CIC, CHAPTER 6, WORKBOOK questions with verified
answers
1. Which of the following is not one of four general purposes of signing
documents?
a) Efficiency and logistics
b) Ceremony
c) Evidence
d) Reinsurance Ans✓✓✓ (d) Reinsurance is a tool that is used to share
or transfer insured risks
2.* True or false* - If the estate is designated as the beneficiary of a life
insurance policy, policy proceeds will be subject to probate fees and
may be subject to the claims of creditors of the deceased. Ans✓✓✓
True
3. An agent must send a copy of a replacement disclosure form, signed
by the applicant, to the original insurer within _________________
working days of taking the application. Ans✓✓✓ 3. three
4. Questions asked in the application regarding family history relate to
_________________ parents and siblings. Ans✓✓✓ 4. biological
, 5. Insurers who receive a premium payment with an application may
issue a ______________ or a _________________ . Ans✓✓✓ 5.
temporary insurance agreement; conditional insurance receipt
6. True or false - Conditional insurance receipts provide insurance
coverage for a specific amount and for a specific period of time.
Ans✓✓✓ 6. False. A temporary insurance agreement provides
coverage for a specific amount and period of time.
7. Which of the following statements regarding the underwriting
process is incorrect?
a) The underwriting process begins when the insurance application is
received by the insurer.
b) The insurer has to make sure that the agent who submitted the
application has a national licence.
c) Most insurance companies operate a jet underwriting unit.
d) The applicant must have an insurable interest in the life to be
insured, otherwise an insurance policy cannot be issued. Ans✓✓✓ 7.
(b) Once the application is received by the underwriting office, the first
step in processing the application is to make sure the agent who signed
and submitted the application is licensed by the province in which the
application was completed.
answers
1. Which of the following is not one of four general purposes of signing
documents?
a) Efficiency and logistics
b) Ceremony
c) Evidence
d) Reinsurance Ans✓✓✓ (d) Reinsurance is a tool that is used to share
or transfer insured risks
2.* True or false* - If the estate is designated as the beneficiary of a life
insurance policy, policy proceeds will be subject to probate fees and
may be subject to the claims of creditors of the deceased. Ans✓✓✓
True
3. An agent must send a copy of a replacement disclosure form, signed
by the applicant, to the original insurer within _________________
working days of taking the application. Ans✓✓✓ 3. three
4. Questions asked in the application regarding family history relate to
_________________ parents and siblings. Ans✓✓✓ 4. biological
, 5. Insurers who receive a premium payment with an application may
issue a ______________ or a _________________ . Ans✓✓✓ 5.
temporary insurance agreement; conditional insurance receipt
6. True or false - Conditional insurance receipts provide insurance
coverage for a specific amount and for a specific period of time.
Ans✓✓✓ 6. False. A temporary insurance agreement provides
coverage for a specific amount and period of time.
7. Which of the following statements regarding the underwriting
process is incorrect?
a) The underwriting process begins when the insurance application is
received by the insurer.
b) The insurer has to make sure that the agent who submitted the
application has a national licence.
c) Most insurance companies operate a jet underwriting unit.
d) The applicant must have an insurable interest in the life to be
insured, otherwise an insurance policy cannot be issued. Ans✓✓✓ 7.
(b) Once the application is received by the underwriting office, the first
step in processing the application is to make sure the agent who signed
and submitted the application is licensed by the province in which the
application was completed.
