Which Of These Actions Should A Producer Take When Submitting

Question: What action should a producer take if the initial premium is NOT submitted with the application?

Answer:

Question: When a policyowner cash surrenders a Universal Life insurance policy in it’s early years, this may be considered a red flag for a(n)

Answer: Anti-Money Laundering violation

When a policyowner cash surrenders a Universal Life insurance policy in it’s early years, this may be considered a red flag for an Anti-Money Laundering violation.

Question: 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?

Answer: Fair Credit Reporting Act

The Fair Credit Reporting Act requires that an insurance application state that an investigative consumer report may be obtained on an applicant.

Question: ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this situation, the insurer has

Answer: The correct answer is “waived one of its legal rights”. If an insurer accepts an application that contains unanswered questions and makes the application part of the life contract, the company has waived one of its legal rights.

Question:

Answer: Collect initial premium along with a signed health statement

Question: An applicant’s medical information received from the Medical Information Bureau (MIB) may be furnished to the

Answer: The correct answer is “applicant’s physician”. Information received from the Medical Information Bureau about a proposed insured may be released to the proposed insured’s physician.

Question: Which of the following statements is CORRECT about an agent who is taking an insurance application?

Answer: The agent should have the applicant initial any changes made on the application

Question: K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective?

Answer: The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured

Question: All of these are considered sources of underwriting information about an applicant EXCEPT

Answer: Rating Services

All of these are valid sources to obtain underwriting information about an applicant EXCEPT for a rating service (A.M. Best, Standard & Poor’s).

Question:

Answer: January 26

In this situation, coverage became effective on the date the policy was delivered and first premium collected.