Chapter 6 Exam - Life Insurance Underwriting & Policy Issue
Consumer Reports
A report which is based on creditworthiness and personal characteristics that influences an insurance applicant's eligibility for life and health insurance is called a(n):
An applicant has revealed conditions that require more information. Which of the following is needed next?
Attending physician's statement.
Binding receipts always provide insurance which starts from the date of receipt.
How does a conditional receipt differ from a binding receipt?
Medical Information Bureau (MIB)
Most U.S. life insurance companies belong to the:
Life and health insurance companies.
The Medical Information Bureau consists of:
Avoid selecting a disproportionate number of bad risks
The objective of underwriting is to:
Medical ailments discovered during the underwriting process.
What are members of the Medical Information Bureau (MIB) required to report?
Sign a consent form.
What must an applicant do in order to authorize the release of an attending physician report?
Underwriting
When an applicant applies for insurance, the process by which the insurer determines whether to issue a policy is called:
Copy of the signed authorization.
When an insurance company requests an attending physicians report, the request must be accompanied by a:
Dividend risk
Which of the following is NOT a risk classification that an underwriter would use?
The beneficiary must sign the application before the insurer will issue the policy.
Which of the following is NOT an important reason for a life insurance application?
Substandard
Which of the following risk classifications charges the highest premium?
Preferred
Which of the following risk classifications charges the lowest premium?
Ethnicity
Which of the following types of information is NOT required for a life insurance application?