Life Health and Accident
Insurance Exam and
Notes Questions and
Answers
When completing the application, the agent would be expected to do all of the
following EXCEPT?
Ans- Set the final rates for the new policy
If after completing the application the agent finds that a question was missed.
The agent should?
Ans- Schedule another appointment with the applicant to properly complete
the application
All of the following must sign the application EXCEPT?
,Ans- The underwriter or beneifciary
If the agent collects the initial premium with the application and completes the
insurability conditional receipt and the applicant dies before the policy is
delivered, which of the following is correct?
Ans- Coverage will be provided if the policy is issued
What is insurance?
Ans- The transfer of the risk of loss from the individual or business entity to
an insurance company
What information is gathered in Parts 1 & 2 of the application?
Ans- Part 1: General information about the consumer
Part 2: Medical information concerning the beneficiary
What is the purpose of the agent's report?
Ans- Provides the agent's personal observations concerning the proposed
insured
,Who is required to sign an application for life insurance?
Ans- Both the agent and the proposed insured (usually the applicant) must sign
the application
What does representation mean and how does it differ from a warranty?
Ans- Representation are statements believed to be true to the best of one's
knowledge, Warranty's are an absolutely true statement upon which the validity
of the insurance policy depends.
When does an insurance policy go in effect if there's no premium with the
application?
Ans- When the money is collected; if there is no money there is no coverage
At what point does coverage begin when an agent issues a insurability
conditional receipt?
Ans- The coverage is effective either on the date of application or medical
exam whichever occurs last
, What is underwriting?
Ans- The risk selection and classification process
What is the purpose of the Fair Credit Reporting Act?
Ans- Establishes procedures that consumer-reporting agencies must follow in
order to ensure that records are confidential, accurate, relevant, and properly
used. Also protects consumers against the circulation of inaccurate or obsolete
information
What is the difference between a consumer report and an investigative
consumer report?
Ans- CR: Information regarding a consumer's credit, character, reputation or
habits collected through a reporting agency from employment records, credit
reports, and public sources
ICR: Information obtained through associates, friends, and neighbors of the
consumer
Insurance Exam and
Notes Questions and
Answers
When completing the application, the agent would be expected to do all of the
following EXCEPT?
Ans- Set the final rates for the new policy
If after completing the application the agent finds that a question was missed.
The agent should?
Ans- Schedule another appointment with the applicant to properly complete
the application
All of the following must sign the application EXCEPT?
,Ans- The underwriter or beneifciary
If the agent collects the initial premium with the application and completes the
insurability conditional receipt and the applicant dies before the policy is
delivered, which of the following is correct?
Ans- Coverage will be provided if the policy is issued
What is insurance?
Ans- The transfer of the risk of loss from the individual or business entity to
an insurance company
What information is gathered in Parts 1 & 2 of the application?
Ans- Part 1: General information about the consumer
Part 2: Medical information concerning the beneficiary
What is the purpose of the agent's report?
Ans- Provides the agent's personal observations concerning the proposed
insured
,Who is required to sign an application for life insurance?
Ans- Both the agent and the proposed insured (usually the applicant) must sign
the application
What does representation mean and how does it differ from a warranty?
Ans- Representation are statements believed to be true to the best of one's
knowledge, Warranty's are an absolutely true statement upon which the validity
of the insurance policy depends.
When does an insurance policy go in effect if there's no premium with the
application?
Ans- When the money is collected; if there is no money there is no coverage
At what point does coverage begin when an agent issues a insurability
conditional receipt?
Ans- The coverage is effective either on the date of application or medical
exam whichever occurs last
, What is underwriting?
Ans- The risk selection and classification process
What is the purpose of the Fair Credit Reporting Act?
Ans- Establishes procedures that consumer-reporting agencies must follow in
order to ensure that records are confidential, accurate, relevant, and properly
used. Also protects consumers against the circulation of inaccurate or obsolete
information
What is the difference between a consumer report and an investigative
consumer report?
Ans- CR: Information regarding a consumer's credit, character, reputation or
habits collected through a reporting agency from employment records, credit
reports, and public sources
ICR: Information obtained through associates, friends, and neighbors of the
consumer
