Unit 2

An investigative consumer report

A general report in regard to the applicant's finances, health, character, work, hobbies, and other habits that is usually completed by interviewing friends and associates is known as

Producer's report

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

Standard risk

A risk that bears the same health, habits, and occupational characteristics as the persons on whose the mortality table was based upon is known as a

Preferred risk

A risk that represents a chance of experiencing a loss that is below average and therefore favorable to the company is a

the producer's report must be signed by both the applicant, proposed insured (if not the applicant) and producer/agent

All of the following statements about completing the insurance application are correct except

Insurer

During the underwriting process, medical exams and testing are paid for by the

Up to 6 months

Most states allow backdating to be done on an insurance application for

A notice to the applicant

The Fair Credit Reporting Act requires which of the following to be issued to all applications for life or health insurance?

Underwriting process

The process of evaluating a risk to determine if the risk is one that the insurance company wishes to insure is also known as the

Second part-health information

The section of the application that includes information regarding the proposed insured's physical condition, medical history and alcohol and drug use is known as

Conditional receipt

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?

Marital status

Which of the following factors is not prohibited from use in order to classify a risk?

HIPAA

Which of the following imposes a requirement that the insurer must keep all medical information confidential and protect the applicant's privacy

The beneficiary

Which of the following individuals is not required to sign the application form?

Medical information bureau

Which of the following is a non-profit insurance trade association that maintains underwriting information on applicants from hundreds of insurers?

Substandard

Which of the following is an above average risk of loss and unfavorable to an insurance company?

Height and weight

Which of the following is not included in the general form of the insurance application?

Consumer reports

Which of the following is used to determine a consumer's eligibility for personal credit, insurance, or employment?

A statement of good health

While delivering the policy, the producer must obtain a signed document that the insured's health is the same as when he or she applied for the insurance policy. This document is called