Life Insurance Basics
What is required when an insurer issues a policy on terms different from those applied for?
Answer and explanation
Answer: B. Issuing on different terms is a counteroffer, so the applicant must accept it, ordinarily by signing an amendment to the application at delivery. A fresh application, departmental approval and a refund are not the mechanism.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, amendments
More life insurance basics questions
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Two partners agree that on the death of either, the survivor will buy the deceased's share. How does life insurance support that?
- 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?
- What determines the effective date of coverage where no premium accompanies the application?
- What distinguishes an investigative consumer report from an ordinary consumer report?
- What do the two principal parts of a life insurance application contain?
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