Completing the Application, Underwriting and Delivering Policy
The term illustration in a life insurance policy refers to?
A presentation of non-guaranteed elements of a policy
The term "Illustration " In the life insurance policy refers to?
A presentation of not guaranteed elements of a policy
And insured pays $100 premium every month for his insurance coverage yet the insured promises to pay 10,000 for a covered loss. What characteristic of an insurance contract does this describe?
Aleatory
The full premium was submitted with the application for life insurance policy was issued two weeks later as requested when does the policy coverage becomes effective?
As of the application date
And insured Holz a certificate of authority in the state in which it transacts business is considered a?
Authorized insurer
All of the following are duties and responsibilities of producers at the time of application which is explain the nature and type of any receipt, pro beyond stated questions, check to make sure that there are no unanswered questions on the application. Except
Change any incorrect statement on the application by personally initialing next to the corrected statement
If an applicant for a life insurance policy is found to be a substandard risk the insurance company is most likely to
Charge a higher premium
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements except
Conditions
Which of the following reports will provide the underwriter with the information about an insurance applicant credit?
Consumer report
Insurance policies are not drawn up through negotiations, and an insured has little to say about his provisions. What contract characteristic does this describe
Contract of Adhesion
Which of the following is not an example of a valid insurable interest?
Debtor in the life of the creditor
If a change needs to be made the application for insurance, the agent may 1. note on the application the reason for the change 2. destroy the application and complete the new one 3. draw a line through the first answer, record the correct answer, and have the applicant initial the change. Except
Erase the incorrect answer and record the correct answer
Which of the following best describes the aleatory nature of an insurance contract?
Exchange of unequal values
When will the misrepresentation on the insurance application be considered fraud?
If it is intentional and material
A life insurance policy has a legal purpose With following elements exist
Insurable interest and consent
The medical information bureau or am IB was created to protect?
Insurance companies from adverse selection by high risk persons
Who makes up the medical information bureau?
Insurers
Which of the following best describes the MIB (Medical Information Bureau)?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance
Untrue statements on the application unintentionally made by Insureds that, if discovered, would alter the underwriting decision of the insurance company, are called?
Material Misrepresentation
Which part of an insurance application with contain information regarding the cause of death of the applicants deceased relatives?
Medical information
Under the fair credit reporting act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will
Pay the policy proceeds only if it would have issued the policy
Which of the following will be included in a policy summary?
Premium amounts and surrender values
Most agents try to collect the initial premium for submission with the application. With an agent collect the initial premium from the applicant, the agent should issue the applicant a?
Premium receipt
If an agent fails to obtain an applicant signature on the application, the agent must
Return the application to the applicant for a signature
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
Upon policy delivery, the producer may be required to obtain any Number one delivery receipt number to statement of good health number three payment of premium except
Signed waiver of premium
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?
The Insurer
Which of the following is not the consideration in a policy?
The application given to a prospective insured
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policies effective date
The date of medical exam
An individual applied for an insurance policy and pay the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policies effective date?
The date of medical exam
If an insurance issue the policy based on the application of had unanswered questions, which of the following will be true?
The policy will it be interpreted as if the insurer waived its right to have an answer on the application
An agent and an applicant for a life insurance policy fill out and sign the application. However the applicant does not wish 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 an acceptable Statement of Good Health
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
If a policy includes a free look period of at least 10 days, the buyers guide may be delivered to the applicant no later than?
With the policy
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date earlier than the date of the issuance of the policy.
If an applicant for a life insurance policy in person to be insured by the policy are two different people, the underwriter would be concerned about?
Whether an insurable interest exist between the individuals
When an insurer begins underwriting procedures for an applicant, what will be the main source for its underwriting information?
application
Which of the following is the basic source of information used by the company in the risk selection process?
application
Another name for a substandard risk classification is?
rated
And insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this describe?
unilateral
