quiz 1

the medical information bureau is

a source of medical information to alert insurers to adverse medical history

over several years a policy owner paid $10,000 in premiums for his insurance policy. when he suffered a loss, the insurance company paid out $50,000 in benefits. what characteristic of an insurance contract does this describe?

aleatory

which of the following is considered a field underwriter

an agent

which of the following would be the main source of underwriting information used by the company in the risk selection process?

application

when must insurable interest exist in life insurance

application date

in an insurance contract, consideration refers to

exchange of something of value by both parties

all the following may have an insurable interest in the insured except

insured's best friend

what is the main responsibility of a company's underwriting unit?

issuing policies

an insured submits the full premium along with a completed application, and the policy is issued 10 days later. when does the coverage begin?

on the date of the application

if no receipt is issued at the time of application, a statement of good health is usually required at the time of

policy delivery

which of the following best describes the purpose of the USA PATRIOT Act with regards to the insurance industry?

to prevent terrorism activities through monitoring of financial transactions