Underwriting Quiz

What document describes an insured's medical history, including diagnoses and treatments?

Attending Physician's Statement (APS)

Which document is used to assess risk associated with an applicant's lifestyle and character?

Investigative Consumer Report (ICR)

An insurance company wants to obtain the insurance history of an applicant. Which source releases coded information to insurers regarding information included on previous insurance applications?

Medical Information Bureau (MIB)

An insurer wishes to compare the information given in an insurance application with previous insurance applications by the same applicant but for different companies. What organization can help the insurer accomplish this?

Medical Information Bureau (MIB)

Who is involved in completing the agent's report?

Only the agent.

Which of the below statements is FALSE regarding the process of completing and signing an application? - Only the insured is required to sign the application. - If the applicant and insured are two different people, both need to sign the application. - If a policy is issued, the application becomes a part of the contract. - The application itself is completed by an agent and medical examiner (if required).

Only the insured is required to sign the application.

Before a customer's agent delivers his policy, the insurer makes a last-minute change to the policy. The agent informs the customer of this change, and he accepts it. What must the agent do now?

The agent should ask the customer to sign a statement acknowledging that he is aware of the change.

Which of the following would qualify as a competent party in an insurance contract? - The applicant is intoxicated at the time of application. - The applicant is a 12-year-old student. - The applicant is under the influence of a mind-impairing medication at the time of application. - The applicant has a prior felony conviction.

The applicant has a prior felony conviction.

An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change?

applicant

When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?

consideration

Which of the following is NOT an essential element of an insurance contract? Counteroffer Consideration Agreement Legal purpose

counteroffer

What is a definition of a unilateral contract?

one-sided: only one party makes an enforceable promise.

Upon policy delivery, the producer may be required to obtain any of the following EXCEPT: delivery receipt. signed waiver of premium. statement of good health. payment of premium.

signed waiver of premium

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

the agent

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it?

unilateral