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XCEL Life, Accident, and Health Insurance FOR CALIFORNIA > MARKETING, UNDERWRITING & POLICY DELIVERY > Flashcards

MARKETING, UNDERWRITING & POLICY DELIVERY Flashcards

1
Q

the date listed on a receipt will always be a date that is ____ than the policy issue date

A

earlier

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2
Q

an applicant’s health history is usually found in _____ of a life insurance policy

A

section ll

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3
Q

where would an agent record personal observations regarding the applicant?

A

in the agent report

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4
Q

what are some of the negative results of submitting an incomplete application

A

its unprofessional, creates issuance delays, and may result in business lost to competitors or in lost commissions

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5
Q

what is a binding receipt?

A

one that provides immediate or unconditional coverage on the date the premium is received

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6
Q

what provision begins on the date a policy is delivered to an insured?

A

the free-look provision

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7
Q

if requested by an applicant, what credit information must be provided to the applicant?

A

the information report, the source of information, and how to challenge the information

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8
Q

what is another name for an average or ordinary risk?

A

standard risk

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9
Q

an approval type conditional receipt, dated 6/15, is approved on 9/1 as applied for. when did coverage become effective?

A

on 9/1 the date the policy is approved

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10
Q

A _____ application requires no information other than what is provided by the applicant

A

nonmedical

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11
Q

what does APS stand for

A

attending physician’s statement

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12
Q

for applications submitted without premium, applicants must pay premium and complete a ________

A

statement regarding good health

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13
Q

in order to represent an insurer, an agent must be ____ by that company

A

appointed

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14
Q

how does the percentage of normal rate method work?

A

by simply increasing the premium by a percentage of the standard rate

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15
Q

a ____ party contract requires three signatures

A

a third party contract

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16
Q

who is the field underwriting agent?

A

the agent who determines which risks are desireable and submits them to the underwriting department for approval

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17
Q

when does coverage begin if a policy has a conditional receipt based upon insurability?

A

coverage begins on the receipt date provided the application as applied for.

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18
Q

at policy delivery, what should the agent review with the insured?

A

coverage, coverage effective date, provisions, beneficiaries, premium, exclusions, riders and ownership rights

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19
Q

define the term warranty

A

a statement made by an applicant that is guaranteed to be absolutely true

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20
Q

what is the purpose of the MIB?

A

to compare collected health information in order to avoid adverse selection

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21
Q

if proven untrue, may information obtained through a credit check be used to deny an application?

A

untrue information obtained through a credit check may not be used to deny an application

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22
Q

do producer issues the insurance policy

A

no, producers solicit appointments, complete applications, collect premiums, and submit applications for approval

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23
Q

who is a substandard risk?

A

an individual with higher than average risk

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24
Q

what are representations

A

statements made by an applicant when answering questions on the application

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25
Q

what type of receipt provides coverage only on the date the application is approved?

A

an approval type condition receipt

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26
Q

when should an agent review the possibility of various background checks such a credit, MIB, or HIV?

A

at time of original application

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27
Q

what are the primary duties of an underwriter?

A

assess risks, approve or deny applications, determine premiums, and protect the surer against adverse selection

28
Q

when does coverage begin on a conditional receipt policy?

A

if the application is approved as applied for, coverage is immediately provided

29
Q

name the receipt that provides coverage “as long as a specific condition has been met or performed.”

A

a conditional receipt

30
Q

what individual has better than average risk?

A

a preferred risk

31
Q

an insurability type conditional receipt, dated 6/15, is approved as applied for on 9/1. when did coverage begin?

A

6/15 with conditional type receipt, coverage is effected on date of application if policy is issued as applied for

32
Q

what information may be found in section 1 of a life insurance policy?

A

personal information

33
Q

is signed authorization required from the applicant in order to test for the HIV virus?

A

yes

34
Q

what does the delivery of a policy to an insured constitute?

A

policy issue and acceptance

35
Q

name some items that effect policy premium

A

age, gender, health, occupation, hobbies, habits, family health, travel

36
Q

what tables predict the probability of death?

A

mortality tables

37
Q

what is a morbidity table?

A

a table used to predict the probability of illness or disability

38
Q

is coverage provided during the grace period?

A

yes

39
Q

list some approved policy delivery methods

A

certified registered mail, first class mail with signed receipt, a personal delivery

40
Q

list some approved policy delivery methods

A

certified registered mail, first class mail with signed receipt, and personal delivery

41
Q

when must the applicant be notified that consumer/credit background checks will be performed?

A

within three days following a request for information

42
Q

when must the applicant be notified that consumer/credit background check will be perfomed?

A

within three days following a request for information

43
Q

what is the rating method that increases premiums by increasing the age classification of the insured?

A

the step-up-in-age rating method

44
Q

when is a trial application used?

A

when an application is submitted to the insurer without an initial premium

45
Q

T or F: women statistically live longer than men; therefore, they have lower life insurance premiums.

A

true

46
Q

whenever a premium is paid by an applicant, the agent should provide a _____

A

receipt.

47
Q

T or F: an agent may not make changes to a life insurance application

A

true: technically, only the applicant may make changes, and only prior to the application being submitted

48
Q

T or F an agent may not make changes to a life insurance application

A

true, technically, only the applicant may make changes, and only prior to the application being submitted

49
Q

what is the principal tool used in determining an individual’s eligibility for insurance coverage

A

the application

50
Q

which would have a lower premium, a standard or substandard risk

A

premium

51
Q

who pays for the cost of an applicant’s medical exams and lab fees

A

the insurer underwriting the application

52
Q

who pays for the cost of an applicant’s medical exams and lab fees?

A

the insurer underwriting the application

53
Q

what does the fair credit reporting act allow

A

it gives a consumer or applicant the right to dispute credit reporting information

54
Q

what is declined risk

A

an application for insurance that has been turned down

55
Q

when should the agent review and collect signatures on a notice regarding replacement form?

A

no later than time of application

56
Q

what is the primary source of underwriting information

A

the original application

57
Q

the MIB is an intercompany ____ bank that stores information collected from previous _____

A

data bank, stores information collected from previous applications

58
Q

when may changes to an application be made

A

changes may only be made prior to application submission

59
Q

if a conditional receipt requires the applicant to take a medical exam, when is the earliest date coverage may begin

A

the date of the exam itself

60
Q

T or F: anyone may gain access to MIB information

A

false, access is only available to approved company representatives/underwriters.

61
Q

what is the most common method used to insure a substandard risk?

A

charging higher premiums

62
Q

when does the “notice to the applicant” regarding the fair credit reporting act need to given?

A

at the time of application

63
Q

what methods are used to insure a substandard risk?

A

higher premium, exclusion rider, lower benefit, and lower benefit time frame

64
Q

the date listed on a receipt will always be a date that is _______ than the policy issue date

A

the date listed on a receipt will always be a date that is earlier than the policy issue date

65
Q
A

XCEL Life, Accident, and Health Insurance FOR CALIFORNIA (19 decks)

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