Life underwriting

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has

better than average mortality or morbidityy experiance

A change in an insurance application requires

an initial made by the applicant

Which of these is NOT considered to be a risk factor in life insurance underwriting?

# of children

In which of the following relationships would there NOT be an insurable interest?

Business owner to business customer

An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with?

Fair Credit Reporting Act

An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of

Fraud

Which of these is likely to occur when life of health insurance is being applied for?

Medical history from the insured may be reviewed & reported

All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT Agent's report Medical Information Bureau (MIB) Inspection reports National Association of Insurance Underwriters

National Association of Insurance Underwriters

Which of the following would be a valid reason why a policy premium would be higher than the standard premium?

The insured does not meet established underwriting requirements

A field underwriter's main task is?

To ensure an applicant's medical information is accurate and complete

What guarantees that the statements supplied by an insurance applicant are true?

Warranty

An underwriter's primary responsibility to an insurer is to protect against

adverse selection

Field underwriting performed by the producer involves

completing the application and collecting inital premium

Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?

substandard risk

Which of the following does a life insurance policy summary normally include?

the policys cash value

An attending physician's statement would be appropriate for which life insurance purpose?

at the request of the insurer to assist in the underwriting decision

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

preferred risk

An insurance applicant with a below-average likelihood of loss is typically considered to be a

preferred risk

An insurer has a right to screen applicants for HIV in which of the following ways?

Blood test