Ch1 extra
Underwriting
During which stage in the insurance process do insurers evaluate information that identifies adverse selection risks?
With the policy
If a policy includes a free-look period of at least 10 days, the Buyer's Guide must be delivered to the applicant no later than
Authorized
If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be
Pre-select applicants that would present the lowest risk of loss for the insurer
The information that the underwriter gathers for the insurer helps the insurer do what
Certificate of Authority
To legally transact insurance in this state, an insurer must obtain which of the following?
To explain features and benefits of a proposed policy to the consumer
What is the purpose of a disclosure statement in life insurance policies?
Within 30 days of initial discovery
What is the timeframe for filing relevant Suspicious Activity Reports?
Inspection Report
When an insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits
Policyholders
Who might receive dividends from a mutual insurer?
Aletory
describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
A presentation of nonguaranteed elements of a policy
The term "illustration" in a life insurance policy refers to what
Premium amounts and surrender values
What is included in a policy summary?
Applications
What is the primary source of information used for insurance underwriting?