Questions and Answers
Which of the following will be included in a policy summary? (Select all that apply)
If an agent fails to obtain an applicant's signature on the application, what must the agent do?
Which is the appropriate action by the insurer if a prospective insured submitted an incomplete application?
If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the earliest time the telemarketer can call the prospect's residence?
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Why should the producer personally deliver the policy when the first premium has already been paid?
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A prospective insured receives a conditional receipt but dies before the policy is issued. What will the insurer do?
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What was created to keep telemarketers from calling consumers who do not wish to be contacted?
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Which of the following is a generic consumer publication that explains life insurance in general terms to assist the applicant in the decision-making process?
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A producer agent must do all of the following when delivering a new policy to the insured EXCEPT:
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Study Notes
Policy Summary Inclusion
- A policy summary must include premium amounts, cash values, surrender values, and death benefit figures for specific policy years.
- It provides the producer's name and address, along with the insurance company's home office address and the generic name of the policy issued.
Application Signature Requirements
- Applications must have authorized signatures; if an applicant's signature is missing, the agent must return the application for proper signing.
Incomplete Application Handling
- Insurers must return incomplete applications to the applicants for completion; any unanswered questions must be resolved before policy issuance.
Telemarketing Calling Hours
- Telemarketers can legally call consumers only between 8 am and 9 pm.
Policy Delivery Responsibilities
- The producer should personally deliver the policy to clarify contract details and ensure understanding, confirming receipt by having the insured sign.
Conditional Receipt and Death of Applicant
- If a prospective insured with a conditional receipt dies before policy issuance, the insurer will pay the proceeds only if the policy would have been issued as applied for.
Do Not Call Registry
- The National Do Not Call Registry allows consumers to opt-out of being contacted by telemarketers.
Buyer's Guide
- The Buyer's Guide is a consumer publication that helps applicants understand life insurance in general terms, aiding in decision-making without addressing specific policies.
Producer Responsibilities at Policy Delivery
- When delivering a policy, a producer must:
- Explain policy provisions, riders, and exclusions.
- Collect any premium due.
- Clarify rating procedures if needed.
- Producers are not required to disclose commissions earned from the sale of the policy during delivery.
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Description
Test your knowledge on application, underwriting, and policy delivery with this quiz. Focus on the key elements included in a policy summary and understand their significance. Perfect for insurance professionals looking to refresh their expertise.
