Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?
Complete the application and review the information with the customer prior to obtaining the customer’s signature
, then send the application off to the insurance company.
Why is an applicant signature required on a health insurance application?
Why is an applicant’s signature required on a health insurance application?
K applies for a health insurance policy on herself and submits the initial premium with the application
. She is given a receipt by the producer stating that coverage begins immediately if the application is approved.
Which of the following actions will an insurance company most likely not take if an applicant who has diabetes supplies for a disability income policy?
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy? The correct answer is “
Issue the policy with an altered Time of Payment of Claims provision”
.
What action should a producer take if the initial premium is NOT submitted with the application? The correct answer is “
Forward the application to the insurer without the initial premium
“. In this situation, the producer should submit the application to the insurance company without the premium.
What factors are not used in underwriting an individual disability policy?
What factors are not used in underwriting an individual disability policy?
Religious preference and political affiliation
are not factors used in underwriting individual health policies.
Which best describes how an indemnity plan works?
Indemnity plans
allow you to direct your own health care and visit almost any doctor or hospital you like
. The insurance company then pays a set portion of your total charges. Indemnity plans are also referred to as “fee-for-service” plans.
Which type of renewability best describes a disability?
Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate? “
Guaranteed Renewable”
.
Which type of disability is less than total impairment?
Permanent disability that is less than total impairment and equal to permanent impairment is the definition of
permanent partial disability
. The elimination period is the time immediately following the start of a disability when benefits are not payable.
When would a misrepresentation on the insurance?
Applicants commit fraud when they
make willful misrepresentation with intent to defraud or deceive
. If the insurance company proves that the insured intended to deceive by providing wrong information on the application, it can invoke a policy rescission beyond a two-year incontestable period.
What is a requirement for any change in an insurance application?
The applicant’s medical history may be analyzed and reported. Which of the following is a requirement for ANY change in an insurance application?
Change must be initialed by the agent
.
Change must be initialed by the applicant
.
Change must be approved by the insurer
.
What are the factors taken into consideration in insurance company?
Such risk may be categorised differently by each insurer, for the same profile. In the underwriting process, various factors are taken into consideration like
your age, gender, occupation (how risky is your job), lifestyle, policy tenure, any hereditary diseases in the family, etc
.
What is the initial source of underwriting for an insurance policy?
Your application: The basic source of underwriting information is
your completed application for term insurance
. The questions on the application are designed to give the insurer much of the information needed to make a decision.
Which statement is true regarding a minor beneficiary?
Which statement is true regarding a minor beneficiary? In most cases, insurers require that
a guardian be appointed in the Beneficiary clause of the policy
or that a guardian be designated in the will.
What is the most difficult aspect of underwriting disability income insurance?
Disability insurance underwriting is strict because the insurance company has only one chance
to evaluate the potential risk
, and the risk factors for disability are hard to evaluate. In addition, disability claims can cost insurance companies a great deal of money.
What is the elimination period of an individual disability policy?
Your individual disability policy’s elimination period — also known as the waiting period — is
the span of time between when the disability occurs and when benefits start paying out
. For example, a policy with a 60-day waiting period would not pay benefits for the first 60 days after the insured becomes disabled.
What are five 5 examples of life changes that will cause you to re evaluate your disability insurance?
Five factors affect benefit levels and coverage:
elimination period, total disability, benefit period, monthly indemnity and other income sources
.
