Missouri Life and Accident and Health Quiz 4
An insurer requests that an applicant for life insurance undergo an HIV test. Which of the following is true?
A consent form must be signed by the applicant prior to the test.
The MIB is best described as:
A nonprofit organization that supplies insurability information
Who is informed of a positive HIV/AIDS test?
Applicant and underwriter
The term attributed to the person who applies for insurance coverage is _______; the term attributed to the person insured by the policy is ________.
Applicant; insured
What is the basic source of information for life insurance underwriting and policy issue?
Application
Which of the following is the primary source of information used in underwriting an insurance policy?
Application
Which report may contain information gathered through interviews with friends and neighbors, employers and coworkers, who know the insured?
Investigative report
All of the following are important underwriting factors for risk classification in a health insurance policy, EXCEPT:
Marital status
Part II of the life insurance application includes:
Medical Information
Which of the following is not an underwriting factor?
National origin
Which of the following best describes the MIB?
Nonprofit trade organization that supplies insurability information to member companies
James has above average health and is physically active. He has never smoked. Which risk classification will James most likely be rated?
Preferred
Rates for insurance policies are based on:
Sex and age
Which of the following best describes a life insurance policy in which the proposed insured is not required to undergo a medical examination?
Simplified issue
All of the following are involved in the collection of an applicant's medical history, EXCEPT:
The consumer report
Which of the following terms describes a person who is the applicant and policyowner of an insurance policy, but not the insured?
Third party ownership
Insurance agent Margaret receives life insurance applications from Tim and Tom, who are identical twins, and are each applying for the exact same type of policy with the same face amount. The insurance company issues the policies as applied for, but charges Tom a 15% higher premium. Which of the following best explains the higher premium charged to Tom?
Tom's risk classification
This employee of the insurer assigns risk categories to applicants:
Underwriter
Which one of the following forms does NOT require an applicant's signature?
Agent's report
With respect to credit reports, which of the following best describes the purpose in obtaining an inspection or investigative report on an applicant, for an insurance policy?
All of the above
Gerald has a chronic medical condition. What will his risk classification be? How will his premium be affected?
Gerald's risk classification will be substandard. His premium will be higher.
Which of the following factors is not used in the underwriting process?
Highest level of education completed
Which part of the insurance application is described by the following: the applicant's general information, including name, date of birth, age, sex, social security number, marital status, address, occupation and income are collected?
Part 1
Which part of the insurance application collects information about the applicant's medical history?
Part 2
What action will the life insurance company most likely take when an applicant for a life insurance policy is discovered to be substandard risk?
Require the applicant pay additional premium
Which of the following best describes the main purpose of the Medical Information Bureau (MIB)?
The MIB collects and shares medical information with member insurance companies.
The process of selecting and classifying risks is best described by which of the following terms?
Underwriting
Which of the following best describes the process used to select and classify risks?
Underwriting
____________ is/are used to classify risks and assign premium rates that accurately reflect the amount of risk undertaken by the insurer.
Underwriting
