Life Insurance Exam Question (Texas) Questions and Answers 100% Pass

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Life Insurance Exam Question (Texas) Questions and Answers 100% Pass Which of the following is considered a field underwriter? ✔✔An agent When must insurable interest exist in life insurance? �... ��✔Application or issues date If no receipt is issued at the time application, a statement of good health is usually required at the time of ✔✔Policy Delivery The Medical Information Bureau is ✔✔A source of medical information to alert insurers to adverse medical history A substandard risk compared to a standard risk would pay ✔✔A higher premium Which of the following documents describes specific information about policy provisions and benefits? ✔✔Policy Summary All the following may have an insurable interest in the insured EXCEPT ✔✔Insured's best friend Which of the following would be the main source of underwriting information used by the company in the risk selection process? ✔✔Application "90% information comes from the application" 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 What is the main responsibility of a company's underwriting unit? ✔✔Risk selection and classification( preferred, standard, substandard) Which of the following best describes the purpose of the USA PATRIOT Act with regards to the insurance, what must the agent do? ✔✔Inform the insurance company 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 Representations are statements made by the applicant that are ✔✔Considered true to the best of the applicant's knowledge If an agent fails to obtain an applicant's signature on the insurance application, the agent must ✔✔Return the application to the applicant for a signature. Which of the following includes information regarding a person's credit, character, reputation, and habits? ✔✔Consumers report What is insurance? ✔✔is a contract in which one party (the insurance company) agrees to idemnify (make whole) the insured party against loss, damage or liability arising from an unknown event. Representation are statements made by the applicant for insurance that are ✔✔True to the best of the applicant's knowledge. Insurable interest must exist at the time of ✔✔application A warranty is an ✔✔absolutely true statement If an insurer issues a policy with unanswered questions on the application, the insurer has given up the right to use the missing information in underwriting. ✔✔True The agent's report includes the agent's personal observation concerning the proposed insured. ✔✔True The primary purpose of an investigative consumer report is to assess an applicant's ✔✔Lifestyle and habits In a life insurance policy, when must insurable interest exist? ✔✔A valid insurable interest may exist between the policyowners and the insured when they policy is insuring any of the following 1. policyowner's own life 2. the life of a family member (a spouse or a close blood relative) 3. The life of a business partner, key employees, or someone who has a financial obligation to the policy owner (such as debtor to a creditor) Insurance is the transfer of risk ✔✔True [Show More]

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