Field Underwriting Quiz
An insurer wants to do an investigative consumer report on an applicant. How many days do they have to notify them?
3
An insurer feels they are being used to launder a large amount of money. They must file a suspicious activity report within...
30 days of initial discovery
An insurer is going to do an investigative consumer report on the applicant. The applicant would like to know more information. How many days do they have to get that to them?
5
A producer submits a completed and signed application to the underwriter along with the first premium check. After checking the results of the physical exam, the underwriter issues a 'rated' policy. All of the following will be required EXCEPT:
A new completed and signed application
The MIB was formed to prevent...
Adverse Selection
All of the following are a part of a Life insurance policy, EXCEPT the:
Agent Report
In order to comply with Fair Credit Reporting Act, at which of the following times must a producer notify an applicant that a credit report may be requested?
At time of application
Which document describes and insured's medical history, including diagnosis and treatments?
Attending Physician Statement.
All of the following must sign the application, EXCEPT:
Beneficiary
If an applicant completes an application for insurance and gives the producer a check for the first premium, the producer should give the applicant a:
Conditional Receipt
A prospect's statements made in the application for insurance constitute a part of which of the following?
Consideration Clause
If a policy gets issued with an amendment, the agent must do all of the following EXCEPT
Deliver the policy in person, explain the changes and advise the client that they can either accept the new policy or reject it
When a policy is issued with a premium surcharge, what should the producer do?
Deliver the policy in person, explain the changes and advise the client that they can either accept the new policy or reject it
What must be given to an applicant to help them make more informed and educated decisions about their choice of insurance?
Disclosure Statements
An applicant has been denied coverage because of information in a consumer report. Which federal legislation may protect the consumer if the information was inaccurate?
Fair Credit Reporting Act
Coverage becomes effective when the:
First premium has been paid and the application is approved
If a policy gets issued with an amendment, the agent must do all of the following EXCEPT
Have the insured complete a new application
Once completed and signed by the applicant, a producer may change an application:
If the applicant initials the change
What do individuals use to transfer their risk to a larger group?
Insurance
In the formation of a Life insurance contract, the special significance of a Conditional Receipt is that it:
Is intended to provide coverage on a date earlier than the date of the issuance of the policy
Which of the following statements about a Conditional Receipt is true?
It is an interim Insuring Agreement
Which of the following is true when the insurer issues a 'rated' policy:
It is considered to be a counteroffer
If an insurer issues a policy with an unanswered question then...
It will be interpreted as if they had waived their right to ever have it answered and they cannot deny a claim
What is the maximum fine for violating the Fair Credit Reporting Act, and who is it that gets fined?
$2,500 - The reporting agency
Insurance companies got together to form what organization?
MIB
What type of statement on an application could effect the way an underwriter looks at an applicant for coverage? (Big Lie)
Material misrepresentation
What is it called when an applicant makes an untruethful statement on their application?
Misrepresentation
Insurance contracts are unilateral in nature, meaning...
Only one of the parties is legally bound
Joe completed the application and paid his first month's premium to his agent, who gave him a conditional receipt. The next day, Joe was killed in a car wreck. What is the insurance company obligated to do?
Pay the full death benefit
What constitutes the insurers consideration in a policy?
Promising to pay benefits
An applicant for an A&H insurance policy has a heart condition of which he is unaware and therefore he answers "no" to the question pertaining to heart problems. His answer is considered to be a:
Representation
What is a statement that is believed to be true to the best of the applicant's knowledge
Representation
Insurance is the transfer of...
Risk
A high risk applicant for insurance is considered to be what type of risk to the insurance company?
Substandard
The Fair Credit Reporting Act requires that:
The applicant be advised, in advance, that a consumer report may be ordered
You complete an application on Joe. Joe gives you a check for the first month's premium. 2 days later you turn it into the insurance company, a week later they issue the policy. One week after that you deliver the policy. What is the effective date of coverage?
The date of application
Dennis Wiggins makes application for an A&H policy and pays his producer the initial premium. The producer gives Mr. Wiggins a conditional receipt. His coverage will become effective when:
The insurance company accepts the risk
For a life insurance policy to be considered to be legal, all of the following must be present, EXCEPT
The insured must not be of legal age
If an applicant for insurance is issued a conditional receipt and dies the next day, what happens?
The insurer will pay a benefit as long as they would have approved them anyway
What happens when the company comes back with a counteroffer?
They are issuing the original policy with an amendment
Changes in an insurance application can be accomplished by all of the following methods, EXCEPT
Using whiteout
Insurable Interest must exist...
When policy ownership is transferred
When completing an application, a producer should do which of the following?
Witness the applicant's signature