Underwriting And Policy Issue Quiz Flashcards
When a policy owner cash surrenders a universal life insurance policy in its early years, this may be considered a red flag for a(n):
Anti-money laundering violation
Life insurance companies are required to establish and maintain an anti-money laundering compliance program according to which federal regulation?
USA patriot act
Completes an application for life insurance, but does not pay the initial premium. All of these actions must occur before ems policy goes into effect, except:
Free-look period has expired
A life insurance application must be signed by all of these, except:
Beneficiary
Why is an applicants signature required on a life insurance application??
To attest that the statements on the application are accurate to the best of the applicant’s knowledge
All of these are considered sources of underwriting information about an applicant, except:
Rating services
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When they conditions of the receipt are met
Upon policy delivery, a signed good health statement is requested from the applicant. Why would this be necessary?
The initial premium was not submitted with the application
What is the purpose of a policy summary?
It highlights the critical parts of the policy issued
Before a life policies issued, which of these contract elements is necessary?
A signed application by the prospect
Under the USA patriot act, insurers are required to report receipt of cash payments in excess of:
$10,000
T is given a receipt after completing a life insurance application and paying the initial premium. Under this situation, T’s coverage is:
Conditional, depending on the insurer’s underwriting guidelines
What is the purpose of the USA patriot act?
Detect and deter terrorism
The reason for backdating a policy is:
To obtain a premium rate based on an earlier age
A(n) _______________ contained in a life insurance policy states that the policy will not cover certain risks
Exclusion
