Chapter 6: Life insurance underwriting and policy issue Flashcards
T cash surrenders a recently issued whole life policy. He also requests that the proceeds be payable to an unrelated third party. T would likely be red flagged for violation of
anti-money laundering rules
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When producer delivers policy and collects initial premium
What action should a producer take if the initial premium is NOT submitted with the application
forward the application to the insurer without the initial premium
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?
The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured
All of these are considered sources of underwriting information EXCEPT
Inspection report
Credit report
**Rating services
Medical information bureau
When a policyowner cash surrenders a universal life policy in it’s early years, this may be considered a red flag for a
anti money laundering violation
Which federal law allows an insurer to obtain an inspection report on a potential insured
fair credit reporting act
T is given receipt after completing a life insurance application and paying the initial premium. Under this situation, T’s coverage is
conditional, depending on the insurer’s underwriting guidelines
A(n) _____ contained in a life insurance policy states that the policy will NOT cover certain risks
exclusion
What is being delivered during a policy delivery?
insurance contract to the proposed insured
Which of the following statements is CORRECT about an agent who is taking an insurance application?
the agent should have the applicant initial any changes made on the application
When an insurance application is taken by a producer, which of these statements is true?
Any changes made on the application require the applicants initials
