Life Producer Exam Questions
An insurance company that transfers a risk to another company is called... - correct
answer-The ceding company
An applicant submitted an application to an insurer without an initial premium. What is this
considered? - correct answer-An invitation to make an offer
If one party in a contract gives a legally enforceable promise, but not the other, it is called a...
- correct answer-Unilateral contract
An insurance company incorporated in Indiana, with its home office in Texas, is licensed to
conduct business in all states except Pennsylvania. In Texas, this company would best be
described as which of the following type of insurers? - correct answer-Foreign
Which parties are not required to sign an application for life insurance? - correct answer-The
beneficiary
An insurance company doing business in the same state it was incorporated in is a... -
correct answer-Domestic insurer
Statements made by an applicant for insurance in the application are considered to be... -
correct answer-Representations
John applies for a life insurance policy, gives his agent the first months' premium and
receives a conditional receipt. Before John receives his policy, he dies in a car accident.
Which of the following scenarios best describes the insurance company's course of action? -
correct answer-They will pay the claim as long as he would have been approved for the plan,
coverage and premium rate he applied for
Sources of Insurability Information - correct answer-Application, agent's report and MIB
report (NEVER beneficiary designation)
The type of contract where one party creates the contract terms and the other party must
accept the terms unconditionally is a... - correct answer-Contract of adhesion
Statement of Good Health - correct answer-- To make sure the insured has remained in
good health during the underwriting process
- Obtained when a policy is delivered where no initial premium was collected
- Obtained before an agent leaves the policy with the insured
***NOT obtained when a policy is delivered where a conditional receipt was issued
Doctrine of Insurable Interest - correct answer-It must exist at the time of application
An insurance company that transfers a risk to another company is called... - correct
answer-The ceding company
An applicant submitted an application to an insurer without an initial premium. What is this
considered? - correct answer-An invitation to make an offer
If one party in a contract gives a legally enforceable promise, but not the other, it is called a...
- correct answer-Unilateral contract
An insurance company incorporated in Indiana, with its home office in Texas, is licensed to
conduct business in all states except Pennsylvania. In Texas, this company would best be
described as which of the following type of insurers? - correct answer-Foreign
Which parties are not required to sign an application for life insurance? - correct answer-The
beneficiary
An insurance company doing business in the same state it was incorporated in is a... -
correct answer-Domestic insurer
Statements made by an applicant for insurance in the application are considered to be... -
correct answer-Representations
John applies for a life insurance policy, gives his agent the first months' premium and
receives a conditional receipt. Before John receives his policy, he dies in a car accident.
Which of the following scenarios best describes the insurance company's course of action? -
correct answer-They will pay the claim as long as he would have been approved for the plan,
coverage and premium rate he applied for
Sources of Insurability Information - correct answer-Application, agent's report and MIB
report (NEVER beneficiary designation)
The type of contract where one party creates the contract terms and the other party must
accept the terms unconditionally is a... - correct answer-Contract of adhesion
Statement of Good Health - correct answer-- To make sure the insured has remained in
good health during the underwriting process
- Obtained when a policy is delivered where no initial premium was collected
- Obtained before an agent leaves the policy with the insured
***NOT obtained when a policy is delivered where a conditional receipt was issued
Doctrine of Insurable Interest - correct answer-It must exist at the time of application
