All of these are typically sources of underwriting information for life or health insurance EXCEPT
* Consumer reports
* Medical Information Bureau (MIB) reports
* Disclosure authorization response
* Attending physician's statement (APS)
Disclosure authorization response
When does a life insurance policy typically become effective?
* When the policy is issued
* When initial premium is collected and policy is issued
* When the application is completed and signed
* When the completed application is signed and initial premiu
When initial premium is collected and policy is issued
Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined?
Adverse calculation
Underwriting
Risk classification
Actuarial determination
Underwriting
Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?
Standard risk
Preferred risk
Unacceptable risk
Substandard risk
Substandard risk
Which of these is likely to occur when life or health insurance is being applied for?
The Medical Information Bureau (MIB) will determine the risk classification
The agent is required to report all medical information to the Medical Information Bureau (MI
Medical history from the insured may be reviewed and reported
Which of these is considered to be a document that describes the critical segments of a life insurance policy?
Buyer's guide
Policy summary
Consumer report
Buyer's summary
Policy summary
What is the purpose of the Medical Information Bureau (MIB)?
To accept or decline insurance applicants
To set the premium rates for insurers
To help underwriters evaluate risk
To perform physical examinations on applicants
To help underwriters evaluate risk
Which of the following does a life insurance policy summary normally include?
The policy's cash value
Agent's report
Policyowner's MIB report
Stated beneficiary
The policy's cash value
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT
Agent's report
Medical Information Bureau (MIB)
Inspection reports
National Association of Insurance Underwriters
National Association of Insurance Underwriters
Which of the following signatures is not required on an individual insurance application?
Producer
Applicant
Insured
Insurer
Insurer
What is involved when a life insurance policy has been backdated?
Setting a policy's effective date prior to a preexisting condition
Redating a policy after it has been issued
Reinstating a lapsed policy
Making the policy effective on an earlier date than
Making the policy effective on an earlier date than the present
Which scenario would most life insurance policies exclude coverage for?
A tourist traveling abroad on a major airline carrier
An individual who has a hobby racing cars once a month
An airline pilot who flies for a commercial carrier
A soldier on leave at
An individual who has a hobby racing cars once a month
Underwriters can acquire information from all of the following sources EXCEPT
Medical Information Bureau (MIB)
consumer reports
attending physician's statements
genetic testing
genetic testing
An insurance applicant with a below-average likelihood of loss is typically considered to be a
preferred risk
subpar risk
declined risk
standard risk
preferred risk
Which of the following would be a valid reason why a policy premium would be higher than the standard premium?
The insurer is not a member of the MIB
The agent quoted the wrong price
The insured does not have the necessary financial reserves
The insured d
The insured does not meet established underwriting requirements
A field underwriter's main task is
assign a risk classification to the insured
report medical information to the Medical Information Bureau (MIB)
to ensure an applicant's medical information is accurate and complete
to approve or decline an applicant
to ensure an applicant's medical information is accurate and complete
An applicant's character and personal habits can be obtained for underwriting purposes from which source?
Investigative consumer report
Attending physician's statement
Medical Information Bureau (MIB)
Credit report
Investigative consumer report
Which of the following would be considered an underwriting duty of an agent?
Requesting medical information from the Medical Information Bureau (MIB)
Completing all applications and collecting initial premiums
Accepting or declining an application
Assigni
Completing all applications and collecting initial premiums
Preferred risk policies with reduced premiums are issued by insurance companies because the insured has
a higher face amount than average
a better ability to pay premiums over a long period of time
worse than average mortality or morbidity experience
bett
better than average mortality or morbidity experience
Upon policy delivery, which of the following must a producer have an applicant sign if no initial premium was collected with the life insurance application?
A waiver of premium
A replacement form
A good health statement
An exclusion
A good health statement
An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of
rebating
coercion
fraud
twisting
fraud
An attending physician's statement would be appropriate for which life insurance purpose?
Attending physician's statements are mandatory during the application process
At the request of the applicant to assist in the underwriting decision
At the request o
At the request of the insurer to assist in the underwriting decision
Which of these is NOT considered to be a risk factor in life insurance underwriting?
Number of children
Health history
Hobbies
Occupation
Number of children
How many months can a life insurance policy normally be backdated from the date of application?
3
6
9
12
6
An insurer has a right to screen applicants for HIV in which of the following ways?
Blood test for HIV
Inquiring about risky sexual behavior
Inquiring about sexual orientation
Automatically declining an application due to sexual orientation
Blood test for HIV
The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?
An agent establishes insurable interest
An individual does not have insurable interest on his or her own life
Insurable interest only
Insurable interest can be based on the love and affection of individuals related by blood or law
A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?
Standard
Substandard
Acceptable
Preferred
Preferred
A change in an insurance application requires
an initial made by the producer
an initial made by the applicant
approval by the insurer
submitting a new application
an initial made by the applicant
All of these are considered key factors in underwriting life insurance EXCEPT
Tobacco use
Health history
Age
Marital status
Marital status
Statements made by an insurance applicant on an application are considered to be
irrevocable
warranties
representations
guarantees
representations
An individual most likely will have an insurable interest in insuring a person's life if
an economic interest exists for the continuance of the insured's life
a financial interest exists at the time of insured's death
there is any blood relationship with
an economic interest exists for the continuance of the insured's life
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
Claim will be denied by insurer
Claim will be paid if money was received by the insurance company
Claim will be paid if unde
Claim will be paid if application is approved
In which of the following relationships would there NOT be an insurable interest?
Parent to child
Business partner to business partner
Brother to sister
Business owner to business customer
Business owner to business customer