8) The application & 9) Substandard risk
what type of risk will result in the highest premium?
substandard risk
which of the following best describes the MIB?
It's a nonprofit organization that maintains underwriting information on applicants for life and health insurance.
which of the following would provide an underwriter with information concerning an applicants health history
MIB
The federal fair credit reporting act
Regulates consumer reports
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?
as of the applicaiton date
If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?
5 days
Is the basic source of information used by the company in the risk selection process?
Application
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customers associates, friends and neighbors provide the reports data
An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?
application
All of the following are duties and responsibilities of producers at the time of application except
change any incorrect statement on the application by personally initialing next to the corrected statemetn
what reports will provide the underwriter with the information about an insurance applicants credit?
consumer report
an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. Five days later the applicant had to sumbit a medical exim. what would be the policys effective date
date of medical exam
All of the following information about the applicant is identified in the general information section of a life insurance application except
education
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
erase the incorrect answer and record the correct answer
An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?
inspection
The Medical Information Bureau was created to protect
insurance companies from adverse selection by high risk persons
an insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?
present the insured with a disclosure authorization notice
An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,
the beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for
which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?
the fair credit reporting act
Why should the producer personally deliver the policy when the first premium has already been paid?
to help the insured understand all aspects of the contract
what process do insurance companies use to determine whether or not a particular applicant is insurable
underwriting
what is true regarding the consent of the proposed insured for insurance contracts in kentucky?
only individual policies must be consented by the insured