Life Insurance Underwriting and Policy Issue
When a policy owner cash surrenders a universal life insurance policy in its early years, this may be considered a red flag for a(n):
Anti-money laundering violation
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
Set up a meeting with the applicant to answer the remaining questions
When an insurance application is taken by a producer, which of these statements is true?
Any changes made on the application require the applicant's initials
Which Federal law allows an insurer to obtain an inspection report on a potential insured?
Fair Credit Reporting Act
The underwriting process involves all of these, Except for:
Policy loan
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When producer delivers policy and collects initial premium
Any changes made on an insurance application requires the initials of whom?
applicant
Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of:
$10,000
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
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
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
applicant's physician
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
free-look period has expired
Which of these factors do not play a role in the underwriting of a life insurance policy?
marital status
An incomplete life insurance application submitted to an insurer will result in which of these actions?
Application will be returned to the writing agent
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