Field Underwriting Procedures Quiz

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's. A. Habits. B. Prior insurance. C. Ancestry. D. Credit history.

Ancestry

In a replacement situation, all of the following must be considered EXCEPT? A. Assets. B. Benefits. C. Limitations. D. Exclusions.

Assets

Representations are written or oral statements made by the applicant that are. A. Guaranteed to be true. B. Found to be false after further investigation. C. Immaterial to the actual acceptability of the insurance contract. D. Considered true to the best of the applicant's knowledge.

Considered true to the best of the applicant's knowledge.

Which of the following includes information regarding a person's credit, character, reputation, and habits? A. Agent's Report. B. Consumer Report. C. Consumer History. D. Insurability Report.

Consumer Report

Which of the following entities can legally bind coverage? A. Insurer. B. The insured. C. Federal Insurance Board. D. Agent.

Insurer

Who must pay for the cost of a medical examination required in the process of underwriting? A. Applicant. B. Underwriters. C. Department of Insurance. D. Insurer.

Insurer

When both parties to a contract must perform certain duties and follow rules of conduct to make the contract enforceable, the contract is. A. Personal. B. Unilateral. C. Conditional. D. Aleatory.

Conditional

Which of the following would provide an underwriter with information concerning an applicant's health history? A. A medical examination. B. The agent's report. C. The inspection report. D. The Medical Information Bureau.

The Medical Information Bureau

In terms of parties to a contract, which of the following does NOT describe a competent party? A. The person must not be under the influence of drugs or alcohol. B. The person must be of legal age. C. The person must be mentally competent to understand the contract. D. The person must have at least completed secondary education.

The person must have at least completed secondary education.

An insurance contract must contain all of the following to be considered legally binding EXCEPT. A. Competent parties. B. Beneficiary's consent. C. Offer and acceptance. D. Consideration.

Beneficiary's consent

If a consumer requests additional information concerning an Investigative Consumer Report, how long does the insurer or reporting agency have to comply? A. 5 days. B. 7 days. C. 10 days. D. 3 days.

5 days

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A. The customer has no knowledge of this action. B. The customer's associates, friends, and neighbors provide the report's data. C. They provide additional information from an outside source about a particular risk. D. They provide information about a customer's character and reputation.

The customer's associates, friends, and neighbors provide the report's data.

Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT. A. Legal purpose. B. Offer and acceptance. C. Conditions. D. Consideration.

Conditions

Which of the following is NOT an essential element of an insurance contract? A. Legal purpose. B. Counteroffer. C. Consideration. D. Agreement.

Counteroffer

When would a misrepresentation on the insurance application be considered fraud? A. Any misrepresentation is considered fraud. B. If it is intentional and material C. Never; statements by the applicant are only representations. D. When the application is incomplete.

If it is intentional and material