Completing the Application,
Underwriting, and Delivering the
Policy
Which of the following is the basic source of information used by the company
in the risk selection process?
A. Consumer report
B. Application
C. Agent's report
D. Warranty - Correct Answer ✔️✔️Application
When would a misrepresentation on the insurance application be considered
fraud?
A. Never: statements by the applicant are only representations.
B. When the application is incomplete
,C. Any misrepresentation is considered fraud.
D. If it is intentional and material - Correct Answer ✔️✔️If it is intentional
and material
Which of the following is a risk classification used by underwriters for life
insurance?
A. Poor
B. Normal
C. Excellent
D. Standard - Correct Answer ✔️✔️Standard
Insurance is the transfer of
A. Peril.
B. Risk.
C. Loss.
,D. Hazard. - Correct Answer ✔️✔️Risk
Why should the producer personally deliver the policy when the first premium
has already been paid?
A. To ensure the producer gets paid commission
B. To find out how the family has been doing since the initial presentation
C. To make sure the policy is not stolen or lost
D. To help the insured understand all aspects of the contract - Correct Answer
✔️✔️To help the insured understand all aspects of the contract
In insurance, an offer is usually made when
A. An applicant submits an application to the insurer.
B. The insurer approves the application and receives the initial premium.
C. The agent hands the policy to the policyholder.
, D. An agent explains a policy to a potential applicant. - Correct Answer ✔️✔
️An applicant submits an application to the insurer.
An applicant who receives a preferred risk classification qualifies for
A. Higher premiums than a person who receives a sub-standard risk.
B. Higher premiums than a person who receives a standard risk.
C. Lower premiums than a person who receives a standard risk.
D. Dividends payable for lack of claims. - Correct Answer ✔️✔️Lower
premiums than a person who receives a standard risk.
In insurance policies, the insured is not legally bound to any particular action in
the insurance contract, but the insurer is legally obligated to pay losses covered
by the policy. What contract element does this describe?
A. Conditional
B. Unilateral
Underwriting, and Delivering the
Policy
Which of the following is the basic source of information used by the company
in the risk selection process?
A. Consumer report
B. Application
C. Agent's report
D. Warranty - Correct Answer ✔️✔️Application
When would a misrepresentation on the insurance application be considered
fraud?
A. Never: statements by the applicant are only representations.
B. When the application is incomplete
,C. Any misrepresentation is considered fraud.
D. If it is intentional and material - Correct Answer ✔️✔️If it is intentional
and material
Which of the following is a risk classification used by underwriters for life
insurance?
A. Poor
B. Normal
C. Excellent
D. Standard - Correct Answer ✔️✔️Standard
Insurance is the transfer of
A. Peril.
B. Risk.
C. Loss.
,D. Hazard. - Correct Answer ✔️✔️Risk
Why should the producer personally deliver the policy when the first premium
has already been paid?
A. To ensure the producer gets paid commission
B. To find out how the family has been doing since the initial presentation
C. To make sure the policy is not stolen or lost
D. To help the insured understand all aspects of the contract - Correct Answer
✔️✔️To help the insured understand all aspects of the contract
In insurance, an offer is usually made when
A. An applicant submits an application to the insurer.
B. The insurer approves the application and receives the initial premium.
C. The agent hands the policy to the policyholder.
, D. An agent explains a policy to a potential applicant. - Correct Answer ✔️✔
️An applicant submits an application to the insurer.
An applicant who receives a preferred risk classification qualifies for
A. Higher premiums than a person who receives a sub-standard risk.
B. Higher premiums than a person who receives a standard risk.
C. Lower premiums than a person who receives a standard risk.
D. Dividends payable for lack of claims. - Correct Answer ✔️✔️Lower
premiums than a person who receives a standard risk.
In insurance policies, the insured is not legally bound to any particular action in
the insurance contract, but the insurer is legally obligated to pay losses covered
by the policy. What contract element does this describe?
A. Conditional
B. Unilateral
