Life Insurance Underwriting and Policy Issue Ch. 5
The USA Patriot Act was enacted in
2001
At what time must a policy owner have insurable interest on the insured in order for the life policy to be valid?
At the time of application
A student pilot can pay regular premium costs for her life insurance policy with the addition of the following?
Aviation exclusion
Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
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
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 the coverage begins immediately if the application is approved. What kind of receipt was used?
Conditional
What action should a producer take if the initial premium is NOT submitted with the application?
Forward the application to the insurer without the initial premium
An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?
Gender
Which of these actions should a producer take when submitting an insurance application to an insurer?
Inform insurer of relevant information not included on the application
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
What is the purpose of a Policy Summary?
It highlights the critical parts of the policy issued
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT
Signed HIPAA discosure
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Marital Status
P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when
P receives the policy and pays the premium
Which of these do Not constitute policy delivery?
Policy issued with a rating
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle the situation?
Policy was returned within the free-look period, premium will be fully refunded
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?
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?
Risk clarification
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?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
Which part of a life insurance policy is guaranteed to be true?
Warranty
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the
applicant's physician
A life insurance application must be signed by all of these EXCEPT
beneficiary
On delivery of a policy, a signed statement of good health is typically requested if
the application was submitted without the initial premium
ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has
waived one of its legal rights