CH1 Flashcards
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- Pay the policy proceeds only if it would have issued the policy.
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
D- The Medical InformationBureau
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.
C- It is intended to provide coverage on a date prior to the policy issue.
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.
C- Material misrepresentations.
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.
B- A presentation of nonguaranteed elements of a policy.
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.
D- Issue the policy that is solicited.
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.
C- With the policy.
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- To allow the consumer to compare the costs of differentpolicies