Chapter 3: Completing The Application, Underwriting and Delivering The Policy Quiz

A. An agent

1. Which of the following is considered a field underwriter? A. An agent B. An insurer C. An adjuster D. A company underwriter

B. A higher premium

4. A substandard risk compared to a standard risk would pay: A. A lower premium B. A higher premium C. The same premium D. No premiums

A. Return the application to the applicant for signature

10. If an agent fails to obtain an applicant's signature on the insurance application, the agent must: A. Return the application to the applicant for signature B. Sent the application to the insurer with a note explaining the absence of signature C. Sign the application for the applicant D. Sign the application as an agent, stating that all the answers have been verified

B. Policy delivery

2. In no receipt is issued at the time of the application, a statement of good health is usually required at the time of: A. Application B. Policy delivery C. Policy renewal D. The paramedic's report

D. A source of medical information to alert insurers to adverse medical history

3. The MIB - Medical Information Bureau is: A. A government entity that reviews medical information B. An association of physicians who write insurance rules C. A directory of paramedical services and providers D. A source of medical information to alert insurers to adverse medical history

D. Policy summary

5. Which of the following documents describes specific information about policy provisions and benefits? A. Buyer's guide B. Policy illustrations C. Agent's report D. Policy summary

A. Application

6. Which of the following would be the main source of underwriting information used by the company in the risk selection process? A. Application B. Warranty C. MIB report D. Attending physician's statement

C. On the date of the application

7. An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin? A. When the policy is received B. After the free-look period C. On the date of the application D. On the date of the policy is issued

D. Risk selection and classification

8. What is the main responsibility of a company's underwriting unit? A. Controlling business written by new agents B. Marketing and solicitation of insurance C. Issuing policies D. Risk selection and classification

A. Inform the insurance company

9. If the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do? A. Inform the insurance company B. Change the applicant's answer to what the agent know is true C. Erase the answer once the applicant submits the application D. Refuse the applicant