Chapter exam-life underwriting

In what situation could an insurance policy's coverage be modified?

Applicant is a substandard risk

The principal source of information concerning an applicant's identity, age, and marital status is found in the

Completed application

What must be given to a life insurance applicant when the agent receives an application and the initial premium? Agent's report Conditional receipt Commission disclosure Good health statement

Conditional receipt

Which report contains information regarding an individual's general reputation and credit standing?

Consumer report

When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? Consumer report Eye examination Urine sample Blood sample

Eye examination

When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?

Give notice, explain, and allow opting out

An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?

Good health statement At policy delivery, a good health statement may need to be signed by the insured to ensure there has NOT been any adverse medical conditions since the time of application.

The medical information Bureau consists of members from which group

Insurance companies insurance companies make up the membership of the Medical Information Bureau.

All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT Acquire a statement of good health signature Gather the initial premium Review policy with applicant Leave a conditional receipt with client

Leave a conditional receipt with client

Field Underwriting by a producer

May result in the disclosure of hazardous activity of the applicant.

When must a producer provide disclosure about information practices to an applicant?

Prior to or at the time of signing the application A producer must give a disclosure notice about information practices to an applicant prior to or at the time of signing the application.

Which of these is not considered the responsibility of a producer during the underwriting process

Selecting the final approval date Responsibilities of a producer during underwriting process: -collecting additional medical information if needed -promptly sending the completed application to the insurance company -forwarding any material personal observations to the insurer

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 conditions of the receipt are met A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect.

When does the producer give a premium receipt for a life insurance application

When the initial premium has been paid with the application

An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT

living in a rural area where an applicant lives is NOT a factor in determing preferred rates