LESSON 5: LIFE INSURANCE UNDERWRITING AND POLICY ISSUE

Section 5.5 Review

The system of coverage that is designed to allow the insured immediate coverage and yet allows the insured to defer premium payments is known as:

	a)	the Conditional Receipt.
	b)	the Binding Receipt.
	c)	the Insurability Conditional Receipt.
	d)	Preliminary Term for Interim Coverage.
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If an applicant were to die before a policy is issued, the company will pay the death benefit, but only if the policy would have been issued. This is called a(n):

	a)	Conditional Receipt.
	b)	Binding Receipt.
	c)	Approval Receipt
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If the applicant were to die before the policy is issued, the company will pay the death benefit whether or not the policy would have been issued, subject to any limitations. This is called a(n):

	a)	Conditional Receipt.
	b)	Binding Receipt.
	c)	Approval Receipt.
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In order to provide an applicant with a lower premium rate, the insured's age as stated in the policy can be backdated in order to save age. This time period is usually up to:

	a)	3 months.
	b)	6 months.
	c)	9 months.
	d)	one year.
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