Completing the Application, Underwriting, and Delivering the Policies
A client reads a delivered policy and cannot tell which values are guaranteed. What does consumer guidance say should happen?
Answer and explanation
Answer: B. The NAIC Life Insurance Buyer's Guide directs the owner to read the policy and to be able to answer what part of the premium or policy value is not guaranteed, adding that the insurance agent, financial advisor, or an insurance company representative can help with anything that is not clear. Returning the policy, waiting, or asking the regulator to interpret it are not the guidance given.Source: NAIC — Life Insurance Buyer's Guide — Buyer's Guide page 7, Read your policy carefully
More completing the application, underwriting, and delivering the policies questions
- An applicant asks whether every answer on a life application is an absolute guarantee of literal accuracy. Which response is correct?
- An applicant attempts to purchase a single-premium $500,000 life policy using multiple cashier's checks under $10,000 from different banks. What action is the insurer required to take under AML rules?
- An applicant completes an application and pays the initial premium with it. In contract terms, what has the applicant done?
- An applicant gives an insurer a Social Security number and income information to obtain personal life coverage. How does the GLBA Privacy Rule generally classify that information?
- An applicant is offered free coverage and a cash payment by investors who will own the policy after two years. What should the producer conclude?
- An applicant plans to surrender an existing whole life policy after the new policy is issued. How should the replacement question be answered?
589 Florida questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.