Chapter 2 - Life Insurance

Question 1

Conservation

Answer 1

Act of saving or keeping the existing policy and preventing it from being replaced

Question 2

Trial Application

Answer 2

One submitted without a premium

Question 3

Underwriting

Answer 3

Process of selection, classification, and rating

Process of determining if someone is insurance, classifying the risk, and determining the rate or premium to be charged

Question 4

Medical Information Bureau(MIB)

Answer 4

Used to collect adverse medical information about an applicant health and act as an information exchange

Member owned corporation

Question 5

Inspection Report

Answer 5

General report of the applicant finances, character, morals, work, hobbies, and other habits

Question 6

Agents Report

Answer 6

Personal statement submitted by the producer, to the insurer, regarding the applicants financial condition

Question 7

Rating Applicants

Answer 7

Underwriters analyze the information and determine if the applicant is an acceptable risk