Life: (2:1) Completing the Application, Underwriting, and Delivering the Policy

If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant A. Upon issuance of the policy. B. Within 30 days after the first premium payment was collected. C. Prior to filling out an application for insurance. D. With the policy.

D. With the policy.

Which of the following is TRUE regarding the annuity period? A. It may last for the lifetime of the annuitant. B. During this period of time the annuity payments grow interest tax deferred. C. It is also referred to as the accumulation period. D. It is the period of time during which the annuitant makes premium payments into the annuity.

A. It may last for the lifetime of the annuitant.

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 the policy is issued, what would be the policy's effective date? A. The date of application B. The date of medical exam C. The date of policy delivery D. The date of issue

B. The date of medical exam

Which of the following would help prevent a universal life policy from lapsing? A. Adjustable premium B. Corridor of insurance C. Target premium D. Face amount

C. Target premium

All of the following are duties and responsibilities of producers at the time of application EXCEPT A. Check to make sure that there are no unanswered questions on the application. B. Change any incorrect statement on the application by personally initialing next to the corrected statement. C. Explain the nature and type of any receipt the producer is giving to the applicant. D. Probe beyond the stated questions if the producer feels the applicant is misrepresenting or concealing information.

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

What is the purpose of a disclosure statement in life insurance policies? A. To protect agents and insurers against lawsuits B. To explain features and benefits of a proposed policy to the consumer C. To obtain important underwriting information from the applicant D. To help consumers compare policy prices

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

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? A. Corridor option B. Variable option C. Option A D. Option B

D. Option B - Under Option B the death benefit includes the annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases. At any point in time, the total death benefit will always be equal to the face amount of the policy plus the current amount of cash value.

When is the earliest a policy may go into effect? A. After the underwriter reviews the policy B. When the application is signed and a check is given to the agent C. When the first premium is paid and the policy has been delivered D. When the insurer approves the application

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