Completing the Application, Underwriting, and Delivering the Policy
Which of the following includes information regarding a person's credit, character, reputation, and habit
Consumer Report
When an agent collects the initial premium from the applicant, the agent should issue the applicant a...
premium receipt
The term illustration refers to
A presentation of non-guaranteed elements of a policy
What contract characteristic does an insurance policy describe?
Adhesion
In insurance, an offer is usually made when
An applicant submits an application to the insurer
What is an essential element of an insurance contract?
Consideration, Agreement, Legal Purpose
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?
Inspection Report
Who initials the information on a change in an application?
The applicant
Representations are written or oral statements made by the applicant that are
considered to be true to the best of the applicant's knowledge
When is the earliest a policy may go into effect?
when the application is signed and the check is given to the agent
What is the purpose of a conditional receipt?
It is intended to provide coverage on a date prior to the policy issue
Which of the following best details the underwriting process for life insurance?
Selection, classification, and rating of risks
When the insured is not legally bound to do anything, but the insurer must pay losses covered by the policy
Unilateral Contract
What is included in a policy summary?
producer name and address, insurance company home address, generic name of policy issued, and premium, cash value, surrender value, and death benefit
The Gramm- Leach-Biley Act was passed to
protect private customer information that is filed within a financial institution
What are the three risk classifications used by underwriters in life insurance?
standard, substandard, and preferred
In forming an insurance contract, when does acceptance usually occur?
when an insurer's underwriter approves coverage