In The Underwriting Process It Was Determined That The Applicant

Question: in the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. which is true concerning the policy premium?

Answer: it will likely be higher because the applicant is a substandard risk

Question: purpose of a conditional receipt

Answer: it is intended to provide coverage on a date earlier than the date of the issuance of the policy

Question: an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. 5 days later the applicant had to submit to a medical exam. If the policy is issues, what would be the policy’s effective date?

Answer: the date of the medical exam

Question: purpose of a buyer’s guide

Answer: to allow the consumer to compare the costs of different policies

Question: when must interest exist in a life insurance policy?

Answer: at the time of application

Question: this is not a duty or responsibility of producers at the time of application

Answer: change any incorrect statement on the application by personally initially next to the correct statement

Question: An individual who must have insurable interest insured

Answer: policyowner

Question: woman has states on her life insurance application that she has never had a heart attack, actually she has had several last year and required minor medical work. which is a reason to a death benefit claim is denied?

Answer: material representation

Question: which is generally true about insureds who have been classified as preferred risks?

Answer: their premiums are lower

Question: the medical information bureau (MIB) was created to protect

Answer: insurance companies from adverse selection by high risk persons