Underwriting Quiz

which of the following factors is NOT prohibited from use in order to classify a risk? a. race b. place of residence c. religion d. marital staus

d. marital status

A risk that bears the same health, habits, and occupational characteristic as the persons on whose the mortality table was based upon is knon as a a. substandard risk b. declined risk c. preferred risk d. standard risk

d. standard risk

which of the following imposes a requirement that the insurer must keep all medical information confidential and protect the applicants privacy? a. consumer reports b. medical information bureau c. consumer investigative reports d. HIPAA

D. HIPAA

A Part of the application that requires the agent to provide information regarding the proposed insured, such as habits, character, and relationship with the insured is known as a : a. producers report b. conditional receipt c. confidentiality report d. binding receipt

a. producers report

The fair credit reporting act requires which of the following to be issued in all application for life or health insurance? a. a free credit check b. a notice to the applicant c. all of these must be issued to applicants d. a financial disclosure statement

b. a notice to the applicant

When delivering the policy, the producer must obtain a signed document that the insured's health is the same as when he/she applied for the insurance policy. This document is called a. a delivery reciept b. a statment of good health c. an inspection report d. a policy review

b. a statment of good health

A general report in regard to the applicant's finances, health, character, work, hobbies, and other habits that is usually completed by interview friends and associats is known as a. a mIB report b. an investigative consumer report c. an attending physicians statement d. a consumer report

b. an investigative consumer report

which of the following is a non-profit insurance trade association that maintains underwriting information on applicants from hundreds of insurers? a. consumer reports b. medical information bureau c. investigative consumer reports d. HIPPA

b. medical information bureau

The process of evalualted a risk to determine if the risk is one that the insurance company wishes to insure is also known as the a. insurance process b. underwriting process c. decision making process d. application process

b. underwriting process

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 company's standard underwriting rules? a. standard receipt b. acceptance receipt c. conditional receipt d. binder receipt

c. conditional receipt

which of the following is used to determine a consumers eligibility for peronal credit, insurance or employment? a. consumer investigative reports b. HIPAA c. consumer reports d. medical information bureau

c. consumer reports

Which of the following is NOT included in the genreal form of the insurance application? a. beneficiary b. type of policy and face amount being applied for. c. height & weight d. occupations and business address

c. height & weight

During the underwriting process, medical exams and testing are paid for by the a. underwriter b. agent/producer c. insurer d. applicant

c. insurer

a risk that represents a chance of experiencing a loss that is below average and therefore favorable to the company is a substandard risk b. declined risk c. preferred risk d. standard risk

c. preferred risk

The section of the applicatio nthat includes information regarding the proposed insureds medical history is known as a. attending physicians statement b. the entire application c. second part - health information d. first part - general information

c. second part-health information

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 individuals is NOT required to sign the application form? a. the producer/agent b. the insured c. the beneficiary d. the applicant (if not the insured)

c. the beneficiary

All of the following statements about completing the insurance application are correct except: a. the application form must be signed by both the applicant, proposed insured (if not the applicant) and producer/agent b. collecting the first premium with the applicaiton is the quickest way to get coverage in force c. the producers report must be signed by both the applicant, proposed insured (if no the applicant) and producer/agent d. any change to the applicaiton must be intialed by the applicant

c. the producers report must be signed by both the applicant, proposed insured (if no the applicant) and producer/agent

most states allow backdating to be done on an insurance application for a. up to 9 months b. up to 4 months c. up to 6 months d. up to 2 months

c. up to 6 months