M Completes An Application For Life Insurance

Question: A Medical Information Report (MIB) report may disclose which of the following

Prior preferred rating

Prior use of marjuana

Prior lapsing of policy

Prior bankruptcy judgement

Answer: Prior use of marjuana

Question: An incomplete life insurance application submitted to an insurer will result in which of these actions?

Answer: Application will be returned to the writing agent

Question: A life insurance application must be signed by all of these EXCEPT

the policyowner

the agent

the insured (if an adult)

beneficiary

Answer: beneficiary

Question: A statement made by an insured in an insurance application that must be true to the best of one’s knowledge and which becomes a part of the contract is known as

Answer: a representation

Question: Which of these terms accurately defines an underwriter’s assessment of information on a life insurance application?

Answer: Risk classification

Question: M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M’s policy goes into effect EXCEPT

policy is delivered

free-look period has expired

insurance company issues policy

initial premium is collected

Answer: free-look period has expired

Question: A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

Answer: Aviation exclusion

Question: Why is an applicant’s signature required on a life insurance application?

Answer: To attest that the statements on the application are accurate to the best of the applicant’s knowledge

Question: Before a life insurance policy is issued, which of these components of the contract is required?

Answer: Applicant’s signature on application

Question: What is the purpose of a Policy Summary?

Answer: It highlights the critical parts of the policy issued