Chapter 6 Life insurance Underwriting and
Policy Issue
A $20,000 life insurance policy application is completed, however the producer does not collect
the initial premium. At what point does the coverage go into effect? - ANS-Answer: When the
applicant receives the policy and pays the initial premium.
A life insurance application may be rejected on the basis of all these factors Except? -
ANS-Answer: Gender
A life insurance application must be signed by all of these Except? - ANS-Answer: Beneficiary
A medical information report (MIB) may disclose which of the following? - ANS-Answer: Prior
use of marijuana
A pilot applies for Life insurance. The insurer approves the application with a $10 additional
monthly premium modification due to the risk involved. The pilot declines the additional premium
modification. The insurer will then likely issue the coverage with a(n) - ANS-Answer: Aviation
Exclusion
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? - ANS-Answer: A
representation
A student pilot can pay regular premium costs for her life insurance policy with the addition of
which of the following? - ANS-Answer: Aviation Exclusion
A(n) ____ contained in a life insurance policy states that the policy will NOT cover certain risks?
- ANS-Answer: Exclusion
ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation, the
insurer has - ANS-Answer: Waived one of its legal rights
Agent J takes an application and initial premium from an applicant and sends the application
and premium check to the insurance company. The insurance company returns the check back
to J because the check is made out to J instead of the insurance company. What action should J
take? - ANS-Answer: Return to the customer, collect a new check made out to the insurance
company, and send the new check out to the insurance company.
All are true statements regarding the underwriting process, EXCEPT: - ANS-Answer: AIDS and
HIV virus exams can be conducted in a discriminatory fashion.
All of these are considered sources of underwriting information about an applicant EXCEPT -
ANS-Answer: Rating services
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial
premium. When will the policy become effective? - ANS-Answer: When the conditions of the
receipt are met.
An applicant's medical information received from the Medical Information Bureau (MIB) may be
furnished to the - ANS-Answer: applicant's physician
Policy Issue
A $20,000 life insurance policy application is completed, however the producer does not collect
the initial premium. At what point does the coverage go into effect? - ANS-Answer: When the
applicant receives the policy and pays the initial premium.
A life insurance application may be rejected on the basis of all these factors Except? -
ANS-Answer: Gender
A life insurance application must be signed by all of these Except? - ANS-Answer: Beneficiary
A medical information report (MIB) may disclose which of the following? - ANS-Answer: Prior
use of marijuana
A pilot applies for Life insurance. The insurer approves the application with a $10 additional
monthly premium modification due to the risk involved. The pilot declines the additional premium
modification. The insurer will then likely issue the coverage with a(n) - ANS-Answer: Aviation
Exclusion
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? - ANS-Answer: A
representation
A student pilot can pay regular premium costs for her life insurance policy with the addition of
which of the following? - ANS-Answer: Aviation Exclusion
A(n) ____ contained in a life insurance policy states that the policy will NOT cover certain risks?
- ANS-Answer: Exclusion
ABC Insurance Company has accepted a life insurance application which contains unanswered
questions. The company then makes the application part of the life contract. In this situation, the
insurer has - ANS-Answer: Waived one of its legal rights
Agent J takes an application and initial premium from an applicant and sends the application
and premium check to the insurance company. The insurance company returns the check back
to J because the check is made out to J instead of the insurance company. What action should J
take? - ANS-Answer: Return to the customer, collect a new check made out to the insurance
company, and send the new check out to the insurance company.
All are true statements regarding the underwriting process, EXCEPT: - ANS-Answer: AIDS and
HIV virus exams can be conducted in a discriminatory fashion.
All of these are considered sources of underwriting information about an applicant EXCEPT -
ANS-Answer: Rating services
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial
premium. When will the policy become effective? - ANS-Answer: When the conditions of the
receipt are met.
An applicant's medical information received from the Medical Information Bureau (MIB) may be
furnished to the - ANS-Answer: applicant's physician
