Chapter 2 Underwriting

Part II of the life insurance application includes

Medical Information

This employee of the insurer assigns risk categories to applicants

Underwriter

Which of the following is the primary source of information used in underwriting an insurance policy?

Application

Gerald has a chronic medical condition. What will his risk classification be? How will his premium be affected?

Gerald's risk classification will be substandard. His premium will be higher.

Which of the following best describes the MIB?

Nonprofit trade organization that supplies insurability information to member companies

Rates for insurance policies are based on:

Sex and age

All of the following are involved in the collection of an applicant's medical history, EXCEPT

The consumer report

Insurance agent Margaret receives life insurance applications from Tim and Tom, who are identical twins, and are each applying for the exact same type of policy with the same face amount. The insurance company issues the policies as applied for, but charges Tom a 15% higher premium. Which of the following best explains the higher premium charged to Tom?

Tom's risk classification

Which of the following best describes the process used to select and classify risks?

Underwriting

Which of the following best describes a life insurance policy in which the proposed insured is not required to undergo a medical examination?

Simplified issue