Completing the Application, Underwriting, Delivering Policies, Contract Law
A policy is issued as applied for and delivered while the insured is alive, but the owner refuses to pay the first premium. Under the standard application agreement, what follows?
Answer and explanation
Answer: B. Issuance and delivery alone do not satisfy the standard agreement when the first premium is unpaid. Full payment of the first premium while the proposed insured is alive is also a stated condition.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3.K. Agreements (1)(d)
More completing the application, underwriting, delivering policies, contract law questions
- Two same-age applicants seek identical coverage. One has a serious health condition and regularly skydives. Why may that applicant receive a higher rate?
- Under 28 TAC Chapter 22 (Texas Insurance Privacy Rules), when must an insurer provide an initial privacy notice to a customer?
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
- Under FCRA, if an insurer takes an adverse underwriting action (such as declining or rating an applicant) based in whole or in part on a credit report, what notice must the insurer provide to the consumer?
- Under federal USA PATRIOT Act regulations, what threshold cash payment triggers Currency Transaction Reporting (CTR) requirements for financial institutions?
- Under HIPAA, what permits a covered health provider to disclose protected health information to a life insurer for coverage purposes?
590 Texas 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.