Underwriting

Within how many days of requesting an investigative consumer must an insurer notify the consumer in writing that the report will be obtained? A. 3 days B. 5 days C. 10 days D. 14 days

A. 3 days

Which of the following types of risk will result in the highest premium? A. Substandard Risk B. Standard Risk C. Preferred Risk D. All risks pay equal premiums

A. Substandard Risk

The Federal Fair Credit Reporting Act A. Regulates telemarketing B. Prevents money laundering C. Regulates consumer reports D. Protects customer privacy

C. Regulates consumer reports

In the underwriting process, it was determined that the applicant for life insurance is in poor health and has some dangerous habits. Which of the following is true concerning the policy premium? A. It will likely be the average premium issued to standard risks B. The applicant's habits and health do not affect the premiums C. It will likely be lower because the applicant is a preferred risk D. It will likely be higher because the applicant is a substandard risk

D. It will likely be higher because the applicant is a substandard risk

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report A. Must be informed of the source of the report B. Are entitled to obtain a copy of the report from the party who ordered it C. Must be advised that a copy of the report is available to anyone who requests it D. May sure the reporting agency in order to get inaccurate data corrected

A. Must be informed of the source of the report

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

B. Consumer report

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? A. Disclosure rule B. Fair Credit Reporting Act C. Consumer Privacy Act D. Conditional Receipt

B. Fair Credit Reporting Act

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles? A. Standard risk is also known as high exposure risk B. Standard risk is representative of the majority of people C. Standard risk pays a higher premium than a substandard risk D. Standard risk requires extra rating

B. Standard risk is representative of the majority of people

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? A. Consumer Privacy Act B. The Fair credit Reporting Agency C. Unfair trade practices Law D. The Guaranty Association

B. The Fair credit Reporting Agency

If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to A. Lower its insurability standards B. Refuse to issue the policy C. Charge a higher premium D. Require a yearly medical examination

C. Charge a higher premium

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

D. 5 days