Primerica Life Insurance Chapter 1 Exam Questions with Latest Update

Underwriting - ANSWER-reviewing, selecting, and/or rejecting applications for insurance Field Underwriting - ANSWER-agent meets with the proposed insured room complete the application Application - ANSWER-the basic source of underwriting information; it has three parts: 1: general information, 2: medical information, 3: Agent's report (not part of contract) Required Signatures - ANSWER-agent and the proposed insured (usually the applicant) must sign the application, and the owner, if different Change in the Application - ANSWER-changes much be initialed by the applicant or a new application must be complicated; NEVER use "white out" Incomplete Application - ANSWER-application needs to be returned for completion; if issued with unanswered questions, the contract is interpreted as if the insurer waved the right to the answer Warranty - ANSWER-an absolutely true statement Representation - ANSWER-a statement believed to be true to the best of one's knowledge Misrepresentation - ANSWER-answers that are intentionally untrue; a lie Conditional Receipt - ANSWER-effective the date of the application or the date of the medical exam, whichever occurs last, if the first premium is paid and the police is issued as applied for Replacement - ANSWER-terminating an existing policy or letting it lapse and replacing it with a new policy Insurable Interest - ANSWER-Financial interest in the life of another person; must exist at the time of application Paramedical Report - ANSWER-Medical exam completed by a paramedic or registered nurse Attending Physician's Statement (APS) - ANSWER-Statement from a physician who has treated the applicant in the past