9.2b

Question 1

A ______ is proof that an application has been received by the insurer and in return, a policy has been delivered to the applicant for inspection purposes only. An inspection receipt states that the insurance company is ______ until it also receives the applied-for policy’s premium.

Answer 1

inspection receipt

not legally obligated to cover any loss by the applicant

Question 2

After inspecting the policy and upon accepting the policy’s terms, the applicant then ______ and the underwriting process begins.

Answer 2

pays the initial premium to the insurer

Question 3

An applicant is not protected against financial loss while inspecting a policy if ______. Only once the insurer receives both the application and initial premium is ‘consideration’ given to the applicant for the applied-for policy.

Answer 3

the initial premium is not provided to the insurer with the application

Question 4

Most often, an insurer provides a ______ upon receiving both the application and initial premium. Under a conditional receipt, the applicant is covered against loss, should it occur, before the policy becomes effective, on the ‘condition’ that the applicant is found to be ______ as applied for by the insurer’s underwriting department upon completion of its underwriting process.

Answer 4

conditional receipt

insurable

Question 5

If a standard risk application is issued as applied for by the applicant, such policy will also cover ______.

Answer 5

any loss that may have occurred during the underwriting of the policy