Module 4: Risk Selection Flashcards
- Life insurance policies for which higher than standard premium
rates are payable are said to be
A. rated policies
B. contingent policies
C. non-participating policies
D. conditional policies
A
- Since the purchase of life insurance is a voluntary choice, the
individual must meet
A. comprehensive inspection report
B. certain standards of health and occupation
C. minimum income requirement
D. all of the above
B
- Which of the following factors would have the least effect on
the premium charged for life insurance?
A. age
B. occupation
C. income
D. all of the above
C
- Anti-selection occurs
A. when an agent thinks only of his own interest and not of his
policyowners
B. when you purchase bad stocks with expectation that they will
improve
C. when the insurance company accepts more than as share of poor risks
D. when person in poor health wish to buy insurance
D
- In insurance, risk means
A. chances of you being paid by the company
B. hazard on people’s lives
C. chances of the beneficiary being paid
D. none of the above
B
- In an application, the information that must be disclosed
include
A. only his date and place of birth
B. only his family history
C. every fact in his knowledge that is material to the insurance
D. only information he wants the agent to know
C
- Insurance Companies have various sources of information and
the insured. These are
A. application form
B. medical information bureau
C. inspection report
D. all of the above
D
- In insurance, risks are classified as
A. unacceptable and acceptable
B. regular and irregular
C. standard, substandard and decline
D. complete and incomplete
C
- A risk is considered substandard based on any or all of the
following criteria:
A. death, occupation and moral character
B. occupation, moral character and family health history
C. income, educational attainment and occupation
D. death, income and educational background
B
- A hazardous occupation could be defined
A. an occupation the duties of which expose the insured to a degree of
danger of sustaining injury
B. an occupation in unhealthy working conditions exposing the insured
to elements which can cause sickness
C. an occupation which exposes the insured to social hazards
D. all of the above
D
- Statements in the application forms are
A. guarantees
B. representation
C. warranties
D. none of the above
B
- Mr. Roel Reyes has been confined in a hospital 3 years prior
to his application for insurance. He therefore needs to give the
following information
A. name of attending doctor, diagnosis, date of confinement
B. the bill and medicines
C. name of doctor only
D. date of confinement only
A
- Insurance companies have a source of confidential medical
information on applicants for life insurance. This is the
A. agent’s confidential report
B. inspection report
C. financial standing
D. medical information* bureau
D
- An agent is filling up the Agent’s Confidential Report. What
information must he put in his report?
A. information about insured’s standing in the community
B. information about insured’s finances
C. all information he knows which are material to the application for
insurance
D. a & b only
C
