Podcast
Questions and Answers
What is the purpose of a policy summary?
What is the purpose of a policy summary?
- It highlights the critical parts of the policy issued (correct)
- It allows the consumer to compare the costs of different policies
- It details the commissions earned by the agent
- It guarantees a policy will be issued
Any changes made on an insurance application requires the initials of whom?
Any changes made on an insurance application requires the initials of whom?
- Insured
- Agent
- Applicant (correct)
- Beneficiary
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
- Applicant's spouse
- Applicant's physician (correct)
- National Association of Insurance Commissions (NAIC)
- Agent
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life Policy on an applicant?
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life Policy on an applicant?
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
Which Federal law allows an insurer to obtain an inspection report on a potential insured?
Which Federal law allows an insurer to obtain an inspection report on a potential insured?
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When does a life insurance contract become effective if the initial premium is not collected during the application process?
Which of the following statements is CORRECT about an agent who is taking an insurance application?
Which of the following statements is CORRECT about an agent who is taking an insurance application?
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
What action should a producer take if the initial premium is NOT submitted with the application?
What action should a producer take if the initial premium is NOT submitted with the application?
What is being delivered during a policy delivery?
What is being delivered during a policy delivery?
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?
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?
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?
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?
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 agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT:
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT:
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?
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?
What is the purpose of the U.S.A Patriot Act?
What is the purpose of the U.S.A Patriot Act?
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
What would the Medical Information Bureau (MIB) identify?
What would the Medical Information Bureau (MIB) identify?
The reason for backdating a policy is:
The reason for backdating a policy is:
Flashcards
Policy Summary
Policy Summary
Summarizes coverage, riders, and exclusions to help compare policies.
Applicant's Initials
Applicant's Initials
Required on an insurance application to validate changes.
MIB Information Sharing
MIB Information Sharing
Allows sharing an applicant's medical details with their doctor.
Fair Credit Reporting Act
Fair Credit Reporting Act
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Investigative Consumer Report Disclosure
Investigative Consumer Report Disclosure
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Whole Life Premium Factors
Whole Life Premium Factors
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Unanswered Application Questions
Unanswered Application Questions
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Premium Payment Protocol
Premium Payment Protocol
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Life Insurance Contract Effective Date
Life Insurance Contract Effective Date
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Documents for Rated Policy Delivery
Documents for Rated Policy Delivery
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Health Status Change Before Delivery
Health Status Change Before Delivery
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Policy Effective Conditions
Policy Effective Conditions
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U.S.A Patriot Act
U.S.A Patriot Act
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Aviation Exclusion Rider
Aviation Exclusion Rider
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Backdating Policies
Backdating Policies
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MIB Report Reveals
MIB Report Reveals
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Study Notes
Policy Summary and Underwriting
- A policy summary outlines critical aspects of a policy, including coverage, riders, and exclusions, enabling comparisons of different policies.
- The initials of the applicant are required for any changes made on an insurance application.
Medical Information and Privacy
- An applicant's medical information from the Medical Information Bureau (MIB) can be shared with the applicant's physician.
- The Fair Credit Reporting Act enables insurers to obtain inspection reports on potential insured individuals.
- The requirement for disclosing that an investigative consumer report may be obtained comes from the Fair Credit Reporting Act.
Premium Determination and Application Process
- Premium rates for Whole Life Policies are primarily influenced by the risk classification of the applicant.
- If questions on a life application are unanswered, agents should set up meetings with applicants to resolve them.
- When submitting applications, agents must ensure premium checks are made out correctly to the insurance company.
Contract Provisions and Policy Delivery
- Life insurance contracts become effective when the producer delivers the policy and collects the initial premium, assuming the initial premium was not paid at the application stage.
- Upon delivering a rated policy, agents need to collect a signed amendment, signed statement of good health, and the required premium, but not a signed HIPAA disclosure, as that is completed at the time of sale.
Health Disclosure and Conditions
- If an applicant has a change in health status after applying but before policy delivery, the initial premium should be collected along with a signed health statement.
- Policies become effective upon meeting the conditions specified in any conditional receipts provided to clients.
Regulatory Framework
- The U.S.A Patriot Act is aimed at detecting and deterring terrorism.
Special Provisions and Exclusions
- Student pilots may pay regular premiums with an aviation exclusion rider attached to their life insurance policy.
- Backdating of policies can occur to secure a premium rate that reflects an earlier age than the current age of the insured.
MIB Reports
- The MIB may reveal conditions such as testing positive for marijuana use from past screenings or existing life insurance with other carriers.
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