8) The application & 9) Substandard risk

what type of risk will result in the highest premium?

substandard risk

which of the following best describes the MIB?

It's a nonprofit organization that maintains underwriting information on applicants for life and health insurance.

which of the following would provide an underwriter with information concerning an applicants health history

MIB

The federal fair credit reporting act

Regulates consumer reports

The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective?

as of the applicaiton date

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply?

5 days

Is the basic source of information used by the company in the risk selection process?

Application

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?

The customers associates, friends and neighbors provide the reports data

An insurer wants to begin underwriting procedures for an applicant. What source will it consult for the majority of its underwriting information?

application

All of the following are duties and responsibilities of producers at the time of application except

change any incorrect statement on the application by personally initialing next to the corrected statemetn

what reports will provide the underwriter with the information about an insurance applicants credit?

consumer report

an individual applied for an insurance policy and paid the initial premium. the insurer issued a conditional receipt. Five days later the applicant had to sumbit a medical exim. what would be the policys effective date

date of medical exam

All of the following information about the applicant is identified in the general information section of a life insurance application except

education

If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT

erase the incorrect answer and record the correct answer

An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that?

inspection

The Medical Information Bureau was created to protect

insurance companies from adverse selection by high risk persons

an insurer wants to obtain information from investigators regarding an applicant for insurance. What must the insurer do in order to legally acquire this information?

present the insured with a disclosure authorization notice

An applicant signs an application for a $25,000 life insurance policy, pays the initial premium, and receives a conditional receipt. If the applicant is killed in an automobile accident the next day,

the beneficiary would receive $25,000 if it was determined that the insured qualified for the policy applied for

which of the following protects consumers against the circulation of inaccurate or obsolete personal or financial information?

the fair credit reporting act

Why should the producer personally deliver the policy when the first premium has already been paid?

to help the insured understand all aspects of the contract

what process do insurance companies use to determine whether or not a particular applicant is insurable

underwriting

what is true regarding the consent of the proposed insured for insurance contracts in kentucky?

only individual policies must be consented by the insured