Life Underwriting

- After an applicant reads and signs an insurance application, he/she should be conscious of the fact that

A false statement could lead to loss of coverage

- An applicant submits a life insurance application where an investigative consumer report is used in the underwriting process. Which of these statements is true?

Applicant has a right to receive a copy of the report

- In what situation could an insurance policy's coverage be modified?

Applicant is a substandard risk

- A policyowner pays the first annual premium for a $50,000 life insurance policy and dies one month after the policy effective date. Which of these statements is normally true?

Beneficiary receives $50,000 income tax-free

- The principal source of information concerning an applicant's identity, age, and martial status is found in the

Completed application

- Which of these is NOT an underwriting responsibility of a life insurance agent?

Determining the final relate classification

- When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement?

Eye examination

- Insurable interest in one's own life is legally considered as

Generally unlimited

- When the disclosure of an insured's nonpublic information is involved, what is the insurer obligated to do?

Give notice, explain, and allow opting out

- An insured may be required to sign which document at policy delivery to ensure there has not been any adverse medical conditions since the time of the application?

Good health statement

- The Medical Information Bureau consists of members from which group?

Insurance companies

- After an insurance application has been originated, the producer normally

Is the major personal contact to the insured

- The initial premium for a life insurance policy is typically paid in what way?

It is typically obtained by the producer and forwarded to the insurer

- All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT

Leave a conditional receipt with client

- An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT

Living in a rural area

- Which of these is NOT used as a selection criteria in the underwriting process of a life insurance application?

National origin

- Where is the difference between a standard risk and a substandard risk reflected?

Premium charges

- When must a producer provide disclosure about information practices to an applicant?

Prior to or at the time of signing the application

- When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?

Producer

- Which of these is NOT considered the responsibility of a producer during the underwriting process?

Selecting the final approval date

- 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

- An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?

When the conditions of the receipt are met

- When does the producer give a premium receipt for a life insurance application?

When the initial premium has been paid with the application

- Field underwriting by a producer

may result in the disclosure of hazardous activities of the application

- The reason for backdating a policy is

to obtain a premium rate based on an earlier age