Multiple Choice
The amount you can charge to a secured credit card is limited by:
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7. Receivables and Investments
Types of Receivables
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Upon policy delivery, the producer may be required to obtain any of the following except:
A
The initial premium payment if not previously collected
B
A signed delivery receipt from the policyholder
C
A written statement of continued good health from the insured
D
A promissory note for future premium payments
Verified step by step guidance1
Understand the context of the problem: This question relates to the responsibilities of a producer (insurance agent) upon delivering an insurance policy to the policyholder.
Identify the key elements of the question: The producer may be required to obtain certain items upon policy delivery, but the question asks which item is NOT required.
Review the options provided: Analyze each option to determine whether it is a standard requirement during policy delivery. For example, collecting the initial premium payment, obtaining a signed delivery receipt, and securing a written statement of continued good health are common practices.
Evaluate the exception: A promissory note for future premium payments is not a standard requirement because insurance companies typically require premiums to be paid upfront or on a set schedule, not through promissory notes.
Conclude the reasoning: The correct answer is the item that does not align with standard practices, which in this case is 'A promissory note for future premium payments.'
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