performance tracker life/health underwriting
If consumer information reports are obtained under false pretenses, the maximum penalty is
$5,000 fine imprisonment for 1 year or both
A Notice to Applicant must be issued to the consumer no later than
3 days after the REPORT was requested
A consumer may make a written request for complete disclosure of the nature and scope of an investigative report regarding her credit history. The disclosure must be made within
5 days
which of the following statements is CORRECT
George's brother, father, and grandfather had diabetes during their lifetimes. family history will be considered a risk factor when Georgia applies for insurance
what about medical information bureau is CORRECT
Information obtained from the MIB by insurers may not be used as the sole reason to decline an applicant's request for insurance
what about medical information bureau (MIB) is NOT CORRECT
MIB organized and supported by private hospitals ** it is nonprofit
which of the following would NOT constitute unfair discrimination in insurance underwriting
Maria is charged a higher premium based on her poor health
which section of the applicant should contain a record of any injuries the applicant may have suffered
The medical section
what about FAIR CREDIT REPORTING ACT is TRUE
a notice to applicant is required
If a medical report is required on an applicant, it is completed by: a paramedic or examining physician
a paramedic or examining physician
following criteria may be used when determining the premium rate for an insurance applicant
age
which of the following situations is the best example of unfair discrimination
an insurer assigns a premium rating to an applicant because of studies that suggest members of the applicant's race have a shorter than avg life expectancy
an insurer will use all of the following to determine if a person should be issued a policy EXCEPT
applicant's work history
what is a basic source of information for life insurance underwriting and policy issue
application
with regard to life insurance applications, which of the following statements is CORRECT
application includes the names of the insured and the beneficiary
all of the following may be done to determine insurability in regard to AIDS except
asking questions regarding the applicant's sexual orientation
Underwriting techniques commonly used by insurers in issuing policies to applicants who do not measure up to a standard rating include the following EXCEPT:
averaging total risks pending
which of the following is NOT considered unfair discrimination
charging a higher individual life insurance premium for a 50 year old than for a 25 year o
all of the following are forms of unfair discrimination EXCEPT
charging one person a higher premium than someone else of the same age and sex because of a higher risk represented by that person
all of the following factors influence an applicant's mortality rate EXCEPT
credit report
if an application for insurance is sent to the insurer without the first premium, but the first premium is paid when the policy is delivered, the effective date of coverage is
date the policy was delivered
which of the following statements regarding the delivery of a life insurance policy is NOT CORRECT
during the delivery appointment, the agent must have the application signed by the policy owner
If a premium payment has not been given with the application, the policy becomes effective only when the producer delivers the policy and:
explains its provisions and obtains the initial premium and a signed statement of continued of good health
following acts of legislation requires fair and accurate reporting of a consumer's buying and bill-paying history
fair credit reporting act
which act helps ensure confidential, fair, and accurate reporting of consumer information
fair credit reporting act
major risks factors in life and health insurance underwriting include all of the following EXCEPT
financial status
penalties for violating the fair credit reporting act include
fines, actual damages suffered by the consumer, punitive damages, and reasonable attorney's fees ** think of fair : reasonable attorney
all of the following are found in the first part of the application EXCEPT
hobbies
an investigative consumer report is also called
inspection report
which statement pertaining to inspection reports and credit reports on life insurance applicants is NOT correct
inspection reports only require consumer notification when they are conducted
what is the most common approach for rating life insurance applicants who are determined to be substandard risks
issuing a policy in the amount applied for, with a higher than standard premium
which of the following statements regarding risk factors is NOT correct
jill is 15 years younger than her supervisor and therefore poses a higher risk to an insurance company
all of the following are penalties for violating the fair credit reporting act EXCEPT
loss of license indefinitely
Delivering policies in person gives the agent an opportunity to do all of the following EXCEPT:
make last minute changes to the policy
all of the following can directly affect the amount of premium an individual insured pays EXCEPT
martial status
major risk factors in health insurance underwriting include all of the following EXCEPT
martial status
an attending physician's statement (APS) requested by the underwriting department will normally contain all of the following applicant information EXCEPT
medical information bureau
which of the following statements about policy delivery is CORRECT
most insurers require agents to personally deliver the policy so that they can explain the policy's terms, exclusions, and riders
an agent must notify the applicant that all of the following sources will be used to asses the applicant EXCEPT
personal references
For situations where no initial premium was paid when the application was taken, when delivering that policy the agent is generally required to do all of the following EXCEPT:
present the insured with a conditional receipt
Mailk works as a dentist and mountain climbs, skies, and flies airplanes in his spare time. when he applies for a life insurance policy, the agent's and malik's signatures will be required on all of the following documents EXCEPT
report issued by the medical information bureau
which of the following statements regarding consumer rights is NOT correct
reporting agencies may not delete information in reports when proved incorrect
Purpose of Fair Credit Reporting Act
requires consumer report agencies to adopt reasonable procedures when exchanging credit information
If the first premium was not paid at the time of application, what must the producer also collect?
signed statement of good health
all of the following are sources of insurability information about life insurance applicants EXCEPT
social security reports
which of the following statements pertaining to sources of insurability information is CORRECT
special questionnaires are used to obtain additional information when an extra hazard or risk may be involved
an insured that meets the avg health and life expectancy anticipated by the insurer for a person of that age and gender would be classified as
standard risk
Choua applied for a $100,000 whole life policy but did not pay the initial premium at the time of application. When the agent later delivers the policy, the agent must collect the premium and obtain which of the following statements from Choua?
statement of good health
which of the following statements regarding policy delivery is NOT true
the agent may hold on to the policy for safekeeping without showing it to the policy owner
which of the following statements pertaining to the Fair credit reporting act is NOT correct
the fair care reporting act is a state law that helps to ensure accurate reporting of information about consumers ** it is federal ** think of F in fair as federal
which of the following is NOT found in part I of the application
the name and address of the insured's physical physician
which of the following is an accurate statement for a producer to make regarding underwriting
the primary source of information used in underwriting will be the application
Jordan completed an application for life insurance and paid the initial premium. When his agent delivers the policy, the premium is higher. This is because
the underwriters determined Jordan to be a substandard risk
which of the following statements pertaining to inspection reports on life insurance applicants is NOT correct
they provide information obtained principally from law enforcement officials
An applicant determined by underwriting to be declined would be
uninsurable at any price
during the underwriting process, an insurer may do all of the following EXCEPT
verify the applicant's military records, if any
with regard to substandard life insurance risks, which of the following statements is CORRECT
when the applicant represents a substandard risk, the policy may be modified to reduce the benefits provided
Jia is applying for individual medical insurance coverage. All of the following factors will adversely affect her ability to obtain coverage at a reasonable premium EXCEPT
working at a desk everyday