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IL Life and Health Insurance > Life Underwriting and Applications > Flashcards

Life Underwriting and Applications Flashcards

1
Q

Application

A

Primary tool used to evaluate an applicant for insurance

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2
Q

Application is considered part of the contract and must be…

A

Accurate

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3
Q

Application Issues

A

Any corrections must be initialed by the applicant

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4
Q

Portions left blank on application that aren’t caught by the insurer will…

A

Waive the insurer’s right to that information

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5
Q

Required Signatures

A

Applicant and producer

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6
Q

In rare cases, application must also be signed by…

A

Insured person (if not owner); Parent/Guardian (if under 18)

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7
Q

Agent/Producer Report

A

Information from the producer about the applicant

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8
Q

Report must include…

A

Relationship to the applicant; knowledge of insurance being replaced; Understanding of applicant’s health

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9
Q

Preferred Risk

A

Higher than average life expectancy and low cost

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10
Q

Standard Risk

A

Average life expectancy and average cost

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11
Q

Substandard Risk

A

Lower than average life expectancy and high cost

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12
Q

Declined Risk

A

Uninsurable

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13
Q

Life insurers care about…

A

Hospitalizations, surgeries, Rx, specialist visits, family med history, tobacco use, conditions that impact mortality

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14
Q

Mortality

A

Life expectancy

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15
Q

Morbidity

A

Likelihood of disability

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16
Q

Attending Physician’s Statement

A

Info requested from applicant’s physician to clarify what’s on the application

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17
Q

Attending physician’s statement requires applicant’s consent and…

A

Can’t be shared by insurer for other purposes

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18
Q

Simplified issue policies won’t require…

A

Medical exam

19
Q

Most policies will at least require basic tests for…

A

Drugs, nicotine and serious diseases

20
Q

Extensive exams might be required for…

A

Large policies and/or inconclusive info on the application

21
Q

HIV tests are common but must me done with…

A

Consent and remain confidential

22
Q

HIV tests are paid by…

A

Insurer

23
Q

HIV tests do not ask questions about…

A

Sexual history

24
Q

MIB records can only indicate “abnormal” tests and can’t…

A

Explicitly disclose HIV status

25
Q

Men have lower life expectancies than women and…

A

Generally pay more

26
Q

Dangerous hobbies can be handled by…

A

Increasing the premium or excluding activity via a rider

27
Q

Conditional Receipt

A

Provides temporary coverage while policy/application is being issued/evaluated

28
Q

Temporary coverage starts either on…

A

Date of application or date of med exam, whichever is later

29
Q

Conditional receipts require…

A

Prepayment and completed application

30
Q

Conditional Receipt: Death will only be covered in the interim if…

A

Carrier would’ve otherwise accepted the applicant at the original premium

31
Q

Effective Date

A

Date when the person has insurance

32
Q

Effective Date: If application + first premium + conditional receipt =

A

Later of application or med exam

33
Q

Effective Date: If application but no first premium…

A

When policy is delivered

34
Q

Death before effective date isn’t covered, but…

A

Beneficiary might receive return of premium

35
Q

If no prepayment occurred, payment must be received…

A

When policy delivered

36
Q

If no conditional receipt was used…

A

Statement of good health must be obtained

37
Q

Policy delivery might involve…

A

Providing summaries and buyer’s guides

38
Q

Statement of Good Health

A

Meant to confirm that health hasn’t changed since application

39
Q

Statement of good health is used when…

A

Application was submitted without first premium

40
Q

Statement of good health is intended to be done immediately prior to…

A

Policy delivery

41
Q

Backdating

A

Allows the applicant to be charged an amount based on a slightly lower age

42
Q

Backdating is solely used for…

A

Pricing

43
Q

Backdating can reduce the persons issue age at time of purchase up to…

A

6 months

44
Q

Backdating requires a one-time payment based on…

A

Person’s actual age at purchase

IL Life and Health Insurance (29 decks)

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