Unit 2 Quick quizzes

Which of the following is NOT included in the general form of the insurance application? A. Type of policy and face amount being applied for. B. Height and weight C. Occupation and business address D. Beneficiary

B. Height and weight

A part of the application that requires the agent to provide info regarding the proposed insured, such as habits, character, and relationship with the insured is know as a A. binding receipt B. conditional receipt C. producers report D. Confidentiality report

C. Producers report

Which of the following individuals is NOT required to sign the application form? A. the insured B. the producer/ agent C. The applicant (if not the insured) D. the beneficiary

D. The beneficiary

While delivering the policy, the producer must obtain a signed document that the insureds health is the same as when he or she applied for the insurance policy. This document is called A. an inspection report B. a delivery receipt C. a policy review D. a statement of good health.

D. This gives the insurer a good basis to contest a claim if it turns out that the insureds health declined before the coverage actually went into effect.

Which of the following is a non- profit insurance trade association that maintains underwriting information on applicants from hundreds of insurers? A. HIPPA B. Consumer reports C. Medical Information Bureau D. Investigative consumer reports

A. HIPPA

The Fair Credit Reporting Act requires which of the following to be issued to all applications for life or health insurance? A. notice to the applicant B. A financial disclosure statement C. a free credit check D. All of these must be issued.

A. Notice to the applicant

The process of evaluating a risk to determine if the risk is one that the insurance company wishes to insure is also knowns as the: A. Underwriting process B. application process C. decision making process D. insurance process.

A. Underwriting process

Which of the following is used to determine a consumers eligibility for personal credit, insurance, or employment. A. consumer B. medical information bureau C. HIPPA D. Consumer investigative reports

A. a credit report is an example of a consumer report. This can tell an underwriter if an applicant is likely to be reliable about making premium payments.

Under which of the following receipts is coverage effective as of the date of the application as long as the applicant is found to be insurable under the companies standard underwriting rules? A. conditional receipts B. binding receipts C. Standard receipts D. Acceptance receipts

A. some conditional receipts make the coverage effective on the date of application, or the date of the medical examination, whichever is later. A binding receipt is often used with homeowners insurance, not life insurance.

A risk that bears the same health, habits, and occupational characteristic as the persons on whose the morality table was based upon is know as A. Standard risk B. preferred risk C. Substandard risk D. Declined risk

A. standard risks represent average exposures and fall into the normal range.

The section of the application that includes information regarding the proposed insureds physical condition, Medical history, and alcohol and drug use is known as- A. First part- general info B. second part- health info C. the entire application D. Attending physicians statement

B. Height, weight, and tobacco use, drug use, medication, high risk hobbies, family health, are some uses on the second part of the insurance app. A binding receipt is often used with homeowners insurance, not life.

A risk that represents a chance of experiencing a loss that is below average and therefore favorable to the company is a : A. standard risk B. preferred risk C. substandard risk D. declined risk

B. These risks may be insured at preferred or discounted rates.

A general report in regard to the applicants finances, health, character, work, hobbies, and other habits that is usually completed by interviewing friends and associates is known as: A. consumer report B. an investigative consumer report C. an attending physician statement D. A medical info bureau report.

B. an investigative consumer report is also called an inspection report.

Most stats allow backdating to be done on an insurance application for: A. up to 2 months B. up to 4 months C. up to 6 months D. up to 9 months

C. Backdating is done so that the premium can be based on an earlier age for the insured. If the application is backdated the policy becomes effective as of that date and the insured must pay back premiums from that date.

Which of the following imposes a requirement that the insurer must keep all medical info confidential and protect the applicants privacy? A. consumer reports B. Medical information bureau C. HIPPA D. consumer investigative reports.

C. If any health info is going to be shared, applicants must be given notice of the insureres info- sharing practices, their right to maintain privacy, and an opportunity to refuse to have their info released.

Which of the following is an above average risk of loss and unfavorable to an insurance company? A. standard B. Preferred C. Substandard D. Declined

C. Substandard

Which of the following factors is NOT prohibited from use in order to classify a risk? A. Race B. Religion C. Marital status D. Place of residence

C. marital status