Copyright

Insurance Applications & Underwriting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. Which of the following are NOT included in a consumer report?

Question 2 2. Which of the following is NOT a right of an individual under the Fair Credit Reporting Act?

Question 3 3. Which of the following is a federal law that requires companies to protect an individual's health information and medical records?

Question 4 4. Which of the risk classifications is most common?

Question 5 5. Which of the following does NOT represent a risk classification of the underwriting process?

Page 2

Question 6 6. Which of the following sources of information would an underwriter NOT use to determine an applicant's risk?

Question 7 7. If Joe applies for a life insurance policy that has a monthly payment of $30, how much is his initial premium payment and when is it due?

Question 8 8. What kind of receipt offers a guaranteed death benefit in the event the applicant dies prior to the application being fully processed and issued?

Question 9 9. What is typically the upper limit for a death benefit paid under a binding receipt for a death that occurs before the application is fully processed?

Question 10 10. Which of the following would NOT occur during policy delivery?

Page 3

Question 11 11. In which step of the policy delivery process would an agent explain the inclusion of an accidental death benefit?

Question 12 12. What is the purpose of a policy delivery receipt?

Question 13 13. The triggering event that led to the passing of the USA Patriot Act and Title III of the act was _____:

Question 14 14. A government agency run by the Department of the Treasury whose role is to prosecute criminals involved in illegal financial activity and to prevent money laundering is called _____:

Question 15 15. Basic features of an anti-money laundering program for financial institutions as required by Title III of the USA Patriot Act include _____:

Page 4

Question 16 16. Which step of the insurance application process involves researching various insurance companies to select the one that is the best fit for them?

Question 17 17. What is an insurance contract?

Question 18 18. Which of the following is a factor in helping underwriting to determine whether or not to give someone a policy?

Question 19 19. With an IOLI, which of the following is a typical benefit amount for the life insurance policy?

Question 20 20. The Viatical Settlement Act made what illegal in Illinois in 2010?

Page 5

Question 21 21. From where does the insurable interest come for STOLI and IOLI transactions?

Question 22 22. Which of the following is TRUE of a life insurance policy where there is no insurable interest?

Question 23 23. Which of the following is TRUE of a creditor's insurable interest in someone who owes him money?

Question 24 24. Which of the following people has an insurable interest in Jane?

Question 25 25. Which of the following is NOT a reason why an insurance company would gather information about an applicant from the MIB and consumer reports?

Page 6

Question 26 26. Which of these risk classifications would have the lowest policy premium?

Question 27 27. Bob applies for a life insurance policy with a $1,000,000 coverage. If he dies after submitting his application and initial premium payment but before the policy is issued, what happens if he received an insurability conditional receipt?

Question 28 28. How long is the free look period after the policy is delivered?

Question 29 29. The primary purpose of the Bank Secrecy Act of 1970 is to _____:

Question 30 30. What is the purpose of warranties and representations?

Insurance Applications & Underwriting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Life & Health Insurance Exam Prep & Practice  /  Business Courses
Support