Question: An underwriter determines that an applicant’s risk should be recategorized due to a health issue. This policy may be issued with a(n)?
Answer: -exclusion for the medical condition.
( In this situation, the policy may be issued with an exclusion for the medical problem.)
Question: Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT?
Answer: “Signed HIPAA disclosure”
(Upon delivery of a rated life insurance policy, the Producer must obtain all of these EXCEPT a “Signed HIPAA disclosure”. The HIPAA disclosure should be taken at the time of sale with the application.)
Question: An applicant’s medical information received from the Medical Information Bureau (MIB) may be furnished to the?
Answer: – applicant’s physician.
(Information received from the Medical Information Bureau about a proposed insured may be released to the proposed insured’s physician.)
Question: Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
Answer: – Complete the application and review the information with the customer prior to obtaining the customer’s signature, then send the application off to the insurance company .
Question: All of these are considered sources of underwriting information about an applicant EXCEPT?
Answer: – Rating Services.
(All of these are valid sources to obtain underwriting information about an applicant EXCEPT for a rating service (A.M. Best, Standard & Poor’s).
Question: The underwriting process involves all of these EXCEPT for?
Answer: – Policy loan.
( A policy loan is not a factor in the underwriting process.)
Question: An incomplete life insurance application submitted to an insurer will result in which of these actions?
Answer: – Application will be returned to the writing agent.
( If the company discovers a mistake or incompletion, it usually returns the application to the producer.)
Question: What action should a producer take if the initial premium is NOT submitted with the application?
Answer: – Forward the application to the insurer without the initial premium.
( In this situation, the producer should submit the application to the insurance company without the premium. However, if a premium is not paid with the application, the policy will not become valid until the initial premium is collected.)
Question: An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
Answer: – When the conditions of the receipt are met.
(A conditional receipt indicates that certain conditions must be met in order for the insurance coverage to go into effect)
Question: At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?
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Answer: At the time of application.
( With life insurance, insurable interest must exist only at the policy inception.)