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16 Cards in this Set
- Front
- Back
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Who is considered a field underwriter? |
An agent |
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When must ensurable interest exist in life insurance? |
At the application or issue date |
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If no receipt is issued at the time of application, a statement of good health is usually require at the time of... |
Policy delivery |
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The medical information bureau is... |
A source of medical information to alert insurers to adverse medical history. |
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In an insurance contract, consideraron refers to... |
Exchange of something of value by both parties |
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Over several years a policy owner paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid $50,000 in benefits. What characteristic of an insurance contract does this describe? |
Aleatory |
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Valid insurable interests |
1. Policyowner's own life. 2. The life of a family member. 3. The life of a business partner, key employee, or someone who had financial obligation to the policy owner. |
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Which of the following would be the main source of underwriting information used by the company in the risk selection process? |
The application |
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Which of the following would be the main source of underwriting information used by the company in the risk selection process? |
The application |
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An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin? |
On the date of the application |
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What is the main responsibility of a company's underwriting unit? |
Risk selection and classification |
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Which of the following best describes the purpose of the USA patriot act with regards to the insurance industry? |
To prevent terrorism activities through monitoring of financial transactions. |
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If the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do? |
Inform the insurance company |
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Representations are statements made by the applicant that are... |
Considered true to the best of the applicant's knowledge. |
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If an agent fails to obtain an applicant's signature on the insurance application, the agent must... |
Return the application to the applicant for signature. |
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Which of the following includes information regarding a person's credit, character, reputation, and habits? |
The Consumer's report |
