Life insurance policy illustration requirements apply to which one of the following? Traditional Whole life insurance Individual and group annuity contracts Credit life insurance Variable life insurance

Traditional Whole life insurance

If the insurer discovers unanswered questions on the application after the policy has been delivered, what action can the insurer take? Increase the policy's premium Cancel the policy Nothing, the insurer has waived its right to that information Require the applicant/insured to answer the questions and re-underwrite the policy

Nothing, the insurer has waived its right to that information

Which of the following best describes a Statement of Good Health? It verifies that the insured has not suffered a serious illness or injury requiring surgery or hospitalization since the application date It is the producer's authority to raise the rate if the insured does not appear to be in good health at the time of policy delivery It is a sworn oral statement made by the insured at time of delivery which allows for coverage to come into effect It is what comes along with the policy at the time of delivery confirming the underwriting class the insured falls into if the policy was issued standard or better

It verifies that the insured has not suffered a serious illness or injury requiring surgery or hospitalization since the application date

If a copy of the application, which led to a life insurance policy being issued, is attached to the policy: It is a way for the insurer and policyowner to evidence who the producer was at the time of application It is provided so that the policyowner will have a record of the transaction It is considered part of the entire contract It can be used by the insurance company later on if the insured wants to increase their coverage instead of using a new one

It is considered part of the entire contract

When an applicant does not smoke, exercises regularly, seldom drinks, and eats moderately and is considered to be a better-than-average risk, they would likely qualify for: Preferred status and pay a higher premium Substandard status and pay a higher premium Preferred status and pay a lower premium Standard status and pay a standard premium

Preferred status and pay a lower premium

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Cards in this deck(100)

Life insurance policy illustration requirements apply to which one of the following?

The name used to indicate the insured's age at time of policy renewal is the ________ age.

If the insurer discovers unanswered questions on the application after the policy has been delivered, what action can the insurer take?

Which of the following best describes a Statement of Good Health?

Of the following, which can a home office underwriter solely use to determine insurability of an applicant based on age, medical history, and amount of coverage?

If a copy of the application, which led to a life insurance policy being issued, is attached to the policy:

Any transaction in which a new life policy or annuity is to be purchased, and the producer knows, or should know, that existing contract(s) will be lapsed, forfeited, surrendered, terminated, reduced in value, amended with a reduction in benefit or term, have a reduced cash value, or is subjected to borrowing, is best known as a __________.

When an individual qualifies for a lower premium or rate than standard risks, the insured is considered a:

When an applicant does not smoke, exercises regularly, seldom drinks, and eats moderately and is considered to be a better-than-average risk, they would likely qualify for:

The _______ date is the date on which the insurance coverage ends.

In a replacement transaction, all of the following are insurer duties and responsibilities, except:

Why have many states prohibited STOLI transactions?

Confidential information shared by the producer to the insurer and does not become part of the policy is the __________.

Upon receipt of all of the necessary information, the home office underwriters can issue the coverage applied for in all of the following ways, except:

An applicant's signature on an application indicates what?

If an applicant is a minor, who signs the application?

If an insurer issues a policy with a higher rating or exclusions, for coverage to come into effect, what must the producer do?

When reviewing an application, the underwriter decides to reclassify the risk. What does that mean for the client?

Which of the following is used by an insurer to collect information from the applicant/insured for underwriting purposes?

Which of the following is true?

All of the following are true regarding an Attending Physician's Statement (APS), except:

Which one of the following is the basic formula for determining premiums for life insurance?

When an insured decides to change her mode of premium payment from annually to monthly, the total premium due would:

What is used when the insured's age, medical history, or amount of coverage does not require a medical exam for underwriting purposes?

Which of the following is a false statement regarding insurable interest?

When an insurer accounts for the interest and mortality factors, then adds additional charges to meet all costs of a contract, it derives __________.

Which of the following describes a Whole life insurance policy?

In California, a life insurance illustration is also referred to as a:

The Human Life Value approach in determining the amount of life insurance someone needs takes into consideration all of the following, except:

Which of the following policies has the best likelihood of keeping pace with inflation?

A generic brochure was developed by the ________ to assist prospective buyers of life insurance, which includes descriptions of all the basic types of life insurance and comparisons of their relative costs.

The results of the ________________ is the only document that might be copied and made part of the policy.

Whenever an answer to a question on an application needs to be corrected, how is that best handled?

The replacement rules apply to which one of the following?

Which of the following would be considered a good result from an underwriter's action when an individual Life Insurance Policy is issued as applied for?

The factors necessary for an insurer to calculate a net premium are:

Policy delivery in California will be accomplished by all of the following, except:

A group plan is designed to insure all of the following, except:

In a STOLI transaction, what are the insureds basically doing?

In a replacement transaction, why should the existing policy not be terminated until the replacing policy is issued and delivered?

A(n) ________ report is a general report of the applicant's finances, character, morals, work, hobbies, and other habits.

Premiums paid in advance are considered what type of premiums until coverage has been provided?

After giving the applicant a conditional receipt, a producer submits a completed application to the insurer along with the premium check. What is the insurer's responsibility if the applicant completes the required medical exam but dies before the insurer issues a policy as applied for?

The term 'mode' refers to the:

B was 42 when the life insurance policy was issued. 42 is referred to as the ______ age of the policy.

Which of the following types of policies is an example of flexible insurance?

Which of the following receipts states that coverage will begin immediately for a specific length of time, regardless of whether the applicant is ultimately approved for coverage by the insurer?

Which of the following will pay the highest premium for a life insurance policy with all other factors being equal?

Ultimately it is up to the _______ to determine if the proposed insured is an acceptable risk.

F, who is an amateur mountain climber, is applying for a life insurance policy. Knowing this information, what will the producer most likely do?

A person making application, for themselves or another, to be insured under an insurance policy is called the:

In order for an insurance company to determine if it will issue a policy, what document must always be submitted for review?

What is the minimum administrative penalty if an agent violates any replacement regulations for the first time?

The mortality rate is based on mortality tables which show life expectancy and the death rate per _______ people living in the U.S.

The needs analysis approach always assumes the death of the insured to be:

A young couple just starting out on a limited budget, but having a large need for life insurance coverage, most likely would be best suited for ________ life insurance:

The date on which insurance coverage is no longer in effect is referred to as the _________ date.

If a basic life insurance illustration is used by an insurance producer in the sale of life insurance and the policy is applied for as illustrated, a signed copy of that illustration must be submitted to the insurer and provided to the applicant:

If it is known or should be known by the agent that an existing policy is going to be lapsed, forfeited, surrendered, or terminated in favor of a new policy, the agent must submit a:

If a client chooses to pay premiums other than annually, what can they expect?

Geographic location or personal information such as occupation, marital status, relationship of insured to beneficiary, or known or suspected homosexuality or bisexuality cannot be used to require a(n):

Any attempt by the existing insurer or agent to deter a policyowner from the replacement of an existing life insurance or an annuity is called:

A producer must include their name and address on which of the following?

What information must appear on the basic illustration provided to a life insurance client?

How does life insurance reduce financial loss upon the insured's death?

The MIB obtains its information from which of the following?

When replacement is involved, the replacing insurer must provide in its policy or a separate written notice that the applicant has a right to an unconditional refund of all premiums paid within how many days from the date of policy delivery?

Once the gross amount of dollars required to fund an insured's needs has been determined using the needs analysis approach, what is the next step?

M is age 30 when he applies for life insurance. The underwriter classifies M the same as a person age 40 and their policy is issued with a premium for a person age 40. What substandard rating has been applied to M's policy?

Every insurer and life agent offering for sale individual life insurance policies, or individual annuity contracts that are issued for delivery to senior citizens in California with the use of non-preprinted illustrations of non-guaranteed values must disclose on those illustrations, or on an attached cover sheet, which one of the following statements?

Which underwriting source is primarily used when an application reveals conditions for which more medical information is required?

Which rating classification is typically used in the senior marketplace so that policies can be issued without a medical exam?

California law requires that the purchaser of life insurance be provided with a copy of a Buyer's Guide to Life Insurance produced by:

Which of the following best describes field underwriting?

Under the California Senior Market and Policy Illustrations rules, all preprinted illustrations containing non-guaranteed values must show the:

The needs analysis approach in determining the amount of coverage someone needs takes into consideration all of the following, except:

What type of a receipt provides immediate coverage during the underwriting period (rather than a specified number of days) until a policy is issued or the application is declined?

The person who submits an application for insurance is always referred to as the _______.

Under California life insurance replacement legislation, conservation is defined as:

In life insurance, the Buyer's Guide must be provided at the time of application or:

Which of the following types of policies is eligible for policy dividends?

When the initial premium is not paid with the application, what happens if the applicant is not in good health at the time of policy delivery?

J took out a life policy when they were 35. It had a conversion feature that J exercised at age 45. Age 45 is referred to as J's ____ age.

When an insured decides to change her mode of premium payment from monthly to annually, the total premium due would:

Which of the following personal uses of life insurance is specifically designed to provide benefits to the policyowner while the insured is still alive?

Loading includes all of the following, except:

Which of the following is not a factor in premium determination?

Normally, when the insurer determines that the insured is an acceptable risk, the insurer will send the policy to the ____________.

What type of receipt provides that coverage is effective as of the date of application or date of completed medical exam (if required), whichever is later, as long as the insurer would have issued the policy as standard or better?

An insurance plan owned by an employer, creditor, or association, providing coverage for the employees, debtors, or members, refers to which of the following?

If a trial life insurance application is submitted, when would the coverage take effect?

The insurance company must meet requirements under the _____ when gathering information about an applicant from a third party.

A STOLI transaction is best defined as which of the following?

If a life insurance policy contains an unconditional refund provision, California law requires that the purchaser be provided with a copy of the Buyer's Guide to Life Insurance no later than:

All of the following are true of a substandard risk, except:

What is the primary reason why states have outlawed Stranger/Investor Originated Life Insurance (STOLI) transactions?

In order for a life insurance policy to be valid, insurable interest must exist at time of _________.

Through the purchase of insurance, a person is essentially:

J buys a life insurance policy specifically intending for the death benefit to be used to cover estate taxes. What is the correct term for using life insurance in this way?

Life insurance applications generally ask for all of the following types of information, except:

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