Underwriting and Policy Issue- Life insurance
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? Guaranteed Insurability rider Aviation exclusion Impairment rider Accidental Death Benefit rider
Aviation exclusion
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT: Signed HIPAA disclosure Signed amendment Signed statement of Good Health The required premium
Signed HIPAA disclosure
On delivery of a policy, a signed statement of good health is typically requested if: A conditional receipt was given to the applicant The quarterly premium payment mode was selected The policy contains a guaranteed insurability rider The application was submitted without the initial premium
The application was submitted without initial premium
Question 36Select the appropriate response Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? Premium will be fully refunded minus a surrender charge Policy was not returned within the free-look period, premium will not be refunded Policy was returned within the free-look period, premium will be fully refunded Premium will be fully refunded minus a prorated amount for the period of February 7 - February 13
Policy was returned within the free-look period, premium will be fully refunded
The underwriting process involves all of these, EXCEPT for: Credit report Policy loan Risk classification Application
Policy loan
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n): Federal Fair Credit Act Violation Title 18 Fraud violation Anti-Money Laundering violation Unfair Trade Practice violation
Anti money laundering violation
Before a life insurance policy is issued, which of these components of the contract is required? Applicant's signature on application Beneficiary's signature A conditional receipt Attending Physician Statement (APS)
Applicant's signature on app
On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take? Collect initial premium Collect initial premium along with a signed health statement Explain to the applicant the policy is no longer in effect due to change in health condition Collect initial premium and leave a binding receipt
Collect initial premium along with a signed health statement
Which of these do NOT constitute policy delivery? Policy mailed to applicant Policy mailed to agent Policy delivered to the applicant by the agent Policy issued with a rating
Policy issued with a rating
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? Geographical location Source of income Risk classification Marital status
Risk classification
Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? Risk classification Warranty review Insurable interest Inspection report
Risk classification
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 issued a voidable policy committed an act of fraud assigned the risk to a reinsurer
Waived one of its legal rights
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective? When the policy is issued The date of policy delivery When the conditions of the receipt are met The date the sales appointment was set
When the conditions of the receipt are met