ch 6 life insurance underwriting and policy issue

Which of the following does a life insurance policy summary normally include?

the policys cash value

In which of the following relationships would there NOT be an insurable interest?

Business owner to business customer

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

All of these are considered key factors in underwriting life insurance EXCEPT

marital status

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 would be a valid reason why a policy premium would be higher than the standard premium?

The insured does not meet established underwriting requirements

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

To help underwriters evaluate risk

An underwriter's primary responsibility to an insurer is to protect against

adverse selection

Field underwriting performed by the producer involves

completing the application and collecting initial premium

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

· better than average mortality or morbidity experience

An insurer has a right to screen applicants for HIV in which of the following ways?

· blood test for hiv

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

· making the policy efective on an earlier date than the present

An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT

· providing commission information to the applicant

What happens when an insurance policy is backdated?

· the policys effective date is earlier then the present