Life underwriting
Preferred risk policies with reduced premiums are issued by insurance companies because the insured has
better than average mortality or morbidityy experiance
A change in an insurance application requires
an initial made by the applicant
Which of these is NOT considered to be a risk factor in life insurance underwriting?
# of children
In which of the following relationships would there NOT be an insurable interest?
Business owner to business customer
An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with?
Fair Credit Reporting Act
An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of
Fraud
Which of these is likely to occur when life of health insurance is being applied for?
Medical history from the insured may be reviewed & reported
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT Agent's report Medical Information Bureau (MIB) Inspection reports National Association of Insurance Underwriters
National Association of Insurance Underwriters
Which of the following would be a valid reason why a policy premium would be higher than the standard premium?
The insured does not meet established underwriting requirements
A field underwriter's main task is?
To ensure an applicant's medical information is accurate and complete
What guarantees that the statements supplied by an insurance applicant are true?
Warranty
An underwriter's primary responsibility to an insurer is to protect against
adverse selection
Field underwriting performed by the producer involves
completing the application and collecting inital premium
Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?
substandard risk
Which of the following does a life insurance policy summary normally include?
the policys cash value
An attending physician's statement would be appropriate for which life insurance purpose?
at the request of the insurer to assist in the underwriting decision
A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?
preferred risk
An insurance applicant with a below-average likelihood of loss is typically considered to be a
preferred risk
An insurer has a right to screen applicants for HIV in which of the following ways?
Blood test
