Underwriting and policy issue

Which of these is likely to occur when life or health insurance is being applied for?

Medical history from the insured may be reviewed and reported

Which of the following statements is CORRECT regarding an individual applying for life or health insurance? The applicant waives all privacy rights The applicants family medical history is always required The applicants medical history is irrelevant The applicants medical history may be analyzed and reported

The applicants medical history may be analyzed and reported

What happens when an insurance policy is backdated?

The policy's effective date is earlier than the present

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

A change in an insurance application requires

an initial made by the applicant

An insurance applicant with a below-average likelihood of loss is typically considered to be a

preferred risk

An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT providing disclosure information to the application Collecting initial premium policy delivery providing commission information to the applicant

providing commission information to the applicant

How many months can a life insurance policy normally be backdated from the date of the application?

6

An individual most likely will have an insurable interest in insuring a persons life if

An economic interest exists for the continuance of the insured life

Which scenario would most life insurance policies exclude coverage for? A tourist traveling aboard on a major airline carrier An individual who has a hobby racing cars once a month An airline pilot who flies for a commercial carrier A soldier on leave at home

An individual who has a hobby racing cars once a month

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

Which of the following relationships would there NOT be an insurable interest? Parent to child Business partner to business partner Brother to sister Business owner to business customer

Business owner to business customer

Which of the following is a requirement for ANY change in an insurance application?

Change must be initialed by the applicant

All of these are typically sources of underwriting information for life or health insurance EXCEPT Consumer reports Medical information bureau (MIB) reports Disclosure authorization response Attending physicians statement (APS)

Disclosure physicians statements

Underwriters can acquire information from all of the following sources EXCEPT Medical Information Bureau Consumer reports Attending physicians statements Genetic testing

Genetic testing

Which of the following signatures is not required on an individual insurance policy? Producer Applicant Insured Insurer

Insurer

Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application? A waiver of premium A replacement card A good health statement An exclusion

A good health statement

Field underwriting performed by the producer involves

Completing the application and collecting initial premium

Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT The producer The insured The policyowner The beneficiary

The beneficiary

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

Preferred risk policies with reduced premiums are issued by insurance companies because the insured has

better than average monthly or morbidity experience

What would happen if a life insurance applicant is given a conditional receipt from an insurance agent then dies the next day?

Claim will be paid if application is approved

Which of the following would be considered an underwriting duty of an agent? Requesting medical information from the Medical Information Bureau (MIB) Completing all applications and collecting premiums Accepting or declining an application Assigning a risk classification

Completing all applications and collecting initial premiums

The principle of insurable interest, in regards to a life insurance contract, is accurately describes in which statement? An agent establishes insurable interest An individual does not have insurable interest on his or her own life Insurable interest only pertains to business arrangements Insurable interest can be based on the love and affection of individuals related by blood or law

Insurable interest can be based on the love and affection of individuals related by blood and law

In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest? Individuals are assumed to have insurable interest in themselves Insurable interest is established by a court of law Insurable interest can be established sufficiently by sentimental attachment alone Insurable Interest must exist at the time of the application

Insurable interest can be established sufficiently by sentimental attachment alone

What is the purpose of the Medical Information Bureau (MIB)?

To help underwriters evaluate risk

An applicant's character and personal habits can be obtained for underwriting purposes from which source?

Investigative consumer report

All of these are considered key factors in underwriting life insurance EXCEPT Tobacco use Health history Age Marital status

Marital Status

All of the following are considered sources of information that can assist an underwriter in determining whether or not to accept risk EXCEPT Agents report Medical information bureau Inspection reports National association of insurance underwriters

National association of insurance underwriters

Which of these is NOT considered to be a risk in life insurance underwriting? Number of children Health history Hobbies Occupation

Number of children

Which of these is considered to be a document that describes the critical segments of a life insurance policy? Buyers guide Policy summary Consumer report Buyers summary

Policy summary

Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies? Standard risk Preferred risk Unacceptable risk Substandard risk

Substandard risk

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 requirement

Which of the following does a life insurance policy summary normally include? The policy's cash value Agents report Policyowner s MIB report Stated beneficiary's

The policy's cash value

Which of the following pertains to the analysis of an applicants personal information determining whether insurance should be issued or declined ?

Underwriting

When does a life insurance policy typically become effective?

When initial premium is collected and policy issues

An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of

fraud

What is involved when a life insurance policy has been backdated?

making the policy effective on an earlier date than the present

A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?

preferred

Statements made by an insurance applicant on an application are considered to be

representations

A field underwriter's main task is

to ensure an applicant's medical information is accurate and complete