Ch 5 Exam

Ace your homework & exams now with Quizwiz!

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)

Anti-Money Laundering violation

Before a life policy is issued, which of these components of the contract is required?

Applicants signature on application

what is the initial source of underwriting for an insurance policy

Application containing statements from the insured

A life insurance application must be signed by all of these EXCEPT

Beneficiary

What action should a producer take if the initial premium is NOT submitted with the application?

Forward the application to the insurer without the initial premium

The entity whose sole purpose is sharing medical data among its member companies is called the

Medical Information Bureau (MIB)

Which of these do NOT constitute policy delivery?

Policy issued with a rating

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

The USA Patriot Act was enacted in

2001

Before a life policy is issued, which of these contract elements is necessary?

A signed application by the prospect

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

the initial premium

why is an applicants signature required on a life insurance application

To attest that the statements of the application are accurate to the best of the applicants knowledge

which federal law allows an insurer to obtain an inspection on a potential insured?

fair credit reporting act

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

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?

Policy was returned within the free-look period, premium will be fully refunded

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

upon policy delivery a signed good health good health statement is requested from the applicant why would this be necessary

The initial premium was not submitted with the application

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

applicant's physician

what is being delivered during a policy delivery

insurance contract to the proposed insured

A $20,000 life insurance policy application is completed , however the producer does not collect the initial premium . At what point does the coverage go into effect?

when the applicant receives the policy and pays the initial premium


Related study sets

Chemistry of Life 1.02 FLVS (100%)

View Set

the-tired-potato 100 pg p/s MCAT

View Set

BUS/475: Integrated Business Topics - Week 4

View Set

Jordan midterm history flashcards 120

View Set

Greece: Archaic & Classical Period, Greece: Late Classical Period & Hellenistic Period, Survey of Art I - Day 9 - Classic Greece, Survey of Art I - Day 14 - Exam 2 Study Guide (Days 8-13), Survey of Art I - Day 10 - Late Classical, Hellenistic Period...

View Set