Life Insurance Underwriting and Policy Issue

A Medical Information Report (MIB) report may disclose which of the following

Prior use of marjuana

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has

waived one of its legal rights

The USA Patriot Act was enacted in

2001

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company

An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?

Gender

The underwriting process involves all of these EXCEPT for?

Policy loan

Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

What is the purpose of the U.S.A. Patriot Act?

detect and deter terrorism

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine

probability of making timely premium payments

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)

Exclusion for the medical condition

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

Fair Credit Reporting Act

Which of these actions should a producer take when submitting an insurance application to an insurer?

Inform insurer of relevant information not included on the application

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

Risk classification

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT

Signed HIPPA disclosure

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

at the time of application