Life Insurance Sales And Suitability ( Application, Underwriting, And Policy Delivery) Unit #2 Flashcards
What is the least expensive payment mode ?
Annual payment is the least expensive
What is the most expensive payment mode ?
Monthly payment mode is the most expensive ?
What is insurers expenses ?
Insurers expenses are paid through a loading charge ( sales charges) assessed to insureds and built into their premiums
What is substances risk ?
A substandard risk pays higher premiums because the insured represents a higher premiums because the insured represents a higher risk to an insurer.
What is underwriters ?
Underwriting is classify, selecting, and rate risks.
What’s is insurable interest ?
Losing something of value
Can the owner, applicant, and the insured be the same person In a life insurance contact?
No, the owner, applicant, and insured could be up to three different people in a life insurance contract.
What does the Pre- selector do?
The agent must solicit prospects that represent a good risk for the insurer
What are the three classification for risk?
Preferred, standard, substandard
Who can an insurer obtain permission from an applicant ?
An insurer can obtain attending physician statement provided they have written permission from an applicant
What is the purpose of (MIB) and who funds (MIB)?
It is funded by the insurance company and its purpose is to detect concealment of physical medical condition
If the applicant makes a mistake what should you do ?
The applicant not the beneficiaries must initial all changes to an application.
What’s are the three parts of an application?
Part 1: General application
Part 2: Medical Information
Part 3: Agents Report
What’s substandard risk ?
Tobacco, most expensive range
Standard risks?
Non-tobacco, average range
