, Insurance
(General concept) - CORRECT ANSWERS-- transfers the risk of loss from an individual
to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - CORRECT ANSWERS-- must exist at the time of the application
- insuring one's own life, family member, or a business partner
Solicitation and sales presentation - CORRECT ANSWERS-- 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) - CORRECT ANSWERS-- 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) - CORRECT ANSWERS-- multiple sources of
information: applications, consumer reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - CORRECT ANSWERS-- 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 - CORRECT ANSWERS-- 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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-a person applying for insurance
(General concept) - CORRECT ANSWERS-- transfers the risk of loss from an individual
to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - CORRECT ANSWERS-- must exist at the time of the application
- insuring one's own life, family member, or a business partner
Solicitation and sales presentation - CORRECT ANSWERS-- 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) - CORRECT ANSWERS-- 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) - CORRECT ANSWERS-- multiple sources of
information: applications, consumer reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - CORRECT ANSWERS-- 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 - CORRECT ANSWERS-- 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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-a person applying for insurance
