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WorksheetsNational 2023 Life & Health
Total questions: 105
Worksheet time: 53mins
A policyowner returned a newly issued policy one week after the policy was delivered by the producer and received a refund of all premiums paid. Which of the following policy sections covers the situation described?
A. Consideration clause
B. Grace Period Provision
C. Incontestable period provision
D. Free Look provision
An employee who owns an individual Disability Income policy is injured in an automobile accident and files Proof of Loss with the insurance company. Under the Payment of Claims provision in the policy, the company will likely pay the policy benefits to the:
A. insured's employer
B. insured's attending physician if the insured has assigned the benefits
C. over-utilization of medical services
D. insured
Which of the following is TRUE of life settlements?
A. They are the same as Accelerated Death Benefits
B. Any insured is eligible to enter into one.
C. They involve a change of owner and beneficiary.
D. Only terminally ill insureds can be considered one
A major medical policy insured is injured in an auto collision during a police chase. The occupants in the police car are killed. The insured is convicted of reckless driving and manslaughter. If the insured files a claim, the insurance company will MOST likely take which of the following actions?
A. Pay full benefits
B. Pay partial benefits
C. Deny the claim only
D. Deny the claim and return the premiums paid
A producer must deliver an Outline of Coverage to a prospective insured who is eligible for Medicare at which of the following times?
A. Before the application is taken
B. After the application is signed
C. When the policy is delivered
D. When the prospect requests it.
R, a self-employed stockbroker, becomes totally disabled on January 1 and receives $1,500 a month for the next twelve months from her own individual disability income policy, for which she had paid the premium. How much of this income is subject to federal income tax?
A. $18,000
B. $12,800
C. $9,000
D. $0
The purpose of the USA PATRIOT Act is to:
A. Detect criminal activity
B. encourage patriotism among producers
C. require a licensed producer to swear to uphold the commission
D. authorize insurance companies to order credit checks on their producers
The Z Company takes out a Key Employee policy on its director of operations. Several years later, the employee leaves the Company, joins A company and is killed in an automobile accident while the Key Employee policy is still in force. In the insurance company will pay the proceeds to which the following entities?
A. The insured's estate
B. A company
C. Z company
D. The insured's spouse
Which of the following policy provisions is designed to protect the insurance company from adverse selection by certain high applicants?
A. Nonforfeiture options
B. Suicide clause
C. Grace period
D. Settlement options
Which of the following statements is CORRECT about the benefits of a group Short-term Disability Income policy?
A. They are not payable for accidents covered by Workers' Company.
B. They are payable for accidents covered by Workers' Compensation benefits
C. They are payable when expenses exceed Workers' Compensation benefits.
D. They are payable when expenses are less than Workers' Compensation
Which of the following statements is CORRECT about a Disability Income policy with a Guaranteed Insurability rider?
A. The insurance company guarantees the premium rate for the life of the policy.
B. The insured must periodically provide proof of insurability to the insurance company
C. The insured may periodically increase the amount of benefits payable under the policy
D. The insurance company must exchange the original policy for a new one at the insurability date
Under federal law, a tax exempt Health Savings Account can only be opened for an individual who is:
A. covered by a qualified High Deductible Health Plan
B. covered by Long Term Care Insurance
C. Entitled to Medicare benefits
D. Eligible to be claimed as a dependent on another person's tax return.
Which of the following Term policies guarantees the insured the right to continue term coverage after expiration of the policy period?
A. Renewable
B. Convertible
C. Decreasing
D. Increasing
A life insurance policyholder dies of heart failure shortly after the tenth policy anniversary. The insured failed to disclose the condition and resulting medical consultations on the application. In this situation, the insurer will most likely:
A. refuse to make any payment
B. refund all premiums without interest and not pay the face amount
C. refund all premiums with interest and pay the face amount
D. pay the face amount
Basic cancer plans pay for all of the following EXCEPT:
A. Immunotherapy
B. chemotherapy
C. physical therapy
D. radiotherapy
A policy becomes a Modified Endowment Contract (MEC) when:
A. too much premium is paid in the initial policy's year
B. premium payments are skipped and the policy lapses
C. more than one life is covered by the policy
D. a Settlement option is selected to provide lifetime income
The fair credit reporting act requires that:
A. interest charged on premium loans be limited to a specific amount
B. applicants be advised that a consumer report may be requested
C. insurance companies treat insureds fairly and not discriminate
D. insurance companies pay interest on claims that are paid late
A student airplane pilot may buy life insurance at a regular price if the policy that is purchased contains:
A. an Aviation Exclusion
B. a Guaranteed Insurability rider
C. a Hazardous Occupation Exclusion
D. an Accidental Death Benefit rider
Social Security provides all of the following types of benefits Except:
A. Retirement
B. Dismemberment
C. Survivorship
D. Disability
Which of the following statements is CORRECT about the Medicaid program?
A. It provides medical assistance for participants who are blind
B. Participants must be at least 55 years of age.
C. It is supplemented by Medicare for persons 62 years of age or older
D. The program is administered at the federal level.
A type of health contract that allows the remaining partners in a business to buy out the interests of a disabled business partner is known as:
A. Key Employee Health
B. Business Continuation
C. Disability Buy-Sell
D. Business Interruption
An insured who wants to guarantee that an Accident and Health policy will remain in force even in the event of being disabled should purchase which of the following riders?
A. Accidental Death and Dismemberment (AD&D)
B. Double Indemnity
C. Waiver of Premium
D. Guaranteed Insurability
Which of the following types of policies provides permanent protection at the lowest annual premium?
A. Term
B. Endowment
C. Whole Life
D. Limited-Pay Life
Which of the following policies provides a specified income benefit when the insured person becomes unable to work because of illness or accident?
A. Emergency Income
B. Supplemental Income
C. Temporary Income
D. Disability Income
If an initial premium is not collected when a life insurance application is written, the insurance becomes effective:
A. after medical examination is completed
B. after it is approved by the insurer's underwriters
C. On delivery of the policy to the insured and payment of the initial premium to the producer
D. On delivery of the policy to the insured and receipt of the initial premiums in the home office.
Which of the following benefits are usually EXCLUDED or limited under a Long Term Care policy?
A. Hospice care
B. Home health care
C. Skilled nursing
D. Addictive behavior rehabilitation
Under an Accidental Death and Dismemberment policy, in which of the following circumstances will an autopsy NOT be performed?
A. When the beneficiary refuses to give consent
B. When it is prohibited by law
C. When the cause of death was an illness
D. When the cause of death was an accident
P is both the policy owner and the insured under a $100,000 Whole Life policy. The beneficiary is P's mother. When P marries, ownership of the policy is transferred to P's spouse. If P dies without making any other changes, the policy proceeds will be payable to P's:
A. mother only
B. spouse only
C. mother and spouse
D. Estate
In a life insurance policy, the promise by the insurer to pay certain benefits is the:
A. Insuring clause
B. Entire Contract provision
C. Settlement Option provision
D. Nonforfeiture Option provision
In a life policy, insurable interest MUST exist at which of the following times?
A. Throughout the life of the policy
B. During the first two years the policy is in effect.
C. At the time the application is signed
D. At the time of the insured's death
A prospect, with limited financial resources, wants to purchase a policy with the highest amount of protection for a tenant period. The producer should advise the prospect to purchase which of the following types of policies?
A. Limited-Pay Life
B. Term life
C. Variable Life
D. Whole Life
Under the Guaranteed Renewable provision in a policy issued to a group of persons having a common occupation, an insurance company may NOT terminate coverage on a group member if the member:
A. ceases to fall within the eligible classification
B. ceases to be actively employed
C. Reaches the age specified
D. becomes disabled
A prospect submits an Accidental and Health application with the premium and receives a conditional receipt. The insurance company issues a policy and mails it to be insured, but the insured never receives it. Which of the following statements is CORRECT about this situation?
A. The policy is not in force because delivery was not completed
B. The policy will not be in force five business days after the prospect notifies the company that the prospect has not received the policy.
C. The policy will be in force as soon as the company issues a replacement policy.
D. The policy is in force.
A retirement plan that may be established by an employee, regardless of any other retirement plan is called a(n):
A. Individual Retirement Account (IRA)
B. Keough (Unincorporated) pension plan
C. 401(k) plan
D. Corporate pension plan
Which of the following statement is CORRECT about the Death Benefit of a life insurance policy?
A. It cannot be assigned
B. It can only be assigned by the beneficiary
C. It can be assigned by the policyowner
D. It can be assigned by the policyowner
W applies for life insurance on W's five-year-old child and submits the initial annual premium. The producer issues W.
A. Nonmedical
B. Interim
C. Conditional
D. Premium
A life insurer that accepts an incomplete application and issues a policy is obligated to:
A. honor the contract
B. Complete the application within the Contestable Period
C. Return only the premiums paid, with interest, on the insured's death.
D. Charge a lower premium for the initial period of coverage
After the expiration of COBRA or State Continuation laws, which of the following statements is correct about an who quits the job and wants to convert the group accident and health coverage to an individual policy?
A. The employee has a maximum of six months to convert.
B. The employee need NOT provide evidence of insurability
C. The employee's premium for the individual coverage will be the same as that for the group coverage
D. The employee's dependents can NOT be covered under the individual coverage
Which of the following statements is correct about the Coordination of Benefits provision?
A. It prohibits an insurer from selling a health policy to an applicant who already has similar coverage
B. It prevents an insured covered by two health plans from making a profit on a covered loss.
C. It allows an insured to change insurers without losing benefits.
D. It permits an insurer to defer paying a claim for a work-related injury until Workers' Compensation Benefits have expired.
Because life insurance policies are offered on a "take it or leave it" basis, they are referred to as which of the following types of contracts?
A. Aleatory Contracts
B. Executory Contracts
C. Unilateral Contracts
D. Contracts of Adhesion
Under an individual Major Medical policy, a married policyowner has the right to take which of the following actions?
A. Demand binding arbitration if there is disagreement over a claim
B. Sue the insurance company for not paying a claim within 30 days after submission of Proof of Loss
C. Reinstate the policy within 3 years after it lapses
D. Add a newborn child to the policy without providing proof of insurability.
In general, what amount of personal life insurance premiums is deductible for federal income tax purpose?
A. 100%
B. 50%
C. 33 1/3%
D. None
The purpose of the Insuring clause in an Accident and Health policy is to:
A. specify the schedule and method of premium payments
B. specify the conditions under which benefits are payable
C. indicate the responsibilities of the insured after a covered loss
D. satisfy the requirements of the uniform policy provision code
An insured who owns a Disability Income policy forgot to pay the premium due on July 1. If the insured files a disability claim on July 31st, the insurance company will MOST likely:
A. Deny the claimB
B. Pay the claim but deduct the unpaid premium
C. Reinstate the policy and then pay the claim
D. Cancel the policy and return all premiums paid
Which of the following annuities pays benefits based on units rather than specific dollar amounts?
A. A flexible annuity
B. A Variable annuity
C. A Deferred annuity
D. A single Premium annuity
Which of the following information is included in the consideration clause in an Accident and Health policy?
A. Description of the coverage provided
B. Explanation of the Contestable periods
C. Duration of the Grace Period
D. Schedule and amount of premium payments
Which of the following statements is CORRECT about Business Overhead Expense insurance?
A. It can be obtained only by corporations
B. It covers eligible expenses for staff, rent, and utilities.
C. It reimburses the policyowner for loss of income
D. It covers eligible expenses for staff only
Which of the following annuities provides the highest monthly payout?
A. Straight Life Annuity
B. Joint and Survior
C. Joint and 2/3 Surviorship Annuity
D. Installment Refund Annuity
A producer who discovers that answers to a series of questions on a life insurance application were omitted should take which of the following actions?
A. Send the application to the insurance company is
B. Complete the application to the best of the producer's knowledge based on the producer's interview of the applicant
C. Send the application to the applicant with instructions to answer and mail it to the insurance company directly.
D. Schedule another appointment with the applicant to complete the unanswered questions.
Changing a beneficiary is a right reserved for the:
A. Contract owner
B. Insured who is other than the owner
C. Owner's spouse
D. Estate
Group vision insurance plans typically provide insurance benefits that cover the cost of:
A. laser surgery, eyes exams, lenses
B. cataract removal, frames, lenses
C. Eye exams, lenses frames, and contact lenses
D. eye exams, lenses, retinal corrective surgery
Which of the following statements about policy delivery is CORRECT?
A. The producer should deliver the policy before the Free Look period expires
B. The producer should deliver the policy in person and advise the insured to call the insurance company's home office if there are any questions
C. The producer should mail the policy to the insured to reduce the chance that the insured will reconsider and return the policy.
D. The producer should explain the policy to the insured to increase the chance that the insured will understand the policy's benefits to keep it.
Which of the following statements about a Dismemberment provision in a health insurance policy is CORRECT
A. It provides benefits for the loss of a specific part of the body.
B. It lists the ways in which a policy can be canceled
C. It is included in all health policies
D. It provides coverage only for work-related accidents
A customer surrenders a recently issued whole life policy and requests proceeds be made payable to an unrelated third party. This would be a red flag potential violation of the:
A. Fair credit Reporting Act
B. Anti-money laundering rules
C. Modified endowment contract rules
D. Point of sale disclosure requirements
In a life insurance policy, the Consideration clause states that the policyowner's consideration consists of completing the application and:
A. Paying the initial premium
B. Signing the medical authorization form
C. Accepting the policy
D. Surrendering existing insurance policies
An example of a limited-pay life policy is:
A. Whole life
B. Life paid-up at Age 65
C. Renewable Term to Age 70
D. Endowment maturing at age 65
A doctor who is receiving Disability Income benefits is not able to return to work full-time but continues practicing on a part-time basis. Which of the following policy features would allow the doctor to continue receiving benefits?
A. A Residual Benefit clause
B. A Contingent Benefit Clause
C. A Concurrent Benefit clause
D. A Guaranteed Insurability rider
Which of the following is a contract in which the performance of one or both parties is contingent upon the occurrence of a particular event?
A. Unilateral
B. Aleatory
C. Adhesion
D. Conditions
The Coinsurance clause in an individual Medical Expense policy refers to the:
A. Insured's right to have another person, such as spouse or child, insured on the same policy
B. Insurance company's right to join with another company to carry excessive coverage on a particular individual
C. insurance company's right to share claim experience with another company
D. insurance company's rights to require the insured to share a certain percentage of the cost of each claim
Which of the following statements is generally CORRECT about a major medical policy?
A. It provides benefits for in-hospital expenses only, subject to policy limits.
B. It contains more limitations than a Basic Hospital, Medical, or Surgical Policy
C. It contains a 30-day Elimination period for losses due to sickness
D. It provides benefits for reasonable and necessary medical expenses, subject to policy limits.
What minimum percentage of eligible employees must participate for a company to offer a Contributory group life insurance plan?
A. 25
B. 50
C. 75
D. 100
A Convertible Term Policy offers which of the following advantages?
A. Th insured may convert on the basis of the insured's original age only
B. The insured does not have to provide evidence of insurability when requesting a conversion.
C. Its face amount can be increased at the insured's request
D. Its premium costs are lower than those for Nonconvertible Term.
Which of the following statements is CORRECT about the federal income tax law in relation to $100,000 worth of group Term Life insurance coverage through an employer-sponsored plan?
A. Employees must not pay tax on premiums paid by an employer
B. Employees must pay tax on the premiums for the first $50,000 of group term life coverage
C. An employer can deduct a premium for tax purposes only if the employer is also the beneficiary of the insurance
D. Death benefits are income tax free to named beneficiaries.
Which of the following annuities ensures level income for the lifetime of two annuitants?
A. A double life annuity
B. An Immediate Annuity
C. A joint and Survivor Life annuity
D. A Joint and 2/3 Life Annuity
A $100,000 group Accidental Death and Dismemberment policy will pay double indemnity if the insured dies in a commercial airplane crash. If the insured is killed when flying to a business meeting on a commercial flight, the policy will pay a MAXIMUM of:
A. $0
B. $100,000
C. $200,000
D.$300,000
A life insurance policy owner has paid $1,200 in premiums in six months for a $250,000 policy. The policyowner dies suddenly and the insurer pays the beneficiary $250,000. This exchange of unequal values reflects which of the following insurance contract features?
A. Aleatory
B. Personal
C. Unilateral
D. Unilateral
The signed document that starts the free look period is the:
A. Buyer's guide
B. Delivery receipt
C. Policy Summary
D. Conditional Receipt
An insurance company may charge a higher total premium to an insured who pays a policy quarterly rather than annually because the quarterly payment results in:
A. greater adverse selection
B. an increase in the company's loss experience
C. an increase in the number of dividend payments
D. a reduction in the company's interest earnings and an increase in administrative expenses.
Which of the following statements is CORRECT about conversion of group Term Life insurance on termination of employment?
A. Evidence of insurability
B. Premiums on a new policy must be paid within a maximum of ten days
C. If death occurs during the conversion period, the death benefit must be paid
D. A terminated employee may convert an amount of coverage up to five times the group coverage.
Which of the following provisions establishes a procedure for restoring a policy after it has lapsed because of nonpayment of premium?
A. Entire Contract
B. Grace Period
C. Reinstatement
D. Legal Actions
Which of the following kinds of policies typically contain a limited daily room and board benefit and provides coverage on an in-hospital basis only?
A. Basic Surgical
B. Basic Hospital
C. Major Medical
D. Supplemental Major Medical
The waiver of Premium provision in a life policy guarantees that the:
A. insurance company will waive premiums whenever the policy's cash value is sufficient to cover its cost
B. insurance company will pay premiums for the duration of a disability after a predetermined waiting period
C. insured will receive a predetermined amount of money for each week the insured is hospitalized
D. insured may increase the face of the policy without providing evidence of insurability.
Under a Disability policy, the Elimination period is:
A. usually longer for accidents than for sickness
B. Predetermined by the insurance company
C. Similar to a deductible but expressed in terms of time rather than dollars
D. the same as a probationary period
A payor benefit clause is generally added to life policy that insurers the life of a:
A. spouse
B. parent
C. child
D. business associate
The primary purpose of a limited-pay life policy is to allow an:
A. insurance company to reduce its risk exposure
B. insurance company to sell policies to selected groups of risks only
C. insured to pay premiums for a predetermined period of time
D. insured to purchase coverage that will pay death benefits under specified circumstances only
The misstatement of Age provision in an accident and health policy allows an insurance company to take which of the following actions if an insured has understated the insured's age on the policy application?
A. Increase the premium
B. Adjust the benefits
C. Lapse the coverage
D. Cancel the policy
A full-time employee who is suffering from chronic kidney failure and requires dialysis is eligible for medical coverage under which of the following plans?
A. Medicaid
B. Medicare
C. Worker's Compensation
D. Social Security Disability benefits
The policy provision that prevents an insurance company from altering its agreement with a policyowner by referring to documents or other items not contained in the policy is called the:
A. Incontestable provision
B. Benefits provision
C. Entire Contract provision
D. Legal Actions provision
An underwriter's evaluation of information on a life insurance application is also known as:
A. risk classification
B. warranty review
C. consideration
D. applicant investigation
To enroll in Medicare Part C, an individual must:
A. also enroll in Medicare Part D
B. have an annual income under $15,000
C. already be enrolled in Medicare Part A only
D. already be enrolled in both Medicare Parts A and B
Which of the following situations describes a representation?
A. An insurance company guarantees that policy benefits will be paid promptly on receipt of a proof of loss
B. An insurance company guarantees that premiums paid will be refunded within 30 days after the policy's effective date if an insured is dissatisfied with the policy
C. A propect's statement on an application that is held to be substantially true
D. A prospect's statement on an application that is held to be absolutely true
An Immediate Annuity will have:
A. An increasing premium
B. a decreasing premium
C. a single premium
D. a level premium
J and K are married and have several children. J is the primary beneficiary on K's Accidental Death and Dismemberment (AD&D) policy, and K's sibling, is the contingent beneficiary. J, K, and L are involved in a train accident, and K and L are killed instantly. The accidental Death benefits will be paid to:
L's estate
K's estate
J's and K's estate
J only
Which of the following statement is CORRECT about a Renewable Term policy?
A. The insured must provide evidence of insurability only on the first renewal
B. The insured may increase the face amount on subsequent renewals without providing proof of insurability
C. The renewal premium is calculated on the basis of the insured's attained age
D. The policy is renewable only until the insured retires.
For which of the following losses would an insurance company MOST likely pay benefits under an Accidental Death and Dismemberment policy?
A. loss of life due to a heart attack
B. Loss of eyesight due to an accidental injury
C. Loss of the spleen due to an accidental injury
D. Partial paralysis due to a stroke
Which of the following types of group Term Life insurance plans does a corporation offer, if the employees share the premium cost?
A. Nonparticipating
B. Participating
C. Noncontributory
D. Contributory
An immediate annuity can be recognized by which of the following features?
A. Payout begins one payment period after purchase
B. Payout begins several years later
C. Only an annual payout period will apply
D. The annuitant must be in good health
One of the primary reasons for using deductibles in health policies is to reduce:
A. adverse selection
B. the need for certain exclusions
C. Over-utilization of medical services
D. The number of covered conditions
Which of the following beneficiary designations may limit a policyowner's rights?
A. Primary
B. Contingent
C. Revocable
D. Irrevocable
Which of the following statements is CORRECT about medicare?
A. It is medical assistance program.
B. It is a hospital and medical expense insurance program.
C. It provides benefits to totally disabled persons only
D. Its Part A provides payments for physicians' bills.
R is an insured under a life policy in which R's spouse is the designated beneficiary. Both are involved in a car accident that results in R's death. R's spouse survives ten days and then dies. Under the common disaster provision in the policy, the benefits will be paid to the:
A. insured's next of kin
B. spouse's heirs
C. insured's estate
D. spouse's estate
A policy Summary:
A. tells the insured about the insurer issuing the policy
B. educates the client at the time of application about the types of insurance available
C. contains the conditional receipt
D. highlights the critical parts of the policy issued and describes the coverages, riders and exclusions.
Which of the following statements about a five-year-oldWhole life policy is CORRECT?
A. If a policyowner stops paying premiums, the policyownermay elect a Nonforfeiture option.
B. If the insurance company discovers a misrepresentation on the application, they may rescind the policy.
C. The contestable period cannot begin again even if the policy is reinstated.
D. If extra premiums were charged for special risks, cash and Nonforfeiture option values increased accordingly.
Y wants to purchase a policy that allows Y to increase or decrease the premium payment, the premium payment period, and the death benefit of the policy. Which of the following policies offers the flexibility that Y wants?
A. Limited Pay Life
B. Variable Universal Life
C. Variable Whole Life
D. Modified Whole Life
An insured health insurance policy contains a Change of Occupation provision. If the insured experiences a loss in a more hazardous occupation than when the policy was issued, the insurance company may:
A. adjust benefits to the amount the premium provides for the new occupation
B. increases the waiting period to adjust for the occupational difference
C. deny any claim on the basis of misrepresentation
D. increase the deductible to adjust for the occupational difference
Which of the following policies allows the policyowner to select where the cash values are invested?
A. Whole life
B. Variable Life
C. Limited-Pay Life
D. Adjustable Life
If the initial premium does not accompany an application for insurance, the producer MUST take which of the following actions when delivering the policy?
A. Collect the initial premium and complete the inspection report
B. Collect the initial premium and verify the applicant's continued good health
C. Collect the initial premium in compliance with the provisions of Federal Credit Reporting Act
D. Obtain the benficiary's approval of the policy.
The Time of Payment of Claims provision states that the intervals between Disability Income benefit payments may NOT exceed:
A. two weeks
B. one month
C. three months
D. six months
An Immediate Annuity will have:
A. An increasing premium
B. a decreasing premium
C. a single premium
D. a level premium
Most insurance companies use the usual, customary, and reasonable (UCR) charges to:
A. reimburse the employee for expenses charged by the medical facilities
B. reimburse physicians for excess expense
C. pay dollars direct to the employers for health insurance
D. limit the insurance company claims liability.
Two equal partners in a business worth $100,000 enter into a Buy and Sell agreement to assure continuation of the business in the event of the death of the other partner. Which of the following funding arrangements BEST meets their needs?
A. The partnership purchases a $100,000 policy on each partner
B. Both partners purchase $50,000 policies on themselves
C. Each partner purchases a $50,000 policy on the other.
D. Each partner purchases a $100,000 policy on the other hand
Which of the following statements is CORRECT about a Limited-Pay Whole Life Policy
A. The policyowner has the right to adjust the premium
B. Premium payments must be made for a specified number of years, after which the policy lapses.
C. The premium payment period is shorter than the Straight Life policy, and more of each premium payment is credited to the policy's cash value
D. The policy provides insurance protection for a shorter period of time than Straight Life policy.
A producer has taken an application for an individual Disability Income policy, collected a premium, and given the applicant a conditional receipt. Which of the following statements is CORRECT about this situation?
A. Since the producer collected a premium when taking the application, the insured is guaranteed coverage as of the date of the application.
B. As soon as the insurance company received the application and premium, it will issue a policy to the applicant with the date of receipt becoming the effective date of the policy.
C. The insurance company will issue a policy to the applicant only if the company has issued the applicant life policy on a standard basis within the previous 6 months
D. The insurance company will complete standard underwriting procedures before making a decision about whether to insure the applicant.
Which of the following items requires that an insurance application state that an investigative consumer report maybe obtained on a prospective insured?
A. Fair credit Reporting Act
B. Entire Contract Provision
C. Individual standard Provision Law
D. Medical Information Bureau (MIB) Authorization
A producer submits an application to an insurance company without the initial premium. If the company issues the policy, the producer should promptly deliver the policy and collect the initial premium for which of the following reasons?
A. The company is at risk until the producer determines whether there has been any significant change in the prospect's health
B. The company is providing coverage and has not yet received compensation
C. The prospect does not have coverage until the policy is delivered and the premium is paid
D. The producer may be held liable for claims that occur before the prospect receives the policy and pays the initial premium
