Am Pro TX GL Life and Helth Ch 3
Which of the following premium modes will result in the least total dollar outlay over the life of the policy? Select one: a.Quarterly b.Annual c.Monthly d.Weekly
b.Annua
Underwriting involves each of the following activities EXCEPT: Select one: a.Placing an applicant in the appropriate rate group. b.Carefully investing premium dollars to achieve returns. c.Reviewing applicant information. d.Predicting future losses.
b.Carefully investing premium dollars to achieve returns.
Premium mode refers to the: Select one: a.Amount of the premium payment. b.Frequency of premium payment. c.Method by which the Producer sends the payment to the Insurer. d.Amount of time before the policy will terminate due to nonpayment of premium.
b.Frequency of premium payment.
The formula used to determine a premium includes each of the following elements EXCEPT: Select one: a.Expense b.Liquidity c.Risk d.Interest
b.Liquidity
The process of selecting and classifying risks is called: Select one: a.Categorizing. b.Underwriting.
b.Underwriting
Which of the following helps underwriters predict the likelihood of death? Select one: a.A mortality table b.A morbidity table
a.A mortality table
The premium mode which results in the greatest cost savings over the life of the policy is: Select one: a.Annual Premium b.Weekly Premium c.Quarterly Premium d.Monthly Premium
a.Annual Premium
If an applicant is not offered a policy after the underwriting process, he or she is referred to as a/an: Select one: a.Declined risk. b.Preferred risk. c.Substandard risk. d.Uninsurable.
a.Declined risk
Molly changes her premium mode so that she makes her premium payments more frequently. Will this make her insurance more or less expensive each year? Select one: a.More expensive b.Less expensive
a.More expensive
If only 5% of a company's employees choose insurance coverage, this presents what type of issue? Select one: a.an adverse selection issue b.a premium mode issue
a.an adverse selection issue
Each of the following may be a reason for denying a policy EXCEPT: Select one: a.age b.health c.sex (gender) d.occupation
c.sex (gender)
The section of the application providing the Producer's evaluation of the applicant is known as the: Select one: a.Agent's Observational b.Character Report c.Credit Report d.Agent's Report
d.Agent's Report
Each of the following is a factor in calculating gross premium EXCEPT: Select one: a.Interest. b.Expenses. c.Risk. d.Dividends
d.Dividends
The primary source of insurability information is: Select one: a.The consumer investigative report. b.The consumer credit report. c.The federal government. d.The application.
d.The application.
