LIFE INSURANCE EXAM ILLINOIS COMPLETE
STUDY GUIDE WITH SOLVED QUESTIONS
◉ insurable interest
(General Concept).
Answer: - must exist at the time of the application
- insuring one's own life, family member, or a business partner
◉ Solicitation and sales presentation.
Answer: - illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must
be provided at the time of application
- policy summary is a description of features and benefits of the
policy being issued and must be provided when the policy is
delivered.
◉ Underwriting (Field underwriting (by agent).
Answer: - application completed and signed
- agent's report: agent's observation about the application that can
assist in underwriting
-premiums with application and conditional receipts
,◉ underwriting ( company underwriting).
Answer: - multiple sources of information: applications, consumer
reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard,
preferred
◉ Underwriting (Federal Regulation).
Answer: - Fair Credit Reporting Act: protect consumers against
circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity
Reports Rules
◉ Premium Determination.
Answer: - 3 key Factors for life insurance: mortality, interest, and
expense
- Mode: the more frequently premium is paid, the higher the
premium
◉ Policy Issue and Delivery.
Answer: Effective date of coverage - if the premium is not paid with
the application, the agent must obtain the premium and a statement
of continued good health at the time of the policy delivery
◉ Agent/ Producer.
, Answer: a legal representative of an insurance company; the
classification of producers usually includes agents and brokers'
agents are the agents of the insurer
◉ Applicant of proposed insured.
Answer: a person applying for insurance
◉ Beneficiary.
Answer: a person who receives the benefits of an insurance policy
◉ Broker.
Answer: an insurance producer who is not appointed by an
insurance company and who represents the client
◉ Death benefits.
Answer: the amount paid upon death of the insured in a life
insurance policy
◉ Estate.
Answer: a person's net worth
◉ Insurance policy.
STUDY GUIDE WITH SOLVED QUESTIONS
◉ insurable interest
(General Concept).
Answer: - must exist at the time of the application
- insuring one's own life, family member, or a business partner
◉ Solicitation and sales presentation.
Answer: - illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must
be provided at the time of application
- policy summary is a description of features and benefits of the
policy being issued and must be provided when the policy is
delivered.
◉ Underwriting (Field underwriting (by agent).
Answer: - application completed and signed
- agent's report: agent's observation about the application that can
assist in underwriting
-premiums with application and conditional receipts
,◉ underwriting ( company underwriting).
Answer: - multiple sources of information: applications, consumer
reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard,
preferred
◉ Underwriting (Federal Regulation).
Answer: - Fair Credit Reporting Act: protect consumers against
circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity
Reports Rules
◉ Premium Determination.
Answer: - 3 key Factors for life insurance: mortality, interest, and
expense
- Mode: the more frequently premium is paid, the higher the
premium
◉ Policy Issue and Delivery.
Answer: Effective date of coverage - if the premium is not paid with
the application, the agent must obtain the premium and a statement
of continued good health at the time of the policy delivery
◉ Agent/ Producer.
, Answer: a legal representative of an insurance company; the
classification of producers usually includes agents and brokers'
agents are the agents of the insurer
◉ Applicant of proposed insured.
Answer: a person applying for insurance
◉ Beneficiary.
Answer: a person who receives the benefits of an insurance policy
◉ Broker.
Answer: an insurance producer who is not appointed by an
insurance company and who represents the client
◉ Death benefits.
Answer: the amount paid upon death of the insured in a life
insurance policy
◉ Estate.
Answer: a person's net worth
◉ Insurance policy.
