Field underwriting procedures

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained ? A. 3 days B. 5 days C. 10 days

3 days

Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave -it basis are classified as A. Contracts of adhesion B. Unilateral contracts C. Aleatory contracts

A. Contacts if adhesion

Which of the following best describes the MIB? A. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance. B. It is a government agency that collects medical information on the insured from the insurance companies. C. It is a member organization that protects insured against insolvent insurers.

A. It is a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

An insured pays a $100 premium every month for his insurance coverage, yet the insurer promises to pay $10,000 for a covered loss. What characteristic of an insurance contract does this describe?

Aleatory ( In an aleatory contract, unequal amounts are exchanged between payments and benefits.

To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested?

At the time of application

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's A.Prior insurance B. Ancestry C. Credit history

B. Ancestry

An insured is upset that her new health indurance policy was delivered to her by certified mail and not through her agent. Which of the following is true ? A. The policy will not be legal until it is delivered by an agent. B. There is nothing wrong with this form of policy delivery. C. The insured should complain to the insurer.

B. There is nothing wrong with this form of policy delivery

When would a misrepresentation on the insurance application be considered fraud? A. When it's incomplete B. Any misrepresentation is considered fraud C. If it is intentional and material

C. If it is intentional and material

Which of the following includes information regarding a person's credit, character, reputation, and habits? A. Agents report B. Consumers report C. Consumer history

Consumer report

Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?

Consumer report

Before an agent delivers a policy, the insurer makes a last-minute change to the policy. The agent informs the insured of this change and he accepts itIn response, the agent must A. Have the insured sign a statement of acknowledgement , only if the change affects the premium amount B. Notify the policy beneficiary of the change . C. Have the insured sign a statement acknowledging that he is aware of the change .

Have the insured sign a statement acknowledging that he is aware of the change .

Under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information A. Held or transmitted in any form B. Electronically C. Paper form

Held or transmitted in any form

Which of the following entities can legally bind coverage ? A. Insurer B. The insured C. federal insurance board

Insurer

Which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information? A. Consumer privacy act B. The fair credit reporting act C unfair trade practice law

The Fair credit reporting act

Whose responsibility is it to determine if all of the questions on an application have been answered?

The agent