Underwriting and Policy Issue
The initial premium for a life insurance policy is typically paid in what way?
Obtained by the producer and forwarded to the insurer
The principal source of information concerning an applicant's identity, age, and marital status is found in the
completed application
After an insurance application has been originated, the producer normally
Is the major person contact to the insured
Field underwriting by a producer
may result in the disclosure of hazardous activities of the applicant
A signed good health statement may be requested by a life producer at the time of
policy delivery
When a producer submits an application that discloses personal information regarding the applicant, who supplies the privacy notice?
producer
When does the producer give a premium receipt for a life insurance application?
when the initial premium has been paid with the application
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
The reason for backdating a policy is
to obtain a premium rate based on an earlier age
Where is the difference between a standard risk and a substandard risk reflected?
Premium charges
Insurable interest in one's own life is legally considered as
generally unlimited
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? A. applicant is preferred risk B. applicant is substandard risk C. applicant is a standard risk D. applicant is uninsurable
B
Which of these is NOT used as selection criteria in the underwriting process of a life insurance application? A. credit report B. National origin C. age of applicant D. Sex of applicant
B
What must be given to a life insurance applicant when the agent receives an application and the initial premium?
Conditional receipt
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? A. Premium will be refunded with interest and no death benefit B. Premium received by insurer is considered to be unearned C. Proceeds are prorated to 1/12th of the full amount D. Beneficiary receives $50k income tax free
D.
Mike applied for life insurance and was issued a conditional receipt. He is later found to be insurable and is issued a policy. When does his coverage become effective?
Date of issuance of the conditional receipt
The Medical Information Bureau (MIB) consists of members from which group?
Insurance companies
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 statement of good health from the insured
When an applicant applies for a large amount of life insurance coverage, which of the following would likely NOT be an underwriting requirement? Consumer report Eye examination Urine sample Blood sample
eye exam
When must a producer provide disclosure about information practices to an applicant?
Prior to or at the time of signing the application
An insurance policy may be issued a preferred insurance premium in all of these situations except A. good credit B. living in a rural area C. good health history D. being a nonsmoker
B
All of these are duties that a producer may be required to perform when delivering an insurance policy EXCEPT Acquire a statement of good health signature Gather the initial premium Review policy with applicant Leave a conditional receipt with client
D
Which of these is NOT an underwriting responsibility of a life insurance agent? A. asking relevant questions concerning an applicant's avocations B. requesting an attending physician's report (APR) C. Ordering an inspection report D. Determining the final rate classification
D
Which of these is NOT considered the responsibility of a producer during the underwriting process? A. Collecting additional medical information if need B. Promptly sending the completed application to the insurance company C. Forwarding any material personal observations to the insurer D. Selecting the final approval date
D
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
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
Which report contains information regarding an individual's general reputation and credit standing?
consumer report
