Completing the application underwriting and delivering the policy

Question 1

Adverse selection

Answer 1

Ensuring of risks that are more prone to losses than the average risk

Question 2

Agent

Answer 2

A legal representative of an insurance company. The classification of producer usually includes agents and brokers agents are agents of the insurer.

Question 3

Applicant or proposed insured.

Answer 3

A person applying for insurance

Question 4

Beneficiary

Answer 4

A person who receives the benefits of an insurance policy

Question 5

Death benefit

Answer 5

The amount paid up upon the death of the insured in a life insurance policy

Question 6

fraud

Answer 6

Intentional, misrepresentation or deceit with the intent to induce a person depart with something of value

Question 7

Insurance policy

Answer 7

A contract between a policy owner and an insurance company which agrees to pay the insured or the beneficiary for loss cover caused by a specific event

Question 8

Insured

Answer 8

Person covered by the insurance policy may or may not be the policy owner

Question 9

Insurer

Answer 9

The company who issues an insurance policy

Question 10

Lapse

Answer 10

Posse termination due to nonpayment of premium

Question 11

Life insurance

Answer 11

Coverage on human lives

Question 12

Policy owner

Answer 12

The person entitled to exercise the rights and privileges in the policy

Question 13

Premium

Answer 13

The money paid to the insurance company for the insurance policy

Question 14

What law protects consumers from the circulation of inaccurate or obsolete information

Answer 14

The fair credit reporting act

Question 15

What is policy replacement?

Answer 15

A new policy is issued while an existing policy is terminated or re-issued with a reduction in cash value

Question 16

What is the purpose of the agent’s report during the application process?

Answer 16

The agent’s report discusses the agent’s personal observations about the proposed insured that may help in the underwriting process

Question 17

what entities make up the Medical Information Bureau

Answer 17

Insurers

Question 18

What is the main responsibility of a company underwriting unit?

Answer 18

Risk selection

Question 19

When does an insurance policy go into effect?

Answer 19

When the policy is delivered and the premium is paid

Question 20

Insurance is a contract that protects the insured from what

Answer 20

Loss

Question 21

How may insurance policies be delivered to the insured?

Answer 21

They may be either personally delivered by an agent or mailed

Question 22

what are the three main instances when insurable interest exist in life insurance

Answer 22

Ensuring your own life, the life of a family member or the life of a business partner, or someone who has a financial obligation to the policy owner

Question 23

During which stage in the insurance process do introverts evaluate information that identifies adverse selection risks

Answer 23

Underwriting

Question 24

What is the name of the process that insurance companies used to determine whether or not an applicant is insurable

Answer 24

Underwriting

Question 25

who is responsibility is it to determine that all the questions on an insurance application are answered

Answer 25

The agent

Question 26

Who is a field underwriter?

Answer 26

Agent

Question 27

What type of report provide provides information about the applicants, hobbies habits, and financial status?

Answer 27

Investigative consumer report

Question 28

In insurance contracts, the insured is not legally bound to any particular action. However, the insurer is obligated to pay for losses covered by the policy. What contract element does this describe?

Answer 28

Unilateral

Question 29

What document describes the specific information about the policy?

Answer 29

Policy summary

Question 30

When would a misrepresentation on an insurance application be considered fraud

Answer 30

When it is intentional and material

Question 31

What type of reports may be used to assess risks associated with an applicant lifestyle and character?

Answer 31

Investigative consumer report

Question 32

What do individuals use to transfer their risk of loss to a larger group?

Answer 32

Insurance

Question 33

When must insurable interest exist in a life insurance policy?

Answer 33

At the time of application

Question 34

Informing an insurance contract when does acceptance usually occur

Answer 34

When the insurer approves a prepaid application

Question 35

If an applicant does not receive a copy of the new insurance policy who would be held responsible

Answer 35

The agent

Question 36

What term describes the fee a person pays an insurance company to receive coverage

Answer 36

Premium

Question 37

insurance contracts are unilateral. What does that mean?

Answer 37

Only one party makes a legally enforceable promise

Question 38

if an agent failed to obtain the applicant signature on the insurance application. What must the insurer do?

Answer 38

Send the application back to the applicants for signature

Question 39

You must have insurable interest in the insured

Answer 39

The policy owner

Question 40

What are the three types of risk rating classifications in life insurance?

Answer 40

Preferred standard and substandard

Question 41

When a change needs to be made on the application for insurance, which is the best method for correcting the information

Answer 41

Complete a new application or ask the applicant to initial the correction on the original application

Question 42

What two elements are necessary for a life insurance contract to have a legal purpose?

Answer 42

Insurable interest and consent

Question 43

In insurance, when is the offer usually made on a contract

Answer 43

With the insurance application is submitted

Question 44

How was the information obtained for an investigative consumer report?

Answer 44

Through interviews with the applicants associates, friends, and neighbors

Question 45

If an introvert needs to obtain information about the applicant from investigators, what is the insurer required to do?

Answer 45

Provide the applicant a disclosure authorization notice

Question 46

what is the best way to handle incomplete insurance applications?

Answer 46

Return the application to the applicant for completion

Question 47

insurance contracts are prepared by insurers and must be accepted by the insured on it as is basis. This describes what characteristic of an insurance contract.

Answer 47

Contract of adhesion

Question 48

what is insurance underwriting?

Answer 48

The process of risk selection and classification

Question 49

If an applicant for a life insurance policy and the potential insured are two different people what would be the underwriters main concern?

Answer 49

The existence of insurable interest between the applicant and the insured

Question 50

What's the risk classification with typically qualify for lower premiums?

Answer 50

Preferred

Question 51

When would a misrepresentation be considered material?

Answer 51

When it's may alter the underwriting decision

Question 52

What are the four elements of an insurance contract?

Answer 52

Agreement consideration, parties, and legal purpose

Question 53

When must the policy summary for a life insurance policy be delivered to the policy owner

Answer 53

At the time of policy delivery

Question 54

at what point does coverage begin when an agent issues a conditional receipt for a life insurance policy

Answer 54

Either on the dates of the application or the dates of the medical exam, whichever occurs last

Question 55

what is a warranty in an insurance contract

Answer 55

An absolutely true statement upon which the validity of the insurance contract is based