Chapter 5: Underwriting and Policy Issue

A Medical Information Report (MIB) report may disclose which of the following Prior preferred rating Prior use of marjuana Prior lapsing of policy Prior bankruptcy judgement

An incomplete life insurance application submitted to an insurer will result in which of these actions?

A life insurance application must be signed by all of these EXCEPT the policyowner the agent the insured (if an adult) beneficiary

A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT policy is delivered free-look period has expired insurance company issues policy initial premium is collected

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

Why is an applicant's signature required on a life insurance application?

Before a life insurance policy is issued, which of these components of the contract is required?

What is the purpose of a Policy Summary?

n order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when

Any changes made on an insurance application requires the initials of whom?

What is being delivered during a policy delivery?

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)

What is the purpose of the U.S.A. Patriot Act?

Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT Signed HIPAA disclosure Signed amendment Signed statement of Good Health The required premium

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

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

What action should a producer take if the initial premium is NOT submitted with the application?

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of

Which of these actions should a producer take when submitting an insurance application to an insurer? Issue a binding receipt to applicant if no initial premium is submitted Disclose to the applicant the amount of commissions to be earned on this transaction Inform insurer of relevant information not included on the application Arrange for a copy of the Attending Physician Statement (APS) to be sent to the producer

What would the Medical Information Bureau (MIB) identify?

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Which parts of a life insurance policy are guaranteed to be true?

At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?

On delivery of a policy, a signed statement of good health is typically requested if

ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n)

An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors?

Which of these do NOT constitute policy delivery? Policy mailed to applicant Policy mailed to agent Policy delivered to the applicant by the agent Policy issued with a rating

All of these are considered sources of underwriting information about an applicant EXCEPT Inspection Report Credit Report Rating Services Medical Information Bureau

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine

Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

The USA Patriot Act was enacted in

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?

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?

On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?

When an insurance application is taken by a producer, which of these statements is true?

Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? Geographical location Source of income Risk classification Marital status

When does a life insurance contract become effective if the initial premium is not collected during the application process?

Which of these factors do NOT play a role in the underwriting of a life insurance policy? Avocations Credit status Marital status Occupation

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

K applies for a life insurance policy on herself and submits the initial premium with the application. She is given a receipt by the agent stating that coverage begins immediately if the application is approved. What kind of receipt was used?

Which of the following statements is CORRECT about an agent who is taking an insurance application?

The underwriting process involves all of these EXCEPT for