Ch1 extra

Underwriting

During which stage in the insurance process do insurers evaluate information that identifies adverse selection risks?

With the policy

If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant no later than

Authorized

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Pre-select applicants that would present the lowest risk of loss for the insurer

The information that the underwriter gathers for the insurer helps the insurer do what

Certificate of Authority

To legally transact insurance in this state, an insurer must obtain which of the following?

To explain features and benefits of a proposed policy to the consumer

What is the purpose of a disclosure statement in life insurance policies?

Within 30 days of initial discovery

What is the timeframe for filing relevant Suspicious Activity Reports?

Inspection Report

When an insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits

Policyholders

Who might receive dividends from a mutual insurer?

Aletory

describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?

A presentation of nonguaranteed elements of a policy

The term "illustration" in a life insurance policy refers to what

Premium amounts and surrender values

What is included in a policy summary?

Applications

What is the primary source of information used for insurance underwriting?