Test Your Insurance Knowledge pt. 1

Question 1

What is NOT contained in an Inspection Report?

Accepted Answer

skills

Question 2

Who is considered to be the field underwriter?

Accepted Answer

The agent

Question 3

What does MIB stand for?

Accepted Answer

Medical Information Bureau

Question 4

A(n) ___________ presents non guaranteed elements of a life policy over a period of years.

Accepted Answer

illustration

Question 5

The four elements of a legal contract are...

Accepted Answer

agreement, consideration, competent parties, legal purpose

Question 6

The premium receipt that states the policy can be effective as early as the application date...

Accepted Answer

conditional receipt

Question 7

What are the 3 parts of a life insurance application?

Accepted Answer

General information, medical information, agent's report

Question 8

The risk selection and classification process is called...

Accepted Answer

underwriting

Question 9

Insurable interest must exist between the policy owner and the insured.

Accepted Answer

True

Question 10

An insurance policy is a _________ since it is prepared by the insured.

Accepted Answer

contract of adhesion

Question 11

What is the element of a legal contract that involves the exchange of something of value?

Accepted Answer

consideration

Question 12

Who should NOT sign an application?

Accepted Answer

The patient's physician

Question 13

The basic source of information used by the company underwriters is called what?

Accepted Answer

the application

Question 14

Who would complete the paramedical report if the underwriter requests one?

Accepted Answer

RN or paramedic

Question 15

If there is a change to be made on the application, the applicant must initial the change.

Accepted Answer

TRUE

Question 16

When must insurable interest exist?

Accepted Answer

At the time of application

Question 17

The document that provides info about life insurance policies to choose the amount & type is...

Accepted Answer

buyer's guide

Questions 17