Section 6 - Life Insurance Underwriting And Policy Issue Flashcards
Which of the following is a requirement for any change in an insurance application?
A. Change must be initialed by the agent
B. Change must be initialed by the applicant
C. Change must be approved by the insurer
D. Change must be notarized
Change must be initialed by the applicant
The principle of insurable interest in regards to a life insurance contract is accurately described in which statement?
A. An agent establishes insurable interest
B. an individual does not have insurable interest on his or her own life
C. Insurable interest only pertains to business arrangements
D. Insurable interest can be based on the love and affection of individuals related by blood or law
Insurable interest can be based on the love and affection of individuals related by blood or law.
Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health, history, occupation, or hobbies?
A. Standard risk
B. Preferred risk
C. Unacceptable risk
D. Substandard risk
Substandard risk
What guarantees that the statement supplied by insurance applicant are true?
A. Assurance
B. Promise
C. Representation
D. Warranty
Warranty
Statements made by an insurance applicant on an application are considered to be
A Irrevocable
B. Warranties
C. Representations
D. Guarantees
Representations
Underwriters can acquire information from all of the following sources EXCEPT
A. Medical information bureau (MIB)
B. Consumer reports
C. Attending physician statements
D. Genetic testing
Genetic testing
What happens when an insurance policy is backdated?
A. The policy’s elimination period is waved
B. The timeframe for reinstating a labs policy is extended
C. The policies probation period is earlier than the present
D. The policy’s effective date is earlier than the present
The policies effective date is earlier than the present
An insurer has a right to screen applicants for HIV in which of the following ways?
A. Blood test for HIV
B. Inquiring about risky sexual behavior
C. Inquiring about sexual orientation
D. Automatically declining an application due to sexual orientation
Blood test for HIV
An individual most likely will have an insurable interest and insuring a persons life if
A. An economic interest exist for the continuance of the insured’s life
B. A financial interest exist at the time of insured’s death
C. There is any blood relationship with the insured
D. A business relationship exists
An economic interest exist for the continuance of the insured’s life
An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting rolls EXCEPT
A. Providing disclosure information to the applicant
B. Collecting initial premium
C. Policy delivery
D. Providing commission information to the applicant
Providing commission information to the applicant
An attending physician statement will be appropriate for which life insurance purpose?
A. Attending physician’s statement are mandatory during the application process
B. At the request of the applicant to assist in the underwriting decision
C. At the request of the producer to assist the underwriting decision
D. At the request of the insurer to assist in the underwriting decision
At the request of the insurer to assist in the underwriting decision
All of these are considered key factors and underwriting life insurance EXCEPT
A. Tobacco use
B. Health history
C. Age
D. Marital status
Marital status
Which of the following statements is correct regarding an individual applying for life or health insurance?
A. The applicant waves all privacy rights
B. The applicant’s family medical history is always required.
C. The applicant medical history is irrelevant
D. The applicants medical history may be analyzed and reported
The applicant medical history may be analyzed and reported
Signatures for an insurance application, must be obtained by the producer from all of the following sources EXCEPT
A. The producer
B. The insured
C. The policy owner
D. The beneficiary
Beneficiary
Preferred risk policies with reduced premiums are issued by insurance companies, because the insured has
A. A higher face amount of an average
B. A better ability to pay premiums over a long period of time
C. Worse than average mortality and morbidity experience
D. Better than average mortality are morbidity experience
Better than average mortality, or morbidity experience
