©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM. A+
Chapter 6 Life insurance Underwriting and
Policy Issue Exam Questions With Correct
Answers 100% Verified.
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this
may be considered a red flag for a(n) - Answer✔Answer: Anti-money laundering violation
The underwriting process involves all of these Except for? - Answer✔Answer: Policy Loan
K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - Answer✔Answer: Conditional
A medical information report (MIB) may disclose which of the following? - Answer✔Answer:
Prior use of marijuana
A statement made by an insured in an insurance application that must be true to the best of
one's knowledge and which becomes part of the contract is called? - Answer✔Answer: A
representation
Who is NOT required to sign a life insurance application? - Answer✔Answer: Beneficiary
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following
EXCEPT - Answer✔Answer: Signed HIPPA disclosure
In order for coverage on a non-medical insurance application to take effect the same day, the
producer must collect a signed application and - Answer✔Answer: Initial Premium
What is the purpose of a policy summary? - Answer✔Answer: It highlights the critical parts of
the policy issued
An incomplete life insurance application submitted to an insurer will result in which of these
actions? - Answer✔Answer: Application will be returned to the writing agent.
On January 8, an applicant filled out an application for a life insurance policy but did not include
the initial premium. The insurance company approved the application on January 14, and issued
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM. A+
the policy on January 15. The producer delivered the policy on January 26, and collected the
first premium. When did the coverage become effective? - Answer✔Answer: January 26
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT - Answer✔Answer: Free-look
period has expired
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How will the insurer handle this situation? - Answer✔Answer:
Policy was returned within the free look period , premium will be fully refunded.
What is the purpose of the U.S.A Patriot Act? - Answer✔Answer: Detect and deter terrorism
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
Answer✔Answer: Fair Credit Reporting Act
Which parts of a life insurance policy are guaranteed to be true? - Answer✔Answer: Warranty
Why must an insurance applicant answer all questions on the application? - Answer✔Answer:
Statements and representations on the application are part of the consideration for issuing a
policy.
D the agent met with a prospect and ended up selling an insurance policy. While filling out the
insurance application, D makes a mistake. In this situation, D MUST - Answer✔Answer: correct
the information and have the prospect initial the change.
On August 6, D submitted an application for a $50,000 life insurance policy and did not pay the
initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20, and D
explains what had recently taken place with his doctor. Which action should the producer then
take? - Answer✔Answer: collect initial premium along with a signed health statement.
Which of the following statements is Correct about an agent who is taking an insurance
application? - Answer✔Answer: The agent should have the applicant initial any changes made
on the application
Upon policy delivery, a signed good health statement is requested from the applicant. Why
would this be necessary? - Answer✔Answer: The initial premium was not submitted with the
application.
What is being delivered with a policy delivery? - Answer✔Answer: Insurance contract to the
proposed insured.
2
Chapter 6 Life insurance Underwriting and
Policy Issue Exam Questions With Correct
Answers 100% Verified.
When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this
may be considered a red flag for a(n) - Answer✔Answer: Anti-money laundering violation
The underwriting process involves all of these Except for? - Answer✔Answer: Policy Loan
K applies for a life insurance policy on herself and submits the initial premium with the
application. She is given a receipt by the agent stating that coverage begins immediately if the
application is approved. What kind of receipt was used? - Answer✔Answer: Conditional
A medical information report (MIB) may disclose which of the following? - Answer✔Answer:
Prior use of marijuana
A statement made by an insured in an insurance application that must be true to the best of
one's knowledge and which becomes part of the contract is called? - Answer✔Answer: A
representation
Who is NOT required to sign a life insurance application? - Answer✔Answer: Beneficiary
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following
EXCEPT - Answer✔Answer: Signed HIPPA disclosure
In order for coverage on a non-medical insurance application to take effect the same day, the
producer must collect a signed application and - Answer✔Answer: Initial Premium
What is the purpose of a policy summary? - Answer✔Answer: It highlights the critical parts of
the policy issued
An incomplete life insurance application submitted to an insurer will result in which of these
actions? - Answer✔Answer: Application will be returned to the writing agent.
On January 8, an applicant filled out an application for a life insurance policy but did not include
the initial premium. The insurance company approved the application on January 14, and issued
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM. A+
the policy on January 15. The producer delivered the policy on January 26, and collected the
first premium. When did the coverage become effective? - Answer✔Answer: January 26
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT - Answer✔Answer: Free-look
period has expired
Q applied for life insurance and submitted the initial premium on January 1. The policy was
issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How will the insurer handle this situation? - Answer✔Answer:
Policy was returned within the free look period , premium will be fully refunded.
What is the purpose of the U.S.A Patriot Act? - Answer✔Answer: Detect and deter terrorism
Which Federal law allows an insurer to obtain an inspection report on a potential insured? -
Answer✔Answer: Fair Credit Reporting Act
Which parts of a life insurance policy are guaranteed to be true? - Answer✔Answer: Warranty
Why must an insurance applicant answer all questions on the application? - Answer✔Answer:
Statements and representations on the application are part of the consideration for issuing a
policy.
D the agent met with a prospect and ended up selling an insurance policy. While filling out the
insurance application, D makes a mistake. In this situation, D MUST - Answer✔Answer: correct
the information and have the prospect initial the change.
On August 6, D submitted an application for a $50,000 life insurance policy and did not pay the
initial premium. On August 18, D went to his doctor complaining of chest pains and some tests
were given by the doctor. The life policy was delivered by the producer on August 20, and D
explains what had recently taken place with his doctor. Which action should the producer then
take? - Answer✔Answer: collect initial premium along with a signed health statement.
Which of the following statements is Correct about an agent who is taking an insurance
application? - Answer✔Answer: The agent should have the applicant initial any changes made
on the application
Upon policy delivery, a signed good health statement is requested from the applicant. Why
would this be necessary? - Answer✔Answer: The initial premium was not submitted with the
application.
What is being delivered with a policy delivery? - Answer✔Answer: Insurance contract to the
proposed insured.
2
