Health And Life Insurance Exam | 149 Verified Questions And Answers With Complete Solutions | Latest Update 2024

Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? {Ans: Risk classification}An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective? {Ans: When the conditions of the receipt are met}L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision, the insurer will: {Ans: adjust the death benefit to a reduced amount}P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: {Ans: P only}A policy that becomes a Modified Endowment Contract (MEC): {Ans: will lose many of its tax advantages}Which of these actions should a producer take when submitting an insurance application to an insurer? {Ans: Inform insurer of