chapter 1 quiz Flashcards
which of the following is considered a field underwriting?
a. an agent
b. an insurer
c. an adjuster
d. a company underwriter
a
when must insurable interest exist in life insurance?
a. death of the insured
b. policy delivery date
c. time of claim
d. application date
d
if no receipt is issued at the time of application, a statement of good health is usually required at the time of
a. application
b. policy delivery
c. policy renewal
d. the paramedics report
b
the medical information bureau is
a. a government entity that reviews medial information
b. an association of physicians who write insurance rules
c. a directory of paramedical services and providers
d. a source of medical information to alert insurers to adverse medical history
d
in insurance contracts, a warranty is a
a. statement believed to be true
b. statement that must be true
c. policy benefits
d. product verification
b
a substandard risk compared to a standard risk would pay
a. a premium and surcharge
b. a lower premium
c. the same premium
d. a higher premium
d
all the following may have an insurable interest in the insured EXCEPT
a. the spouse
b. insured children
c. the employer
d. insured best friend
d
which of the following would be the main source of underwriting information used by the company in the risk selection process?
a. application
b. warranty
c. MIB report
d. attending physicians’ statement
a
an insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begins?
a. when the policy is received
b. after the free-look period
c. on the date of the application
d. on the date the policy is issued
c
what is the main responsibility of a company’s underwriting unit?
a. controlling business written by new agents
b. marketing and solicitation of insurance
c. issuing policies
d. risk selection and classification
d
which of the following documents describes specific information about policy provisions and benefits?
a. buyers guide
b. policy illustrations
c. policy summary
d. agents report
c
if the agent feels that there could be misrepresentation on the part of the applicant for insurance, what must the agent do?
a. informs the insurance company
b. changes the applicants answer to what the agent knows is true
c. erases the answer once the applicant submits the application
d. refuses the applicant
a
representations are statement made by the application that are
a. considered true to the best of the applicant’s knowledge
b. guaranteed to be true
c. found to be false after further investigation
d. immaterial to the actual acceptability if the insurance contract
a
if an agent fails to obtain an applicant’s signature on the insurance application, the agent must
a. returns the application to the applicant for signature
b. sends the application to the insurer with a note explaining the absence of signature
c. signs the application for the applicant
d. signs the application as an agent, stating that all the answers have been verified
a
which of the following includes information regarding a person’s credit, character, reputation, and habits?
a. agents report
b. MIB report
c. consumer report
d. fair credit report
c
