Life insurance Basics

Question 1

Policy Summary

Answer 1

A document that’s specify the critical segments of an insured life insurance policy, known as policy summary

Question 2

Disclosure of authorization response?

Answer 2

A disclosure authorization response is not considered a source of underwriting information

Question 3

Fair credit reporting act

Answer 3

To protect the rights of consumers to whom an inspection or credit report has been requested Congress enacted the fair reporting act in 1970

Question 4

Representations

Answer 4

The proposed insured statements on a life insurance application are considered to be representations

Question 5

Purpose of medical information, Bureau MIB

Answer 5

Was formed for the purpose of aiding underwriters and evaluating risk

Question 6

National Association of insurance underwriters

Answer 6

Is NOT a source of information that may aid an underwriter in determining whether to underwrite a risk

Question 7

Class designation

Answer 7

All surviving children is an example of naming beneficiary by class designation

Question 8

Irrevocable beneficiary

Answer 8

And irrevocable beneficiary designation, prohibits the policy owners for making any changes to the policy without the beneficiaries written consent

Question 9

1035 tax-free exchange

Answer 9

Is the IRS tax code that allows the rollover of non-qualified annuities to a new annuity or life policy of equal value

Question 10

Interest only

Answer 10

The settlement option that allows proceeds to remain with ensure in their earnings to be paid to the beneficiary on a monthly basis

Question 11

Common disaster clause

Answer 11

With a common disaster provision a policy owner can be sure that if both the insured and the primary beneficiary diet within a short period of time, the death benefit will be paid to the contingent beneficiary

Question 13

Conversion

Answer 13

When uninsured individual changes his or her group insurance to an individual policy with the same insurer of the termination employer

Question 14

Endowment policy

Answer 14

A type of insurance policy, which provides a payment of the face amount at the end of a specific period if the shirt still alive

Question 15

Substandard risk

Answer 15

An individual who is not acceptable by insured at standard rates because of health, history, occupation, or hobbies

Question 16

Investigate consumer report

Answer 16

An investigate consumer report is detailed report that contains information on a consumer character general reputation personal characteristics