CH1 Flashcards

1
Q

A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will

A- Pay the policy proceeds only if it would have issued the policy.

B- Automatically pay the policy proceeds.

C- Pay the policy proceeds up to an established limit.

D- Not pay the policy proceeds under anycircumstances.

A

A- Pay the policy proceeds only if it would have issued the policy.

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2
Q

Which of the following would provide an underwriter with information concerning an applicant’s health history?

A-The agent’s report

B- The inspection report

C- A medical examination

D- The Medical InformationBureau

A

D- The Medical InformationBureau

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3
Q

What is the purpose of a conditional receipt?

A- It serves as proof that the applicant has been determined insurable.

B-It guarantees that a policy will be issued in the amount applied for.

C- It is intended to provide coverage on a date prior to the policy issue.

D- It is given only to applicants who fully prepaythepremium.

A

C- It is intended to provide coverage on a date prior to the policy issue.

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4
Q

Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called

A- Common errors

B- Warranties

C- Material misrepresentations.

D- Fraudulent statements.

A

C- Material misrepresentations.

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5
Q

The term “illustration” in a life insurance policy refers to

A- Charts and graphs.

B- A presentation of nonguaranteed elements of a policy.

C- A depiction of policy benefits and guarantees.

D- Pictures accompanying a policy.

A

B- A presentation of nonguaranteed elements of a policy.

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6
Q

As a field underwriter, an agent is responsible for all of the following EXCEPT

A- Help prevent adverse selection.

B- Solicit business that will fall within the insurer’s underwriting guidelines.

C- Obtain appropriate signatures on the application for insurance.

D- Issue the policy that is solicited.

A

D- Issue the policy that is solicited.

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7
Q

If a policy includes a free-look period of at least 10 days, the Buyer’s Guide may be delivered to the applicant no later than

A- Upon issuance of the policy.

B- Within 30 days after the first premium payment was collected

C- With the policy.

D- Prior to filling out an applicationforinsurance.

A

C- With the policy.

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8
Q

What is the purpose of the buyer’s guide?

A- To allow the consumer to compare the costs of differentpolicies

B- To provide the name and address of the agent/producer issuing the policy

C- To list all policy riders

D- To provide information about theissuedpolicy

A

A- To allow the consumer to compare the costs of differentpolicies

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