Life Ch. 6 Underwriting & Policy Issue
What must be given to a life insurance applicant when the agent receives an application and the initial premium? Agent's report Good health statement Conditional receipt Commission disclosure
A conditional receipt is given to an applicant upon receipt of the initial premium.
Which of these avocations is considered hazardous to a life insurance underwriter? Snow skiing Scuba diving Water skiing Snorkeling
Scuba diving is considered a hazardous avocation when underwriting a life insurance policy.
The Medical Information Bureau (MIB) provides what kind of information to an insurance company? applicant's medical history applicant's credit history applicant's character report applicant's claim history
he Medical Information Bureau (MIB) provides extensive medical history to insurance companies regarding applicants to life insurance.
Life insurance underwriting would consider which of these factors as unimportant? Gender of the applicant Age of the applicant Weight of the applicant Marital status of the applicant
Marital status is not important in life insurance underwriting.
The Medical Information Bureau consists of members from which group? Hospitals Underwriters Doctors Insurance companies
Insurance companies make up the membership of the Medical Information Bureau.
Which of these is NOT required when an insurance company requests a consumer report on an applicant? Disclosure to the applicant that report will be requested Consent of the applicant Remain in compliance with Fair Credit Reporting Act Consent of the agent
The consent of the agent is not needed when requesting a consumer report on an applicant.
Information needed for the underwriting process can be obtained from which of these sources? National Association of Insurance Commissioners (NAIC) Health Information Bureau (HIB) Department of Insurance Attending Physicians Reports (APR)
Attending Physicians Reports are a source of underwriting information.
The initial premium for a life insurance policy is typically handled in what way? It is typically obtained by the producer and sent to the insurer It is typically forwarded to the insurer by the applicant The producer pays it from any commissions received The applicant mails it to the insurer after the policy has been approved
The initial premium is usually collected by the producer and sent to the insurer.
A signed good health statement would be collected by a life producer at the time of physical examination policy issue application policy delivery
A life insurance producer may be required to obtain a signature on a statement of good health at the time of policy delivery.
Which of these documents is signed by an applicant at policy delivery that certifies no change in health has occurred since the original application date? MIB disclosure Binding receipt Good health statement Agent's report
At policy delivery, to ensure that the insured has NOT experienced adverse medical conditions since the time of application for life insurance, the insured may be required to sign a statement of good health.
Sexual orientation, religious preference, and geographical location are not allowed to be used in the underwriting process. Why is this so? Too burdensome to prove Considered unfair discrimination Subject to change Prohibited by the MIB
The correct answer is "Considered unfair discrimination" Geography, religion, or political affiliation are prohibited life insurance underwriting factors because they are unfairly discriminatory.
When a producer submits an application that reveals personal information regarding the applicant, who supplies the privacy notice? Producer Underwriter Insurer Fiduciary
The producer is responsible for providing the insurance applicant with privacy
The reason for backdating a policy is to obtain a premium rate based on an earlier age to avoid being considered a substandard risk due to a recent cancer diagnosis to decrease the face amount to decrease the Contestable period
The purpose of backdating a life insurance policy is to use premiums based on an earlier age.
