Chapter 2 Quiz
Which of the following statements is NOT true concerning insurable interest as it applies to life insurance?
A debtor has an insurable interest in the life of a lender.
Which of the following includes information regarding a persons credit, character, reputation and habits
Consumer report
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Consumer report
Which of the following is NOT an example of insurable interest
Debtor in creditor The three recognized areas in which insurable interest exists are as follows: a policyowner insuring his or her own life, the life of a family member (relative or spouse), or the life of a business partner, key employee, or someone who has a financial obligation to them. A debtor does not have an insurable interest in the creditor.
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
Which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
Which of the following would provide an underwriter with information concerning an applicants health history?
Medical Information Bureau
Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT
Other insurance coverages
The Federal Fair Credit Reporting Act
Regulates consumer reports
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
Which of the following is NOT required on an illustration used in the sale of a life insurance policy?
The name of the primary and secondary beneficiaries
An agent and an applicant for a life insurance policy fill out and sign the application. However, the applicant does not with to give the agent the initial premium, and no conditional receipt is issued. When will coverage begin?
When the agent delivers the policy, collects the initial premium, and the applicant completes and acceptable statement of good health.
Which of the following is basic source of information used by the company in the risk selection process?
application
If an insurer requires a medical examination of an applicant in connection with the application for life insurance, who is responsible for paying the cost of the examination?
insurer
Which of the following is a risk classification used by underwriters for life insurance?
standard