CA Life and Health Insurance: Life Insurance Basics
What describes the specific information about a policy?
A policy summary Describes the features and elements of the specific policy for which a person is applying.
Underwriters review applications for insurance and the information contained therein so as to NOT
Issue a policy that would insure a pending loss. Underwriting of reviewing applications for those coverage and the information contained on the application. Those applicants that are accepted must then be classified by the underwriter, according to the type of degree of risks, and the appropriate rates assigned for the exposure. The underwriter always attempts to avoid adverse selection by not issuing a policy that would insure a pending loss.
Kayla's husband died in a plane crash. She needs a new source of funding that will help put her child through daycare. Which of the following would be the best source?
Life Insurance proceeds: There are any legitimate need-based expenses that can be paid by life insurance proceeds, from groceries to retirement income. Daycare is considered to be among these expenses.
Which employees of an insurance company are responsible for the final risk selection?
Underwriters: Through producers and agents are considered to be "field underwriters," the final responsibility for risk selection lies with the company's underwriters.
