Life Insurance Underwriting and Policy Issue
In what situation could an insurance policy's coverage be modified? Applicant is a preferred risk Applicant is a substandard risk Applicant is a standard risk Applicant is uninsurable
Applicant is a substandard risk
When a producer submits an application that reveals personal information regarding the applicant, who supplies the privacy notice? Producer Insurer Underwriter Fiduciary
Producer
What must be given to a life insurance applicant when the agent receives an application and the initial premium? Agent's report Conditional receipt Commission disclosure Good health statement
Conditional receipt
Mike applied for life insurance and was issued a conditional receipt. He is later found to be an acceptable risk and is issued a policy. What is considered to be the effective date of this insurance contract? Date the conditional receipt was issued Date the policy was approved Date of policy delivery Date the insurer received the application
Date the conditional receipt was issued
Which of these is NOT an underwriting responsibility of a life insurance agent? Asking relevant questions concerning an applicant's avocations Requesting an attending physician's report (APR) Ordering an inspection report Establishing the applicant's final rate classification
Establishing the applicant's final rate classification
The initial premium for a life insurance policy is typically handled in what way? The applicant mails it to the insurer after the policy has been approved It is typically obtained by the producer and sent to the insurer It is typically forwarded to the insurer by the applicant The producer pays it from any commissions received
It is typically obtained by the producer and sent to the insurer
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT Acquire a statement of good health signature Gather the initial premium Review policy with applicant Leave a conditional receipt with client
Leave a conditional receipt with client
When does the producer give a premium receipt for a life insurance application? When the application has been approved When the initial premium has been collected with the application During the medical exam When the completed application has been collected
When the initial premium has been collected with the application