XCEL CHAPTER 7 EXAM QUESTIONS WITH COMPLETE
SOLUTIONS VERIFIED GRADED A+
When does a life insurance policy typically become effective?
A. When the policy is issued
B. When initial premium is collected and policy is issued
C. When the application is completed and signed
D. When the completed application is signed and initial premium is collected
When initial premium is collected and policy is issued
What is the purpose of the Medical Information Bureau (MIB)?
A. To accept or decline insurance applicants
B. To set the premium rates for insurers
C. To help underwriters evaluate risk
D. To perform physical examinations on applicants
To help underwriters evaluate risk
How many months can a life insurance policy normally be backdated from the
date of application?
A. 3
B. 6
, C. 9
D. 12
6
Upon policy delivery, which of the following must a producer have an applicant
sign if no initial premium was collected with the life insurance application?
A. A waiver of premium
B. A replacement form
C. A good health statement
D. An exclusion
A replacement form
What is involved when a life insurance policy has been backdated?
A. Setting a policy's effective date prior to a preexisting condition
B. Redating a policy after it has been issued
C. Reinstating a lapsed policy
D. Making the policy effective on an earlier date than the present
Making the policy effective on an earlier date than the present
A change in an insurance application requires?
A. an initial made by the producer
B. an initial made by the applicant
C. approval by the insurer
D. submitting a new application
an initial made by the applicant
SOLUTIONS VERIFIED GRADED A+
When does a life insurance policy typically become effective?
A. When the policy is issued
B. When initial premium is collected and policy is issued
C. When the application is completed and signed
D. When the completed application is signed and initial premium is collected
When initial premium is collected and policy is issued
What is the purpose of the Medical Information Bureau (MIB)?
A. To accept or decline insurance applicants
B. To set the premium rates for insurers
C. To help underwriters evaluate risk
D. To perform physical examinations on applicants
To help underwriters evaluate risk
How many months can a life insurance policy normally be backdated from the
date of application?
A. 3
B. 6
, C. 9
D. 12
6
Upon policy delivery, which of the following must a producer have an applicant
sign if no initial premium was collected with the life insurance application?
A. A waiver of premium
B. A replacement form
C. A good health statement
D. An exclusion
A replacement form
What is involved when a life insurance policy has been backdated?
A. Setting a policy's effective date prior to a preexisting condition
B. Redating a policy after it has been issued
C. Reinstating a lapsed policy
D. Making the policy effective on an earlier date than the present
Making the policy effective on an earlier date than the present
A change in an insurance application requires?
A. an initial made by the producer
B. an initial made by the applicant
C. approval by the insurer
D. submitting a new application
an initial made by the applicant
