ch 2 ad banker
Which of the following is included in Part II of a Life Insurance Application? A Date of birth B Marital status C Family member's age and cause of death D Gender
C Family member's age and cause of death
Premiums for life insurance are based on all of the following, except: A Expected morbidity B Expected mortality C Interest D Expenses
A Expected morbidity
Part 1 of the application consists of all of the following information, except: A Medical status of immediate family members, their ages and causes of death B Occupation C Place of residence D Gender
A Medical status of immediate family members, their ages and causes of death
Which of the following is a policy not issued with a rating? A Preferred Rate B Flat Rate C Tabular Rate D Lien Plan
A Preferred Rate
California law requires that the purchaser of life insurance be provided with a copy of the Buyer's Guide to Life Insurance not later than: A The time of policy delivery B The first policy anniversary C One month following the first premium due date D The date of application
A The time of policy delivery
Expense loading ___________ from company to company. A Varies B Is higher C Is lower D Is the same
A Varies
What type of receipt provides that coverage is effective as of the date of application or date of completed medical exam (if required), whichever is later, as long as the insurer would have issued the policy as standard or better? A Trial B Conditional C Temporary D Guaranteed issue
B Conditional
The replacement rules apply to which one of the following? A Conversion of an existing policy B Proposed life insurance that is to replace life insurance issued by a different insurer C Group life insurance or annuities D Credit life insurance
B Proposed life insurance that is to replace life insurance issued by a different insurer
The replacement rules apply to which one of the following? A Credit life insurance B Proposed life insurance that is to replace life insurance issued by a different insurer C Conversion of an existing policy D Group life insurance or annuities
B Proposed life insurance that is to replace life insurance issued by a different insurer
Which of the following is used by an insurer to collect information from the applicant/insured for underwriting purposes? A A receipt B A rider C An application D An amendment
C An application
When an insured decides to change her mode of premium payment from monthly to annually, the total premium due would: A Remain the same B Increase C Decrease D Fluctuate
C Decrease
In a replacement transaction, the insurer that is having its policy replaced is known as the _______ insurer. A Insolvent B Conserving C Existing D Replacing
C Existing
The income-earning ability lost to dependents by the insured's premature death is a way to evaluate an individual's insurance needs. This method is known as the: A Family Values Approach B Future Earning Value Approach C Human Life Value Approach D Needs Analysis Approach
C Human Life Value Approach
Interest earned on premiums paid to an insurer helps to ________ the premiums charged. A Increase B Stabilize C Lower D Standardize
C Lower
In order to receive a policy dividend, the policy owner must own a __________ policy. A Industrial B Ordinary C Participating D Group
C Participating
A completed application and a check were submitted by a producer to an insurer on behalf of the applicant. A conditional receipt was given. The insured died prior to the insurer issuing the policy, however the check was no good. What is the result? A The amount of the premium will be deducted from the claim payment B The claim will be paid only if it can be shown that the funds were in the account at the time the check was written and given to the producer C Since the check did not clear the bank there is no coverage D The insurer will pay the claim once they receive a new check
C Since the check did not clear the bank there is no coverage
In order for an insurance company to determine if it will issue a policy, what document must always be submitted for review? A A copy of the applicant's driver's license B A premium check C The application D A conditional coverage receipt
C The application
When reviewing an application, the underwriter decides to reclassify the risk. What does that mean for the client? A The mode could increase or decrease B The death benefit could increase or decrease C The premium could increase or decrease D The policy period could lengthen or shorten
C The premium could increase or decrease
If a policy is not approved as applied for, the insurer may make: A An offer to the insured B The producer redo the application to get the policy issued as originally applied for C An acceptance to the applicant/insured D A 'counteroffer' to the applicant
D A 'counteroffer' to the applicant
A (an)_________ is used when the insured's age, medical history, or amount of coverage does not require a medical exam for underwriting purposes. A Inspection report B Short form C Agent's report D Nonmedical application
D Nonmedical application
