FL 2-15 Chapter 5 Practice Questions
An insured is upset that her new health insurance policy was delivered to her by certified mail
and not through her agent. Which of the following is true? - ANS-There is nothing wrong with
this form of policy delivery.
Who must pay for the cost of a medical examination required in the process of underwriting? -
ANS-Insurer
The insurance policy, together with the policy application and any added riders form what is
known as a(n) - ANS-Entire contract.
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit
report may be requested? - ANS-At the time of application
What is the term used for an applicant's written request to an insurer for the company to issue a
contract, based on the information provided? - ANS-Application
On a health insurance application, a signature is required from all of the following individuals
EXCEPT - ANS-The spouse of the policyowner.
An applicant for a health insurance policy returns a completed application to her agent, along
with a check for the first premium. She receives a conditional receipt two weeks later. Which of
the following has the insurer done by this point? - ANS-Neither approved the application nor
issued the policy
What is the best way to change an application? - ANS-Start over with a fresh application
An insurer is attempting to determine the insurability of an applicant and decides to obtain
medical information from several different sources. Which entity must be notified of the
investigation? - ANS-The applicant
Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The
agent informs the insured of this change, and he accepts it. In response, the agent must -
ANS-Have the insured sign a statement acknowledging that he is aware of the change.
What phase begins after a new policy is delivered? - ANS-Free-look period
Which of the following is true about the requirements regarding HIV exams? - ANS-The
applicant must give prior informed written consent.
In a replacement situation, all of the following must be considered EXCEPT - ANS-Assets.
An insured is upset that her new health insurance policy was delivered to her by certified mail
and not through her agent. Which of the following is true? - ANS-There is nothing wrong with
this form of policy delivery.
Who must pay for the cost of a medical examination required in the process of underwriting? -
ANS-Insurer
The insurance policy, together with the policy application and any added riders form what is
known as a(n) - ANS-Entire contract.
To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit
report may be requested? - ANS-At the time of application
What is the term used for an applicant's written request to an insurer for the company to issue a
contract, based on the information provided? - ANS-Application
On a health insurance application, a signature is required from all of the following individuals
EXCEPT - ANS-The spouse of the policyowner.
An applicant for a health insurance policy returns a completed application to her agent, along
with a check for the first premium. She receives a conditional receipt two weeks later. Which of
the following has the insurer done by this point? - ANS-Neither approved the application nor
issued the policy
What is the best way to change an application? - ANS-Start over with a fresh application
An insurer is attempting to determine the insurability of an applicant and decides to obtain
medical information from several different sources. Which entity must be notified of the
investigation? - ANS-The applicant
Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The
agent informs the insured of this change, and he accepts it. In response, the agent must -
ANS-Have the insured sign a statement acknowledging that he is aware of the change.
What phase begins after a new policy is delivered? - ANS-Free-look period
Which of the following is true about the requirements regarding HIV exams? - ANS-The
applicant must give prior informed written consent.
In a replacement situation, all of the following must be considered EXCEPT - ANS-Assets.
