Unit 9 Life insurance underwriting and policy issue

If a medical report is required on an applicant it is completed by A. a home office underwriter b.a paramedic or examining officer c. the agent

b.a paramedic or examining officer

Which of the following statements pertaining to the Medical Information Bureau (MIB) is correct? A. the MIB is operated by a national network of hospitals b. information obtained by the MIB is available to all physcians c.the MIB provides assistance in the underwriting process d.applicants may request that MIB reports be attached to their policies

c.the MIB provides assistance in the underwriting process

All of the following statements about the classification of applicants are correct except a. a substandard applicant can never be rejected outright by the insurer b. applicants who are preferred risks have premium rates that are generally lower than standard rate risks c. an individual can be rated as a substandard risk because of a dangerous occupation d. a standard applicant fits the insurers guidelines

a. a substandard applicant can never be rejected outright by the insurer

Underwriting is a process of A. selection and issue of policies B. evaluation and classification c.selection, reporting, and rejection of risks d. selection, classification and rating of risks

d. selection, classification and rating of risks

Which of the following statements pertaining to a life insurance policy application is correct? a. the names of both the insured and the beneficiary are indicated on the application b. if an applicants age is shown erroneously on a life insurance application as 28 instead of 29, the result may be a premium quote that is higher than it should be c.the size of the policy being applied for does not affect the underwriting process.

a. the names of both the insured and the beneficiary are indicated on the application

Which of the following statements regarding the Fair Credit Reporting Act (FCRA) is correct? a.applicants must be notified within a short period of time that thier credit report has been requested. b.if an applicant for insruacne is rejected based on a consumer report c. if requested to do so, the insurance company must provide the actual consumer report to the applicant

a.applicants must be notified within a short period of time that thier credit report has been requested.

Elaine signs an application for a $50,000 non-medical life policy, pays the first premium, and receives a conditional insurability receipt. if Elaine were killed in an auto accident two days later a. the company could reject the application on the basis that death was accidental b. her beneficiary would receive $50k, if Elaine qualified for the policy as applied for c.the premium would be returned to Elaines family because the policy had not been issued d. the company could reject the death claim because the underwriting process was never completed

b. her beneficiary would receive $50k, if Elaine qualified for the policy as applied for

Which of the following statements about the Fair Credit Reporting Act is correct? A. It prohibits insurance companies from obtaining reports on applicants from outside investigative agencies b. it provides that consumers have the right to question reports made about them by investigative agencies c. it applies to reports about applicants that are made by insruance agents to thier companies

b. it provides that consumers have the right to question reports made about them by investigative agencies

The primary distinction between the insurability and approval types of conditional receipts is when a. the applicant pays the initial premium b. the coverage goes into effect c.the medical exam is given d.the applicant proves insurable

b. the coverage goes into effect

Generally, the party who delivers an insurance policy to the new policy-owner is A. the insurance companys home office b. the sales agent c.the states cheif financial officer d. the underwriter

b. the sales agent