Completing the Application, Underwriting, and Delivering the Policies
When must insurable interest exist for a life insurance policy to be valid?
Answer and explanation
Answer: D. Section 627.404(1) provides that the insurable interest need not exist after the inception date of coverage under the contract, so the interest is tested when the contract is made. That is why a policy remains valid after a business relationship or a marriage ends, and why a requirement at claim time or a continuous requirement would not match the statute.Source: Fla. Stat. § 627.404 — 627.404(1), Interest need not continue
More completing the application, underwriting, and delivering the policies questions
- If an MIB report indicates a medical impairment that was not disclosed on the application, what action must the underwriter take under MIB rules?
- In a life insurance contract, which elements most directly represent the consideration exchanged by the parties?
- No premium accompanies an application, and no temporary coverage applies. The insurer issues the policy, but the owner has not accepted delivery or paid the first premium. What is the status under the application agreement?
- The home office proposes changing an application from preferred to standard class and reducing the face amount. What is required before those changes are effective on the application?
- 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?
589 Florida questions like this one.
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