Quiz: Producer Responsibilities

Which of the following statements regarding the practice of backdating a life insurance application is correct? A. The policy premium is lower than it would be if the policy was issued with the actual date the application was signed. B. Most states allow a policy application to be backdated up to 12 months. C. The producer has the authority to approve the backdating of policy applications. D. The policyowner is not required to pay back premiums from the backdated issue date to the present.

A. The policy premium is lower than it would be if the policy was issued with the actual date the application was signed.

The activities a producer performs to support the insurance company in learning all it can about the applicant when seeking applications for insurance are generally called: A. field underwriting B. agency development C. fiduciary process D. due diligence

A. field underwriting

Which of the following statements about agent/producer responsibilities is correct? A. As long as the applicant understands the life insurance product being recommended, it is not necessary for the agent to be concerned with the product's suitability for the applicant. B. To policyowners, the agent who sold them their insurance coverage is clearly separate from, and does not represent, the insurer. C. Agents must always act ethically and professionally in all dealings with policyowners and future policyowners. D. How the agent conducts business has no bearing on the insurance company and directly impacts the agent's ultimate success.

C. Agents must always act ethically and professionally in all dealings with policyowners and future policyowners.

Which of the following statements about backdating life insurance applications is correct? A. The purpose for backdating an application is to qualify for a better underwriting classification. B. Backdating has no impact on the policy's premium, but it does result in the policy being issued with a cash value. C. Insurers normally allow an applicant to backdate a policy by up to 2 years. D. Only the insurance company, not the producer, can authorize the backdating of specific applications.

D. Only the insurance company, not the producer, can authorize the backdating of specific applications.