Marketing, Underwriting and Policy Delivery Flashcards
What is a declined risk?
n application for insurance that has been turned down
For applications submitted without premium, applicants must pay premium and complete a __________________________.
Statement Regarding Good Health.
True or False: An agent may not make changes to a life insurance application.
True.
Technically, only the applicant may make changes, and only prior to the application being submitted.
If proven untrue, may information obtained through a credit check be used to deny an application?
Untrue information obtained through a credit check may not be used to deny an application.
What tables predict the probability of death?
Mortality tables
When must the applicant be notified that consumer/credit background checks will be performed?
Within three days following a request for information
When should the agent review and collect signatures on a Notice Regarding Replacement form?
No later than the time of application
In order to represent an insurer, an agent must be ___________ by that company.
appointed by that company.
Who is a substandard risk?
An individual with a higher than average risk
True or False: The producer issues the insurance policy.
False.
Producers solicit appointments, complete applications, collect premiums, and submit applications for approval.
Name some items that affect policy premium.
Age, gender, health, occupation, hobbies, habits, family health, and travel outside of the country
When does coverage begin on a conditional receipt policy?
If the application is approved as applied for, coverage is immediately provided.
List some approved policy delivery methods.
Certified registered mail, first-class mail with signed receipt, and personal delivery
What information may be found in Section 1 of a life insurance policy?
Name, address, date of birth, salary, and occupation of the applicant
An approval type conditional receipt, dated 6/15, is approved on 9/1 as applied for. When did coverage become effective?
On 9/1, the date the policy is approved
When may changes to an application be made?
Changes may only be made prior to application submission.
What individual has better than average risk?
A preferred risk
What are the primary duties of an underwriter?
Assess risks, approve or deny applications, determine premiums, and protect the insurer against adverse selection
Which would have a lower premium, a standard or substandard risk?
A standard risk would have a lower premium
A ____________ application requires no information other than what is provided by the applicant.
nonmedical
What is the rating method that increases premiums by increasing the age classification of the insured?
The step-up-in-age rating method
What is a binding receipt?
One that provides immediate or unconditional coverage on the date the premium is received
When should an agent review the possibility of various background checks such as credit, MIB, or HIV?
At the time of the original application