At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?
After the Contestable period
When the policy proceeds are paid
At the time of application
When the insured dies
At the time of application
Which Federal law allows an insurer to obtain an inspection report on a potential insured?
Medical Information Bureau Act
Freedom of Information Act
Fair Credit Reporting Act
Medical Information Act
Fair Credit Reporting Act
All of these are considered sources of underwriting information about an applicant EXCEPT
Inspection Report
Credit Report
Rating Services
Medical Information Bureau
Rating Services
An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)
delayed effective date
exclusion for the medical condition
extended Contestable period
Concealment clause
exclusion for the medical condition
Why is an applicant's signature required on a life insurance application?
To attest that the statements on the application are warranties
To attest that the statements on the application are accurate to the best of the applicant's knowledge
To give Power
To attest that the statements on the application are accurate to the best of the applicant's knowledge
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?
Bindi
Binding receipt
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Avocations
Credit status
Marital status
Occupation
Marital status
Who is NOT required to sign a life insurance application?
Adult insured
Policyowner
Agent
Beneficiary
Beneficiary
Before a life insurance policy is issued, which of these components of the contract is required?
Applicant's signature on application
Beneficiary's signature
A conditional receipt
Attending Physician Statement (APS)
Applicant's signature on application
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
Risk classification
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine
driving history
probability of making timely premium payments
if applicant is a tobacco user
overall health of the applicant
probability of making timely premium payments
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
Mail incomplete application to applicant to be completed and returned to the agent
Submit the application as-is to the insurer
Call the applicant
Set up a meeting with the applicant to answer the remaining questions
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and
a Medical Information Report
the initial premium
forward it immediately to the insurer
Attending Physician Stateme
the initial premium
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
free-look period has expired
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 pr
Collect initial premium along with a signed health statement
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, w
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
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 policy is issued
The date of policy delivery
When the conditions of the receipt are met
The date
When the conditions of the receipt are met