MLAHP Minnesota Life Accident and Health Producer Exam - Set 3 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: On a health insurance application, an applicant answers every question honestly according to what she recalls about her medical past, and she signs the form. The answers are statements believed to be true when given. How are such statements classified?

Warranties guaranteed to be true

Concealments of material fact

Binding admissions against the insurer

Representations believed true when made

Question 42: An applicant who is not the person being insured must show that she would suffer a real emotional or financial loss if that person died before the insurer will issue the contract. Which of the following underwriting requirements does this describe?

A warranty made by the applicant

Insurable interest in the proposed insured

Adverse selection by the insurer

An attending physician's statement

Question 43: A producer delivers a policy applied for without any premium payment, collects the first premium in the living room, and has the owner sign the form attesting that health has not changed. Which statement BEST describes the resulting coverage position?

Coverage began when the application was signed

Coverage began at the policy issue date

Coverage begins that day, health statement required

Coverage begins only after a medical exam

Question 44: One applicant hides an embarrassing course of therapy on his application with no thought of gaining anything. Another falsifies his medical history specifically to obtain a policy he could not otherwise buy. Which statement BEST distinguishes the second case?

Only the second involves a false statement

Both cases are treated identically by insurers

The second is a warranty breach

Intent to obtain value makes it fraud

Question 45: During the application interview the producer asks about the applicant's height, weight, tobacco use, medications currently taken, past diagnoses, family health history and any high-risk hobbies such as skydiving or scuba diving. Which section of the life insurance application records these answers?

Part One, general information

Part Three, the producer's report

Part Two, health information

The policy delivery receipt

Question 46: A federal privacy law requires financial institutions, including insurers, to give customers a notice describing what nonpublic personal financial information is collected and shared, and to offer a chance to opt out of sharing with unaffiliated firms. Which law is described?

The Gramm-Leach-Bliley Act

The Fair Credit Reporting Act

The Employee Retirement Income Security Act

The Health Insurance Portability and Accountability Act

Question 47: An applicant in excellent health with a clean medical history, no tobacco use and a low-risk occupation presents the insurer with a chance of loss below the company average. Which risk classification will the underwriter assign to him?

Standard

Substandard

Declined

Preferred

Question 48: An underwriter opening a new life file begins with the document the producer completed and submitted, which supplies personal data, health history and details of the coverage requested before any outside source is consulted. Which of the following is that document?

The attending physician's statement

The insurance application

The Medical Information Bureau report

The investigative consumer report

Question 49: A sixteen-year-old wants to be the owner and applicant on a life policy covering himself, and the insurer will not accept the paperwork on that basis. Which element of a legal contract explains why a parent or legal guardian must sign the application instead?

Consideration

Offer

Competent parties

Legal purpose

Question 50: A producer meets the policyowner in person, hands over the issued contract, reviews its terms, and obtains a signed receipt showing the date the contract changed hands. Which of the following terms describes this method of placing the policy into the owner's possession?

Constructive delivery

Actual delivery

Conditional delivery

Contingent delivery

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