Field Underwriting Procedures

Question 1

If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following EXCEPT the applicant:
a) Ancestry
b) Credit history
c) Habits
d) prior insurance

Answer 1

A) Ancestry

Question 2

Which of the following is true about the requirements regarding HIV exams?
a) HIV exams may not be used as a basis for underwriting
b) the applicant must give prior informed written consent
c) results may be disclosed to the agent and the underwriter
d) prior informed oral consent is required from the applicant

Answer 2

b) the applicant must give prior informed written consent

Question 3

In a replacement situation, all of the following must be considered EXCEPT
a) Assets
b) Benefits
c) Limitations
d) Exclusions

Answer 3

a) Assets

Question 4

Which of the following is NOT the consideration in a policy?
a) The premium amount paid at the time of application
b) The promise to pay covered losses
c) The application given to a prospective insured
d) Something of value exhanged between parties

Answer 4

c) The application given to a prospective insured