Completing the Application, Underwriting, Delivering Policies, Contract Law
A life application authorizes the insurer to obtain information from a third-party provider but does not describe the information or provider type. What is missing?
Answer and explanation
Answer: D. The application standards permit an authorization to obtain personal information from a third-party provider, such as MIB, only when the authorization describes the type of information to be obtained and the type of information provider.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3.K. Agreements (1)(e)
More completing the application, underwriting, delivering policies, contract law questions
- 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?
- An applicant submits an application and initial premium for a preferred life insurance policy, but the insurer issues a standard-rated policy with a higher premium. In contract law, how is the issuance of this altered policy treated?
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