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?

Answer: substandard risk

Question: an applicant intentionally lying to an insurance company on application in order to obtain it cheaper premium is an example of

Answer: fraud

Question: which of the following would be a valid reason why a policy premium would be higher than the standard premium?

Answer: the insured does not meet established underwriting requirements

Question: what would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?

Answer: claim will be paid if application is approved

Question: a change in an insurance application requires

Answer: an initial made by the applicant

Question: an individual most likely will have an insurable interest in insuring a person's life if

Answer: an economic interest exist for the continuance of the insurance life

Question: when does a life insurance policy typically become effective?

Answer: when an initial premium is collected and policy is issued

Question: an insurance company needs to obtain personal information from a third-party concerning an applicant. which law do all insurers and their producers need to comply with?

Answer: Fair Credit Reporting Act

Question: an applicant's character and personal habits can be obtained for underwriting purposes from which source?

Answer: investigative Consumer Report

Question: Underwriters can acquire information from all the following sources EXCEPT

Answer: genetic testingCORRECT: medical information Bureau (MIB), consumer reports, and attending physicians statements

Question: which of these is likely to occur when life for health insurance is being applied for?

Answer: medical history from the insured may be reviewed and reported

Question: the principle of insurable Interest, in regards to life insurance contract, is accurately described in which statement?

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

Question: an insurance applicant with a below-average likelihood of loss is typically considered to be a

Answer: Preferred Risk

Question: in regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable Interest?

Answer: insurable interest can be established sufficiently by sentimental attachment aloneCORRECT: individuals are assumed to have insurable interest in themselves, insurable interest is established by a court of law, and insurable interest must exist at the time of the application

Question: a field Underwriters main task is

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

Question: upon policy delivery, which of the following must a producer have an applicant sign if no initial premium is collected with the life insurance application?

Answer: a good health statement

Question: an attending physician statement would be appropriate for which life insurance purpose?

Answer: at the request of the insurer to assist in the underwriting decision

Question: which of the following does a life insurance policy summary normally include?

Answer: the policy's cash value