Completing the Application, Underwriting, and Delivering the Policy
Where an applicant submits a completed application together with the initial premium, who has made the offer?
Answer and explanation
Answer: D. An application submitted with the initial premium is ordinarily the offer, which the insurer accepts by issuing the policy as applied for. Published rates are an invitation rather than an offer, the agent solicits rather than offers, and formation does not wait on delivery where the offer has been accepted on its terms.Source: Pearson VUE — Georgia Insurance Examination Content Outlines #121102 — Outline page S2, Who makes the offer
More completing the application, underwriting, and delivering the policy questions
- An insurer issues a policy although one health question on the application was left completely blank. What is the usual legal consequence for the insurer?
- An investor offers to fund a policy on a Georgia resident's life if the resident agrees at application to transfer ownership afterward. What is the concern?
- An owner receives a replacement life policy approved under the Insurance Compact standards and decides during the required review period that it is unsuitable. What action preserves the free-look remedy?
- An underwriter wants to obtain an applicant's medical records from a treating physician. What is required first?
- Besides replacement, what may an application ask about the applicant's other coverage?
- During policy delivery, the owner notices a typo in the beneficiary's middle name. How should the producer assist?
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