Completing the Application, Underwriting, and Delivering the Policy
Which question does consumer guidance say an owner should be able to answer after reading a delivered policy?
Answer and explanation
Answer: D. The NAIC Life Insurance Buyer's Guide lists the questions an owner should be able to answer after reading the policy, including whether personal information is correct, whether premiums or values vary from year to year, and what part of the premium or policy value is not guaranteed. Commission, the insurer's investment strategy, and a market-wide comparison are not among them.Source: NAIC — Life Insurance Buyer's Guide — Buyer's Guide page 7, Read your policy carefully
More completing the application, underwriting, and delivering the policy questions
- A suspicious transaction involving a covered insurance product is identified from facts supplied by an agent. Who bears the direct federal obligation to report the suspicious transaction?
- After signing an application but before policy delivery, the proposed insured begins taking a newly prescribed heart medication. What should the proposed insured do?
- An adult applies for a policy on his own life and names his sister as beneficiary. Whose signatures does the application ordinarily require?
- An agent observes unusual funding behavior while selling a covered life product. What is the agent's proper AML role?
- An applicant applies for preferred rates and the insurer issues a standard-rated policy instead. In contract terms, what has the insurer done?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
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