Underwriting and Policy Issue
Which of these is likely to occur when life or health insurance is being applied for?
Medical history from the insured may be reviewed and reported
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk except:
National Association of Insurance Underwriters
Which of these is not considered to be a risk factor in life insurance underwriting?
Number of children
Which of these is considered to be a document that describes the critical segments of a life insurance policy?
Policy summary
Statements made by an insurance applicant on an application are considered to be:
Representations
Which of the following statements is correct regarding an individual applying for life or heath insurance?
The applicant's medical history may be analyzed and reported.
Signatures for an insurance application must be obtained by the producer from all of the following sources except:
The beneficiary
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
Which of the following does a life insurance policy summary normally include?
The policy's cash value
A field underwriter's main task is:
To ensure an applicant's medical information is accurate and complete
What guarantees that the statements supplied by an insurance applicant are true?
Warranty
When does a life insurance policy typically become effective?
When initial premium is collected and policy is issued
How many months can a life insurance policy normally be backdated from the date of application?
6
An underwriter's primary responsibility to an insurer is to protect against:
Adverse selection
An individual most likely will have an insurable interest in insuring a person's life if:
An economic interest exists for the continuance of the insured's life
A change in an insurance application requires:
An initial made by the applicant
An attending physician's statements would be appropriate for which life insurance purpose?
At the request of the insurer to assist in the underwriting decision
Preferred risk policies with reduced premiums are issued by insurance companies because the insured has:
Better than average mortality or morbidity experience
Which of the following is a requirement for any change in an insurance application?
Change must be initialed by the applicant
All of these are typically sources of underwriting information for life or health insurance except:
Disclosure authorization response
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
An applicant's character and personal habits can be obtained for underwriting purposes from which source?
Investigative consumer report
Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?
A good health statement
Underwriters can acquire information from all of the following sources except:
Genetic testing
The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?
Insurable interest can be based on the love and affection of individuals related by blood or law
In regards to a life insurance contract, which of the following statements is not true regarding the concept of insurable interest?
Insurable interest can be established sufficiently by sentimental attachment alone.
Which of the following signatures is not required on an individual insurance application?
Insurer
What is involved when a life insurance policy has been backdated?
Making the policy effective on an earlier date than the present
All of these are considered key factors in underwriting life insurance except:
Marital status
An insurance applicant with a below-average likelihood of loss is typically considered to be a:
Preferred risk
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
Which of the following describes a person who is not acceptable by an insurer at standard rates because of health history, occupation, or hobbies?
Substandard risk
What happens when an insurance policy is backdated?
The policy's effective date is earlier than the present
What is the purpose of the Medical Information Bureau?
To help underwriters evaluate risk
Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined?
Underwriting
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
Claim will be paid if application is approved
Which of the following would be considered an underwriting duty of an agent?
Completing all applications and collecting initial premiums
Field underwriting performed by the producer involves:
Completing the application and collecting initial premium
