Completing the Application... Q1

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT

• Delivery receipt

• Signed of premium

• Statement of good health

• Payment of premium

What is the purpose of a conditional receipt?

• It is intended to provide coverage on a date prior to the policy issue.

• It guarantees that a policy will be issued in the amount applied for.

• It serves as proof that the applicant has been determined insurable.

• It is given only to applicants who fully prepay the premium.

What do individuals use to transfer their risk of loss to a larger group?

• Indemnity

• Insurance

• Insurable interest

• Exposure

Stranger-originated life insurance policies are in direct opposition to the principle of

• Indemnity.

• Insurable interest.

• Law of large numbers.

• Good faith.

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

• Draw a line through the 1st answer, record the correct answer, and have the applicant initial the change.

• Note on the application the reason for the change.

• Destroy the application and complete a new one.

• Erase the incorrect answer and record the correct answer.

Insurance is the transfer of

• Peril.

• Risk.

• Loss.

• Hazard.

If an applicant for a life insurance policy and person to be insured by the policy are 2 different people, the underwriter would be concerned about

• The gender of the applicant.

• The type of policy requested.

• Which individual will pay the premium.

• Whether an insurable interest exists between the individuals.

The Medical Information Bureau (MIB) was created to protect

• Medical examiners that perform insurance physical examinations.

• Insurance companies from adverse selection by high risk persons.

• Insurance departments from lawsuits by policy owners.

• Insureds from unreasonable underwriting requirements by the insurance companies.

Who makes up the Medical Information Bureau?

• Insurers

• Hospitals

• Former insured

• Physicians and paramedics

The Federal Fair Credit Reporting Act

• Regulates consumer reports.

• Protects customer privacy.

• Regulates telemarketing.

• Prevents money laundering.