Life & Health Insurance - Alabama Questions and Answers Solved 100% Correct!!

Backdating is usually no more than __ months. - Answer six What are the required signatures for life insurance application? - Answer insured, producer/agent, and applicant What are the characteristics of a 'conditional' receipt? - Answer -premium paid with application -insurance effective later of: date application completed and signed or medical exam (if required) -must be standard or preferred risk (can be determined after death) What are the characteristics of a 'binding' receipt? - Answer it is temporary and not common in life insurance What are the underwriting sources of information? - Answer - application (primary source) - medical exams & testing - attending physician statement (aps) - AIDS testing (applications may not ask about sexual orientation, testing is not based on geographical location, and it requires insured's written consent) - Medical Information Bureau (application CANNOT be denied solely on MIB info, insureds must be informed of MIB, and MIB gets info from insurance companies) - Consumer reports (insured must be informed) - Investigative Reports (insured must give consent) What are the classifications of risks? - Answer 1. standard 2. preferred 3. substandard 4. declined Things to know about "Statement of Good Health" - Answer - required if no premium with application - if health changed - agent CANNOT deliver policyThings to know about the effective date of coverage - Answer - terms of conditional receipt is issued - substandard and pays additional premium - date of policy delivery - no receipt - policy delivery date if premium paid at delivery Things to know about Fair Credit Reporting Act - Answer - third party info - notice to applicant required - consumers have rights and can dispute information in files - penalty: fines (max of $5,000) and/or imprisonment (one year) Things to know about U.S. Patriot Act - Answer - designed to prevent and detect money laundering and financing of terrorism - report suspicious activity Things to know about ERISA - Answer - protects participants in employee benefit plans - qualified pension plans and group insurance - reporting and disclosure information for plan participants Things to know about insurable interest - Answer - a risk of loss (assumed in one's self and relationships) - must be proven before policy can be purchased - the relationship doesn't have to exist at death What are personal uses of life insurance? - Answer - survivor protection - mortgage payoff - estate creation - estate conservation - liquidity - cash accumulation