Health Ins Underwriting - Lesson 17 Flashcards
What is morbidity?
The frequency of illness, sickness, and disease.
Health insurance industry are concerned with:
Morbidity
And applicant’s lifestyle can affect insurability. Heavy drinking and a poor credit rating are examples of:
Moral hazard
The underwriter can classify the applicant in how many ways?
- Standard risk
- Preferred risk
- Substandard risk
- Uninsurable
If an underwriter finds an applicant to be a substandard risk, what would be an alternative?
- Limit the type of policy
- Charge a higher premium
- Use a restrictive rider
An employer who provides disability income insurance for his employees may include this cost as a deductible business expense. True or false?
True
Given example of someone who could be rated as a preferred risk.
A secretary who jogs three times a day, does not smoke, and is physically fit.
What are some risk factors to be considered during the underwriting process?
- Avocations
- Occupation
- Age
A substandard risk can be considered an insurable risk by the underwriting department. True or false?
True
What is used to determine health insurance premiums?
- Morbidity
- Interest
- Expense
When are disability income benefits taxable to employee?
If the employer has paid for the insurance premiums.
A table that reflects the average number of disabilities due to sickness and accidents at various ages is a:
Morbidity table
Which of the following is not used to determine disability insurance rates: loading, morbidity, interest, or mortality.
Mortality
Insurers may use which of the following as a basis for rate structure and disability insurance: sex, person’a color, natural origin, or medical history.
Sex and medical history
