Completing the Application, Underwriting, Delivering Policies, Contract Law
If an application is submitted WITHOUT premium, when does coverage officially take effect upon policy delivery?
Answer and explanation
Answer: B. Without initial premium, coverage begins only upon physical delivery, full payment of first premium, and execution of a statement of good health.Source: IIPRC Application Standards — § 3.K. Delivery Requirements
More completing the application, underwriting, delivering policies, contract law questions
- An agent observes unusual funding behavior while selling a covered life product. What is the agent's proper AML role?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
- 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?
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