Unit 9
Which of the following statements regarding the Fair Credit Reporting Act (FCRA) is CORRECT?
(a) Applicants must be notified within a short period of time that their credit report has been requested
Which of the following statements pertaining to a life insurance policy application is CORRECT?
(a) The names of both the insured and the beneficiary are indicated on the application
Which of the following statements about the Fair Credit Reporting Act is CORRECT?
(b) It provides that consumers have the right to question reports made about them by investigative agencies. They can give a written statement explaining their opinion on their report.
3. Which of the following statements about the Fair Credit Reporting Act is CORRECT?
(b) It provides that consumers have the right to question reports made about them by investigative agencies. They can give a written statement explaining their opinion on their report.
Which of the following statements pertaining to the Medical Information Bureau (MIB) is correct?
(c) The MIB provides assistance in the underwriting of life insurance. MIB acts like a clearing house for insurance companies
Elaine signs an application for a $50,000 nonmedical life policy, pays the first premium and receives a conditional insurability receipt. If Elaine were killed in an auto accident two days later
(b) her beneficiary would receive $50,000, if Elaine qualified for the policy as applied for No medical exams were required, so she was covered effective the date she signed the application since the policy would have been issued as applied for.
9. Generally, the party who delivers an insurance policy to the new policyowner is the
(b) sales agent The sales agent should deliver the policy in person. Reference: State Study Manual
Which of the following statements pertaining to the Medical Information Bureau (MIB) is correct?
(c) The MIB provides assistance in the underwriting of life insurance MIB acts like a clearing house for insurance companies.
All of the following statements about the classification of applicants are correct EXCEPT (a) a substandard applicant can never be rejected outright by the insurer (b) applicants who are preferred risks have premium rates that are generally lower than standard rate risks (c) an individual can be rated as a substandard risk because of a dangerous occupation (d) a standard applicant fits the insurer's guidelines for policy issue without special restrictions
(a) a substandard applicant can never be rejected outright by the insurer
If a medical report is required on an applicant, it is completed by
(b) a paramedic or examining physician Paramedics, nurses, and physicians contracted by the insurance company can do exams.
The primary distinction between the insurability and approval types of conditional receipts is when the
(b) coverage goes into effect With the approval receipt, coverage does not go into effect until the application is approved.
2. Which of the following statements about the Fair Credit Reporting Act is CORRECT?
(b) It provides that consumers have the right to question reports made about them by investigative agencies. They can give a written statement explaining their opinion on their report. Reference: State Study Manual, Unit 9, "The Underwriting Process"
If a medical report is required on an applicant, it is completed by
(b) a paramedic or examining physician Paramedics, nurses, and physicians contracted by the insurance company can do exams
Underwriting is a process of
(d) selection, classification and rating of risks Only Answer D is correct. Selection, classification, and rating of risk is the underwriting process.