5-LIFE INSURANCE UNDERWRITING AND POLICY ISSUE

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?

• Binding receipt

• Conditional receipt

• Warranty receipt

• Backdated receipt

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

• Guaranteed insurability rider

• Aviation exclusion

• Impairment rider

• Accidental death benefit rider

Which factor are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant

• Geographical location

• Source of income

• Risk classification

• Marital status

Why is an applicant’s signature required on a life insurance application?

• To attest that the statements on the application are accurate to the best of the applicant’s knowledge

• To attest that the statements on the application are warranties

• To give power of attorney to the producer if needed

• To attest that all statements on the application are guaranteed to be true

A statement made by an insured in an insurance application that must be true to the best of one’s knowledge and which becomes a apart of the contract is known as:

• An insuring agreement

• A mutual assent

• A warranty

• A representation

What is the initial source of underwriting for an insurance policy?

• Application containing statements from the insured

• MIB report (Medical information Report)

• Credit report

• Medical exam

A(n)______ contained in a life insurance policy stated that the policy will NOT cover certain risks.

• Elimination

• Exclusion

• Limitation

• Curtailment

A life insurance application may be rejected on the basis of all of these factors EXCEPT

• Medical history

• Hobbies

• Gender

• Weight

In order for a coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

• A medical information report

• The initial premium

• Forward it immediately to the insurer

• Attending physician statement

A medical information report (MIB) report may disclose which of the following:

• Prior preferred rating

• Prior use of marijuana

• Prior lapsing of policy

• Prior bankruptcy judgment