Completing the Application, Underwriting, Delivering Policies, Contract Law
A producer tells an applicant, 'I can change the receipt so coverage starts today even though its stated conditions are unmet.' Which response is accurate?
Answer and explanation
Answer: A. The application agreement states that a sales representative lacks authority to accept risk or make, void, waive, or change conditions or provisions of the application, policy, or receipt. Coverage depends on the applicable written terms.Source: Interstate Insurance Product Regulation Commission — Individual Life Insurance Application Standards — § 3.K. Agreements (1)(c)
More completing the application, underwriting, delivering policies, contract law questions
- 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?
- An applicant submits an application with the initial premium, making an offer to buy coverage. The insurer issues the policy exactly as applied for. Which contract formation element is most directly demonstrated by the insurer's issuance of the policy?
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