5 – Life Insurance Underwriting and Policy Issue

-exclusion for the medical condition. ( In this situation, the policy may be issued with an exclusion for the medical problem.)

"Signed HIPAA disclosure" (Upon delivery of a rated life insurance policy, the Producer must obtain all of these EXCEPT a "Signed HIPAA disclosure". The HIPAA disclosure should be taken at the time of sale with the application.)

- applicant's physician. (Information received from the Medical Information Bureau about a proposed insured may be released to the proposed insured's physician.)

- 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 .

- Rating Services. (All of these are valid sources to obtain underwriting information about an applicant EXCEPT for a rating service (A.M. Best, Standard & Poor's).

- Policy loan. ( A policy loan is not a factor in the underwriting process.)

- Application will be returned to the writing agent. ( If the company discovers a mistake or incompletion, it usually returns the application to the producer.)

- Forward the application to the insurer without the initial premium. ( In this situation, the producer should submit the application to the insurance company without the premium. However, if a premium is not paid with the application, the policy will not become valid until the initial premium is collected.)

- When the conditions of the receipt are met. (A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect)

At the time of application. ( With life insurance, insurable interest must exist only at the policy inception.)

--Conditional. (A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect.)

-The agent should have the applicant initial any changes made on the application. (An agent who is taking an insurance application should have the applicant initial any changes made on the application.)

It highlights the critical parts of the policy issued. ( A Policy Summary highlights the critical parts of the policy issued and describes the coverages, riders, and exclusions.)

Free-look period has expired. ( In this situation, the policy will go into effect after all these actions occur EXCEPT the expiration of the free-look period.)

- Applicant. (When an applicant makes a mistake in the information given to an agent in completing the application, the applicant can have the agent correct the information, but the applicant must initial the correction.)