CHAPTER 6

Who established the MIB (which used to be called the Medical Information Bureau)?

: A group of insurance companies.

The Fair Credit Reporting Act:

Allows consumers to insert a corrective statement in a consumer report

To protect the applicant's privacy and confidentiality, some information is given to the underwriter and not to the Producer. Which of the following is the ONLY item that the Producer would have access to in the normal insurance transaction?

Application

Each of the following statements regarding the Fair Credit Reporting Act is true EXCEPT?

FCRA requires Insurers to share credit report information with the applicant.

Which of the following statements regarding MIB is CORRECT?

Medical information is supplied to MIB by the member insurance companies.

An applicant is rejected for life insurance due to a prior medical condition. The Producer may do each of the following EXCEPT:

Notify MIB that the applicant was rejected.

The Fair Credit Reporting Act prevents the Insurer from:

Obtaining a consumer investigative report without notifying the applicant

The purpose of the life insurance Replacement Regulations is to:

Protect the Insured against loss of benefits

THE FAIR CREDIT REPORTING ACT ENTITLES THE APPLICANT TO REVIEW INFORMATION BY

THE CONSUMER REPORTING AGENCY

Under the Fair Credit Reporting Act, the Producer must inform the client of the rights regarding consumer investigative reports at the time:

of application

If a physical exam reveals a serious medical condition (such as HIV), the information may be reported to the applicant's:

physician

To determine the applicant's financial standing, an underwriter would most likely use a/an?

Credit report.

The purpose of the Fair Credit Reporting Act is to:

Provide fair and accurate consumer credit reporting.

UNDER THE FAIR CREDIT REPORTING ACT, THE INSURED HAS NO RIGHT TO

REQUIRE THAT THE INSURER PROVIDE A COPY OF THE REPORT TO THE INSURED

Each of the following statements regarding the Fair Credit Reporting Act is correct EXCEPT

The applicant must give consent before an Insurer can access any consumer reports.

Under the Fair Credit Reporting Act, the Insured is entitled to:

Receive the name and address of the reporting agency from the Insurer.

Each of the following statements regarding MIB (Medical Information Bureau) is correct EXCEPT

An applicant's MIB report may show the amount of insurance for which the applicant previously applied.

Who can alter an insurance policy?

An executive officer of the company.

The Federal Fair Credit Reporting Act requires the Insurer to warn the Insured in advance that:

An inspection report will be obtained.