A Life Insurance Application May Be Backdated To

Question: When does a life insurance policy typically become effective?A. When the policy is issuedB. When initial premium is collected and policy is issuedC. When the application is completed and signedD. When the completed application is signed and initial premium is collected

Answer: When initial premium is collected and policy is issued

Question: What is the purpose of the Medical Information Bureau (MIB)? A. To accept or decline insurance applicants B. To set the premium rates for insurers C. To help underwriters evaluate risk D. To perform physical examinations on applicants

Answer: To help underwriters evaluate risk

Question: How many months can a life insurance policy normally be backdated from the date of application?A. 3B. 6C. 9D. 12

Answer: 6

Question: Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?A. A waiver of premiumB. A replacement formC. A good health statementD. An exclusion

Answer: A replacement form

Question: What is involved when a life insurance policy has been backdated?A. Setting a policy's effective date prior to a preexisting conditionB. Redating a policy after it has been issuedC. Reinstating a lapsed policyD. Making the policy effective on an earlier date than the present

Answer: Making the policy effective on an earlier date than the present

Question: A change in an insurance application requires?A. an initial made by the producerB. an initial made by the applicantC. approval by the insurerD. submitting a new application

Answer: an initial made by the applicant

Question: Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT?A. the producerB. the insuredC. the policyownerD. the beneficiary

Answer: the beneficiary

Question: What happens when an insurance policy is backdated?A. The policy's elimination period is waivedB. The time frame for reinstating a lapsed policy is extendedC. The policy's probation period is earlier than the presentD. The policy's effective date is earlier than the present

Answer: The policy's effective date is earlier than the present

Question: The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?A. An agent establishes insurable interestB. An individual does not have insurable interest on his or her own lifeC. Insurable interest only pertains to business arrangementsD. Insurable interest can be based on the love and affection of individuals related by blood or law

Answer: Insurable interest can be based on the love and affection of individuals related by blood or law

Question: Preferred risk policies with reduced premiums are issued by insurance companies because the insured has?A. a higher face amount than averageB. a better ability to pay premiums over a long period of timeC. worse than average mortality or morbidity experienceD. better than average mortality or morbidity experience

Answer: better than average mortality or morbidity experience

Question: Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?A. Standard riskB. Preferred riskC. Unacceptable riskD. Substandard risk

Answer: Substandard risk

Question: Which of these is NOT considered to be a risk factor in life insurance underwriting?A. Number of childrenB. Health historyC. HobbiesD. Occupation

Answer: Number of children

Question: A field underwriter's main task is?A. assign a risk classification to the insuredB. report medical information to the Medical Information Bureau (MIB)C. to ensure an applicant's medical information is accurate and completeD. to approve or decline an applicant

Answer: To ensure an applicant's medical information is accurate and complete

Question: Which of the following would be considered an underwriting duty of an agent?A. Requesting medical information from the Medical Information Bureau (MIB)B. Completing all applications and collecting initial premiumsC. Accepting or declining an applicationD. Assigning a risk classification

Answer: Completing all applications and collecting initial premiums

Question: In which of the following relationships would there NOT be an insurable interest?A. Parent to childB. Business partner to business partnerC. Brother to sisterD. Business owner to business customer

Answer: Business owner to business customer

Question: All of these are typically sources of underwriting information for life or health insurance EXCEPT?A. Consumer reportsB. Medical Information Bureau (MIB) reportsC. Disclosure authorization responseD. Attending physician's statement (APS)

Answer: Disclosure authorization response

Question: An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of?A. rebatingB. coercionC. fraudD. twisting

Answer: fraud

Question: An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT?A. providing disclosure information to the applicantB. collecting initial premiumC. policy deliveryD. providing commission information to the applicant

Answer: Providing commission information to the applicant