What action should a producer take if the initial premium is not?What action should a producer take if the initial premium is NOT submitted with the application? The correct answer is "Forward the application to the insurer without the initial premium". In this situation, the producer should submit the application to the insurance company without the premium.
What is the effective date of a life insurance policy?In a life insurance policy, the effective date is the day your life insurance coverage begins. The issue date is when your policy is approved and you can accept or reject it. If you have guaranteed issue or simplified issue life insurance, you may have a two-year waiting period before coverage kicks in.
What is the maximum period of time for which the premium collected during policy reinstatement can be applied quizlet?The reinstatement time period is typically 3 years from lapse, but can be as long as 5 years. In order to reinstate, the insured must provide evidence of insurability and the owner must pay all back premiums from the date of lapse plus interest.
When must insurable interest be present in order?When buying life insurance, insurable interest must exist at the time the life insurance policy is purchased. If the policyholder and insured person are different, both the policyholder and named beneficiary must have an insurable interest and prove financial loss and hardship if the insured were to pass away.
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