underwriting chapter quiz
An applicant who receives a preferred risk classification qualifies for
lower premiums than a person who receives a standard risk
untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called:
material misrepresentation
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
premium receipt
if an agent fails to obtain an applicant's signature on the application, the agent must
return the application to the applicant for a signature
which is generally true regarding insureds who have been classified as preferred risks?
their premiums are lower
which of the following best describes the MIB?
It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
which of the following documents delivered to the policyowner includes information about premiums amounts, cash values, surrender values and death benefits for specific policy years?
a policy summary
The term "illustration" in a life insurance policy refers to
a presentation of non-gauranteed elements of a policy
in classifying a risk, the home office underwriting department will look at all of the following except
applicants past income
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?
as of the application date
all of the following are duties and responsibilities of producers at the time of the application EXCEPT
change any incorrect statement on the application by personally initialing next to the corrected statements.
which of the following is NOT an example of a valid insurable interest?
debtor in the life of the creditor
which of the following is a generic consumer publication that explains life insurance in general terms in order to assist the applicant in the decision- making process?
buyers guide
if an applicant for a life insurance policy is found to be substandard risk, the insurance company is most likely to
charge a higher premium
which of the following would provide an underwriter with information concerning an applicants health history?
the medical information bureau
Representations are written or oral statements made by the applicant that are
considered true to the best of the applicants knowledge
a producer agent must do all of the following when delivering a new policy to the insured EXCEPT
disclose commissions earned from the sale of the policy
if a change needs to be made to the application for insurance, the agent must do all of the following except
erase the incorrect answer and record the correct answer
an underwriter may obtain information on an applicants hobbies, financial status, and habits by ordering an
inspection report
the insurers discovered that one of the applicants for life insurance missed a couple of questions on the application. what must the insurer do with the application?
return to the applicant for completion
which of the following best details the underwriting process for life insurance?
selection, classification, and rating of risks
which of the following is a risk classification used by underwrites for life insurance?
standard
which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
warranties
when is the earliest a policy may go into effect?
when the application is signed and a check is given to the agent
Insurance is a contract by which one seeks to protect another from
loss
which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles.
standard risks is representative of the majority of people.
an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. 5 days later the applicant had to submit to a medical exam. if the policy is issued, what would be the policy's effective date?
the date of the medical exam bc it occurred last.
which his generally true regarding insureds who have been classified as preferred risks?
their premiums are lower
what is the purpose of a buyers guide?
to allow the consumer to compare the costs of different policies
