Part 1 Chapter Quiz

Which on the following is consider a field underwriter? A. An Agent B. An Insurer C. An Adjuster D. A company underwriter

A. An Agent

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 physicians statement

A. Application

Representations are statement made by the applications that are. A. Considered true to the best of the applicant's knowledge B. Guaranteed to be true C. Found to be False after further investigation D. Immaterial to the actual acceptability of the insurance contract

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

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 applicants answer to what the agent knows is true C. Erase the answer once the applicants submit the application D. Refuse the applicant

A. Inform the insurance company

If an agent fails to obtain an application signature on the insurance application, the agent must A. Return the application to the applicant for signature? B . Send the application to the insurer with a note explaining the the absence of signatures. C. Sign the application for the applicant D. Signs the application as an agent, stating that all the answer have been verified

A. Return the application to the applicant for signature?

In a insurance contract, consideration refers to A. legal capacity B. Exchange of something of value by both parties C. Abiding by the law of ethics D. An act by the party in exchange from promise by the other

B. Exchange of something of value by both parties

If no receipt is issued at the time of application, a statement of good health is usually required at the time of? A. Application B. Policy Delivery C. Policy Renewal D. The The Paramedics report

B. Policy Delivery

Which of the following includes information regarding's person credit, character reputations, habits? A. Agents report B. MIB Report C. Consumer Report D. Fair credit report

C. Consumer Report

Which of the following best describes the purpose of the USA PATROIT Act with regards to the insurance industry? A. To provide insurance to military service men and women and their dependents B. To protect the public from the internal and external terror threats C. To prevent terrorism activates though monitoring of financial transactions D. To protect insurance companies from the insurance fraud

C. To prevent terrorism activates though monitoring of financial transactions

An insured Submits the full premium along with a completed application, and the policy is issued 10 days later. When dose 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 the policy is issued

C. on the date of the application

The Medical information Bureau is? A. Government entity that reviews B. An Association of physicians C. A directory of paramedical services and provided D. A source of medical information to alert insurers to adverse medical history

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

Over several years, a policyowner paid 10,000 in premiums for his insurance policy. When he suffered a loss the insurance company paid out 50,000 in befits. What Characteristics an insurance contract dose this describe? A .Unilateral B. Adhesion C. Conditional D. Aleatory

D. Aleatory

When must insurable interest exist in life insurance? A. Death of the insured B. Policy delivery date C. Time of claim D. Application date

D. Application Date

All the following may have an insurable interest in the insured EXCEPT A. The spouse B. Insured's Children C. The employer D. Insured's best Friend

D. Insured's best Friend

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 polices D. Risk Selections and Classification

D. Risk Selections and Classification