Life and Health insurance Test questions
Exclusion
A(n) _________ contained in a life insurance policy states that the policy will NOT cover certain risks
At the time of application
At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?
2001
The USA patriot act was enacted in
warranty
Which parts of a life insurance policy are guaranteed to be true?
Beneficiary
Who is NOT required to sign a life insurance application?
Probability of making timely premium payments
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:
Fair Credit Reporting Act
From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?
The initial premium
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and
Inspection Report
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
Free-look period has expired
M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect, EXCEPT
When the applicant receives the policy and pays the initial premium
A $20,000 life insurance policy application is completed, however the producer does not collect the initial premium. At what point does the coverage go into effect?
Prior use of Marijuana
A Medical Information Bureau (MIB) report may disclose which of the following?
Aviation exclusion
A pilot applies for Life Insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. The pilot declines the additional premium modification. The insurer will then likely issue the coverate with a(n):
A representation
A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes part of the contract is known as:
Aviation Exclusion
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? Guaranteed Insurability rider Aviation Exclusion Impairment Rider Accidental Death Benefit Rider
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company.
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
Rating Services
All of these are considered sources of underwriting information about an applicant, EXCEPT:
When the conditions of the receipt are met.
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
Applicant's physician
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
Application will be returned to the writing agent
An incomplete life insurance application submitted to an insurer will result in which of these actions? Application will be returned to the writing agent Application will be approved with restrictions Application will be pending until a MIB report is sent to the insurer Application will be automatically declined
Extra Premium
An underwriter determines that a life insurance applicant's rish should be reclassified due to a health issue. This policy may be issued with a(n)
Applicant
Any changes made on an insurance application requires the initials of whom?
Applicant's signature on application
Before a life insurance policy is issued, which of these components of the contract is required?
Conditional
K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?
The date the agent delivered the policy, collected the initial premium and obtained a good health statement from the insured.
K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however, the check was never signed by the applicant. If the application is approved, when will coverage be effective?
Collect initial premium along with a signed health statement.
On August 6, D submitted an application for a $50,000 Life Insurance Policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer take?
Coverage became effective on the date the policy was delivered and the first premium collected.
On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on Jan 24 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?
Set up a meeting with the applicant to answer the remaining questions
P is a producer who notices 5 questions on a life application were not answered? What actions should P take?
Policy was returned within the free-look period, premium will not be refunded
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but is was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?
Conditional Receipt
T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?
To obtain a premium rate based on an earlier age.
The reason for backdating a policy is
Policy Loan
The underwriting process involves all of these, EXCEPT for: credit report policy loan risk classification application
Signed HIPPA disclosure
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT:
The initial premium was NOT submitted with the application
Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?
Insurance contract to the proposed insured
What is being delivered during a policy delivery?
Application containing statements from the insured.
What is the initial source of underwiring for an insurance policy?
Detect and deter terrorism
What is the purpose of the U.S.A Patriot Act?
Testing positive for marijuana use from a previous screening
What would the Medical Information Bureau (MIB) identify?
Anti-Money Laundering Violation
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n):
Any changes made on the application require the applicant's initials.
When an insurance application is taken by a producer, which of these statements is true?
When producer delivers policy and collects initial premium
When does a life insurance contract become effective if the initial premium is not collected during the application process?
Fair Credit Reporting Act
Which Federal Law allows an insurer to obtain an inspection report on a potential insured?
Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
The agent should have the applicant initial any changes made on the application
Which of the following statements is CORRECT about an agent who is taking an insurance application?
inform insurer of relevant information not included on the application
Which of these actions should a producer take when submitting an insurance application to an insurer
Marital Status
Which of these factors do NOT play a role in the underwriting of a life insurance policy? Avocations Credit Status Marital status Occupation
Risk Classification
Which of these terms accurately defines an underwriter's assessment of information on a life insurance application? Risk Classification Warranty Review Insurable Interest Inspection Report
To attest that the statements on the application are accurate to the best of the applicant's knowledge.
Why is an applicant's signature required on a life insurance application?
