found during the underwriting process
In establishing the premium rates for life insurance, insurers will use
morality, interest, expenses, reinsurance costs; P = MIXR
Compared to a yearly premium, a whole life insurance contract's quarterly premium will be
more
Sam's insurance policy pays a dividend. The agest that sold Sam the policy refers to the shareholders of the company as participating, therefore it is a .... insurer
mutual: mutual companies by definition pay dividends
What does the term non medical life insurance mean?
no physical examination is required
Life insurance illustrations showing premiums, values, credits or charges that are not determined at issue are demonstrating:
non-guaranteed elements
How can a policyholder's dividend be received?
paid in cash, draw interest, reduce premium
Which type of life insurance policy gives policy owner the right to share in insurer's surplus?
participating
If the owner of a life insurance policy elects to pay an annual premium, she will
pay less as compared to paying premiums every 6 months
Health insurers classify risks in different ways. Of the following, select the classification that would charge the highest premium
substandard
A policy owner has the right to change all of the following except
the dividend schedule: frequency of dividend payments is under control of insurer
Which of following is not a factor in determining the premium for a life insurance contract?
the number of new policy owners expected in the next anniversary year not: expense loading, interest, mortality