Chapter 2 (Company Underwriting)

Question 1

An insurance application is the __________ underwriters use for information about the applicant.

Answer 1

key source

Question 2

If, however, the underwriter sees answers to certain questions that could indicate greater risk, and the underwriter wants to obtain specific medical details, the underwriter will request a statement from the applicant’s physician. This is called an ______________

Answer 2

ttending Physician Statement (APS).

Question 3

In addition to an attending physician’s report, the underwriter will usually request a ______________ report.

Answer 3

Medical Information Bureau (MIB)

Question 4

It is a __________ the purpose of which it is to collect, maintain, and make available to insurance companies important underwriting information on applicants for life and health insurance.

Answer 4

nonprofit trade organization

Question 5

Insurers cannot refuse coverage solely on the basis of adverse information on an ______________

Answer 5

MIB report.

Question 6

Another service provided by the MIB to its member companies is the ______________

Answer 6

Disability Income Records System (DIRS)

Question 7

The higher the risk, the _________ the premium.

Answer 7

higher

Question 8

___________ risks are those individuals who meet certain requirements and qualify for lower premiums than the standard risk.

Answer 8

Preferred

Question 9

___________ risks are persons who, according to a company’s underwriting standards, are entitled to insurance protection without extra rating or special restrictions.

Answer 9

Standard

Question 10

_____________ risk applicants are not acceptable at standard rates because of physical condition, personal or family history of disease, occupation, or dangerous habits.

Answer 10

Substandard (High Exposure)