ch. 6 quiz

exclusion for the medical condition

An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n)

a premium that is higher than for a normal risk

A substandard or special class risk typically results in

Education level

Which of the following is NOT a factor typically used by insurers to classify risk?

conditional receipt

Rodney applies for an insurance policy and pays the first premium. The receipt given for the first premium is called a(n)

When attached to the policy, the application becomes part of the insurance clause

Which of these is NOT a reason the insurance application is important?

All of the above

Which of these statements is true regarding the Medical Information Bureau (MIB)?

Substandard

The highest premium payment would be charged to which risk classification?

conditional receipt

Pat applies for insurance, pays the initial premium, and receives a document from the agent. This document indicates that if the policy is issued, coverage begins on the date of the document. This document is called a(n)

An issued policy can never be changed by a producer

Which of the following statements concerning a life insurance policy is TRUE?

Special class risks

What kind of risk are amateur pilots normally classified as?