Life, Health and Accident Insurance Exam and Notes Latest Update with Verified Solutions

Life, Health and Accident Insurance Exam and Notes Latest Update with Verified Solutions When completing the application, the agent would be expected to do all of the following EXCEPT? Set the final rates for the new policy If after completing the application the agent finds that a question was missed. The agent should? Schedule another appointment with the applicant to properly complete the application All of the following must sign the application EXCEPT? 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? Coverage will be provided if the policy is issued What is insurance? 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? Part 1: General information about the consumer Part 2: Medical information concerning the beneficiary What is the purpose of the agent's report? Provides the agent's personal observations concerning the proposed insured Who is required to sign an application for life insurance? 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? 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? 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? The coverage is effective either on the date of application or medical exam whichever occurs last What is underwriting? The risk selection and classification process What is the purpose of the Fair Credit Reporting Act? 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? 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 How does a substandard risk policy differ from a standard risk? SR: Average risk, representative of the majority of people their age with similar lifestyles SSR (high exposure): not at standard rates because of physical condition, personal or family history of disease, occupation, or dangerous habits, higher premiums When is a policy delivered? Policy is delivered when the insured receives it When would an insured be required to sign a statement of good health? When there was no premium received between the time of delivery and