quiz 1
the medical information bureau is
a source of medical information to alert insurers to adverse medical history
over several years a policy owner paid $10,000 in premiums for his insurance policy. when he suffered a loss, the insurance company paid out $50,000 in benefits. what characteristic of an insurance contract does this describe?
aleatory
which of the following is considered a field underwriter
an agent
which of the following would be the main source of underwriting information used by the company in the risk selection process?
application
when must insurable interest exist in life insurance
application date
in an insurance contract, consideration refers to
exchange of something of value by both parties
all the following may have an insurable interest in the insured except
insured's best friend
what is the main responsibility of a company's underwriting unit?
issuing policies
an insured submits the full premium along with a completed application, and the policy is issued 10 days later. when does the coverage begin?
on the date of the application
if no receipt is issued at the time of application, a statement of good health is usually required at the time of
policy delivery
which of the following best describes the purpose of the USA PATRIOT Act with regards to the insurance industry?
to prevent terrorism activities through monitoring of financial transactions