QUIZ 1
Respond to the consumer's complaint
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must...
His intended to provided coverage on a date earlier than the date of the issuance of the policy
What is the purpose of a conditional receipt?
When the application is signed and a check is given to the agent
When is the earliest a policy may go into effect?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance
which of the following best describe the MIB
Pay the policy proceeds only if it would have issued the policy.
a prospective insured receives a conditional receipt but dies before the policy is issued the insurer will
Change any incorrect statement on the application by personally initialing next to the corrected statement
all of the following are duties and responsibilities of procedures at the time of application EXCEPT
Education
all of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT
conditions
because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following element EXCEPT
Change a higher premium
if an applicant for a life insurance policy if found to be a substandard risk , the insurance company is most likely to
ancestry
if an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practice has been provided, the report may contain all of the following information EXCEPT
whether an insurable interest exist between the individuals
if applicant for a life insurance policy and person to be insured by the policy are two different people the underwriter would be concerned about
Applicant's past income
in classifying a risk ,the home office underwriting department will look at all of the following EXCEPT
loss
insurance is a contract by which one seek to protect another from
Premium Receipt
most agents try to collect the initial premium for submission with the application. when an agent collects the initial premium from the applicant, the agent should issue the applicant a
insurance
what do individual use to transfer their risk of loss to a larger group?
makes an enforceable promise one-sided: only one party makes an enforceable promise
what is a definition of a unilateral contracts?
It will be higher because the applicant is a substandard risk
in the underwriting process it was determined that the applicant for life insurance is in poor health and has some dangerous habits
when an insurer's underwriter approves coverage
In forming an insurance contract, when does acceptance usually occur?
The application given to a prospective insured
Which of the following is NOT the consideration in a policy?
The date of medical exam
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
Consideration
An insurer neglects to pay a legitimate claim that is covered under the term of the policy. Which of the following insurance principles has the insurer violated?
regulates consumer reports
Federal Fair Credit Reporting Act
The policy will be interpreted as if the insurer waived its right to have an answer on the application
If an insurer issued a policy based on the application that had unanswered question, which of the following will be true?
The customer's associates, friend, and neighbors provide the report's data
In comparison to consumer report which of the following describe a unique characteristic of investigative consumer reports?
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?
The Producer
The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?
Conditional
when both parties to a contract must perform certain duties and follow rules of contract enforceable, the contract is
contracts of adhesion
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis are classified as
If it is intentional and material
When would a misrepresentation on the insurance application be considered fraud?
Selection, classification, and rating of risks
Which of the following best details the underwriting process for life insurance?
consideration
something of value exchanged for something else of value
Premium amounts and surrender values
Which of the following will be included in a policy summary
Disclose commission earned from the sale of the policy
A producer agent must do all of the following when delivering a new policy to the insured Except
to allow the consumer to compare the costs of different policies
what is the purpose of the buyer's guide?
consideration
when an insured makes truthful statements on the application for insurance and pays the required premium it is known as which of the following?
Unilateral
Insurance policies, the insured is not legally bound to any particular action in the insurance contract, but the insurer is legally obligated to pay losses covered by the policy. What contract element does this described?
at the time of application
when must insurable interest exist in a life insurance policy?
return the application to the applicant for completion
which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?
to help the insured understand all aspect of the contract
why should the producer personally deliver the policy when the first premium has already been paid?
