Field Underwriting Procedures Quiz

Which of the following would provide an underwriter with information concerning an applicant's health history? A The Medical Information Bureau B A medical examination C The agent's report D The inspection report

A The Medical Information Bureau

An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point? A Approved the application B Issued the policy C Neither approved the application nor issued the policy D Both approved the application and issued the policy

C Neither approved the application nor issued the policy

If only one party to an insurance contract has made a legally enforceable promise, what kind of contract is it? A A legal (but unethical) contract B Unilateral C Adhesion D Conditional

B Unilateral

An insurer has made all of the decisions regarding the provisions included in the insured's policy. The insured finds an objectionable provision and wants to negotiate it with the insurer but is not allowed to do so. Her only options are to reject the policy or accept it as is. Which contract feature does this describe? A Personal B Adhesion C Unilateral D Conditional

B Adhesion

To comply with Fair Credit Reporting Act, when must a producer notify an applicant that a credit report may be requested? A When the applicant's credit is checked B When the policy is delivered C At the initial interview D At the time of application

D At the time of application

What document describes an insured's medical history, including diagnoses and treatments? A Physician's Review B Individual Medical Summary C Comprehensive Medical History D Attending Physician's Statement

D Attending Physician's Statement

In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports? A They provide information about a customer's character and reputation. B The customer has no knowledge of this action. C The customer's associates, friends, and neighbors provide the report's data. D They provide additional information from an outside source about a particular risk.

C The customer's associates, friends, and neighbors provide the report's data.

An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then initial that change? A Applicant B Executive officer of the company C Insured D Agent

A Applicant

In terms of parties to a contract, which of the following does NOT describe a competent party? A The person must not be under the influence of drugs or alcohol. B The person must be of legal age. C The person must be mentally competent to understand the contract. D The person must have at least completed secondary education.

D The person must have at least completed secondary education.

What is a material misrepresentation? A Any misstatement by the producer B Concealment C A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company D Any misstatement made by an applicant for insurance

C A statement by the applicant that, upon discovery, would affect the underwriting decision of the insurance company

Whose responsibility is it to determine if all of the questions on an application have been answered? A The applicant B The beneficiary C The agent D The insurer

C The agent

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? A 10 days B 3 days C 5 days D 7 days

C 5 days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained? A 3 days B 5 days C 10 days D 14 days

A. 3 Days

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's A Ancestry. B Credit history. C Habits. D Prior insurance.

A. Ancestry

An insured is upset that her new health insurance policy was delivered to her by certified mail and not through her agent. Which of the following is true? A There is nothing wrong with this form of policy delivery. B The insured should complain to the insurer. C The insured should ask for a new policy to be delivered. D The policy will not be legal until it is delivered by an agent.

A There is nothing wrong with this form of policy delivery.