Life Insurance Underwriting and Policy Issue

An individual most likely will have an insurable interest in insuring a person's life if: 1. an economic interest exists for the continuance of the insured's life 2. a financial interest exists at the time of insured's death 3. there is any blood relationship 4. a business relationship exists

1. an economic interest exists for the continuance of the insured's life

The Medical Information Bureau (MIB) provides what kind of information to an insurance company?

Applicants medical history

Which is NOT a factor in the underwriting process of a life insurance application? 1. Credit report 2. National origin 3. Age of applicant 4.Sex of applicant

National Origin

which of these activities is considered hazardous to a life insurance underwriter?

Scuba diving

A change in an insurance application requires what?

an initial made by the applicant

When an agent submits an application that reveals personal information regarding the applicant, who supplies the privacy notice?

Agent

which of these is NOT considered the responsibility of an agent in the underwriting process?

Choosing the final approval Date

Life insurance underwriting would consider which of these factors as unimportant?

Marital status of the applicant.

A person who is a nonsmoker, of average weight and in excellent health would most likely be in which risk classification?

Preferred

The reason for backdating a policy is: 1. to avoid being considered a substandard risk due to recent cancer diagnosis 2. to obtain a premium rate based on earlier age 3. to decrease the face amount 4. to decrease the Contestable period

2. to obtain a premium rate based on earlier age

Information needed for the underwriting process can be obtained from which of these sources?

Attending Physicians Reports (APS)

What must be given to a life insurance applicant when the agent receives an application and the initial premium?

Conditional receipt

With few exceptions, a person cannot purchase life insurance on another person without their:

Consent

Sexual orientation, religious preference, and geographical location are not allowed to be used in the underwriting process. Why is this so?

Considered unfair discrimination

Mike applied for life insurance and was issued a conditional receipt. He is later found to be an acceptable risk and is issued a policy. What is considered to be the effective date of this insurance contract?

Date the conditional receipt was issued.

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?

Good health statment

The Medical Information Bureau consists of members from which group?

Insurance companies

When does the agent give a premium receipt for a life insurance application?

When the initial premium has been collected with the application

During the underwriting process, all of these may be utilized to help determine a life insurance applicant's insurability EXCEPT a(n)

eye exam

The initial premium for a life insurance policy is typically handled in what way?

it is typically obtained by the agent and sent to the insurer

A signed statement of good health would be collected by a life producer at the time of?

policy delivery