Completing the Application, Underwriting, Delivering Policies, Contract Law
A delivered policy has a higher premium because underwriting classified the insured for a risky occupation. Which explanation is appropriate?
Answer and explanation
Answer: A. Underwriting uses health, occupation, habits, and other risk factors to determine eligibility and price. The producer should explain the rating and its effect on premium or coverage without mischaracterizing other policy rights.Source: Texas Department of Insurance — Life Insurance Guide — How do I get life insurance?; How much does life insurance cost?
More completing the application, underwriting, delivering policies, contract law questions
- At delivery, a client is confused about a rider and an exclusion. What should the producer do?
- Because insurance contracts are contracts of adhesion prepared solely by the insurer, how do courts resolve genuine ambiguities in policy wording?
- During policy delivery, the owner notices a typo in the beneficiary's middle name. How should the producer assist?
- How are statements made by an applicant on a life insurance application defined under Texas law?
- If a life insurance application contains a clause that clearly conflicts with established state public policy, how is this clause treated under general contract and regulatory standards?
- If a provision in a life insurance policy remains genuinely ambiguous after a court applies ordinary rules of interpretation, and it supports two reasonable meanings, how is the ambiguity typically resolved?
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