Completing The Application, Underwriting and Delivering the Policy

When the agent delivers the policy, collects the initial premium, and the applicant completes an acceptable statement of good health.

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, no conditional receipt is issued. When will the coverage begin?

The policy may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of the application

An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for the application to be completed. After the policy was issued, the agent talked to the family, and they explained that the insured was recovering form surgery and might have been under the influence of medication at the time of completion.

The date of medical exam

An individual applied for an insurance policy and paid the initial premium. The insurer issued the conditional receipt. Five days later the applicant had to submit a medical exam. If the policy is issued, what would be the policies effective date?

Conditional

An insurance contract requires that both the insured and the insurer meet certain conditions in order for the contract to be enforceable. What contract characteristic does this provide?

The customer's associates, friends, and neighbors provide the reports data

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

When an insurer's underwriter approves coverage

In forming an insurance contract, when does acceptance usually occur

Substandard risk

Which of the following risks will result in the highest premium?

5 days

If a consumer requests additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply?

Family health history, alcohol and tobacco consumption, and recent surgeries

Part 2 of the application for life insurance provides questions regarding..

As of the application date

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

signed waiver of premium

Upon policy delivery, the producer may be required to obtain...

Standard, substandard and preferred

What are risk classification used by underwriting for life insurance?

It is intended to provide coverage on an earlier date than the date issuance of policy

What is the purpose of conditional receipt?

To allow the consumer to compare costs of different policies

What is the purpose of the buyers guide?

Return the application to the applicant for completion

Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?

Inspection Report

An underwriter may obtain information on an applicants hobbies, financial status and habits by ordering..?

Contract Adhesion

What contract enables all decisions to be made by the insurer without negotiation of the insured, submitted on a take it or leave it basis?

Child in parent, business partner in each other, and employer in employee

What is an insurable interest?

if it is intentional and material

When would the misrepresentation on the insurance application be considered fraud?

Consumer Reports

Which report provides information about the insurance applicants credit to the underwriter?

Insurance

What do individuals use to transfer their risk of loss to a larger group?

Buyer's guide

What is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision making process?