Questions and Answers
What is being delivered during a policy delivery?
Insurance contract to the proposed insured
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
Which of these do NOT constitute policy delivery?
What is the purpose of the U.S.A. Patriot Act?
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When a policyowner cash surrenders a Universal Life insurance policy in its early years, this may be considered a red flag for a(n):
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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?
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Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?
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Why is an applicant's signature required on a life insurance application?
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An incomplete life insurance application submitted to an insurer will result in which of these actions?
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The underwriting process involves all of these, EXCEPT for:
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An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
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A life insurance application must be signed by all of these, EXCEPT:
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Which of these actions should a producer take when submitting an insurance application to an insurer?
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Before a life insurance policy is issued, which of these components of the contract is required?
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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?
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Study Notes
Life Insurance Underwriting and Policy Issue
- Policy delivery involves handing over the insurance contract to the proposed insured.
- A student pilot's life insurance policy may include an aviation exclusion, affecting premium costs.
- Policy delivery methods exclude policies issued with a rating, which do not constitute successful delivery.
- The U.S.A. Patriot Act was established to detect and deter terrorism.
- Early cash surrender of a Universal Life insurance policy may trigger alarms for Anti-Money Laundering violations.
- A conditional receipt is provided to an applicant, binding coverage from the application or medical examination date, assuming acceptable risk.
- Risk classification is the term used to define underwriter assessments on life insurance applications.
- An applicant's signature on a life insurance application verifies the accuracy of submitted information.
- Incomplete applications are returned to the writing agent for completion before processing.
- The underwriting process includes elements like credit reports, risk classification, and applications but excludes policy loans.
- A conditional receipt becomes effective once specified conditions are met by the applicant.
- All parties except the beneficiary must sign a life insurance application, including the policyowner, agent, and insured.
- Producers must inform insurers of any relevant information not included in an insurance application when submitting it.
- The applicant's signature is necessary for the issuance of a life insurance policy.
- The Fair Credit Reporting Act mandates disclosure on applications that investigative consumer reports may be obtained.
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Description
Test your knowledge on life insurance underwriting and policy issuance with this flashcard quiz. Each question covers key concepts and definitions that are essential for understanding the process of delivering insurance contracts. Perfect for students and professionals alike!
