Which of the following statements is CORRECT regarding an individual applying for life or health insurance?
the applicants medical history may be analyzed and reported
An underwriter's primary responsibility to an insurer is to protect against
adverse selection
When does a life insurance policy typically become effective?
when intital premium is collected and polciy is issued
Which of these is likely to occur when life or health insurance is being applied for?
Medical history from the insured may be reviewed and reported
What happens when an insurance policy is backdated?
the policys effective date is earlier then the present
Which of the following is a requirement for ANY change in an insurance application?
change must be initialed by the applicant
Signatures for an insurance application MUST be obtained by the producer from all of the following sources EXCEPT
the beneficiary
Which of the following does a life insurance policy summary normally include?
the policys cash value
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 good health statement
An insurance applicant with a below-average likelihood of loss is typically considered to be a
preferred risk
Which of these is considered to be a document that describes the critical segments of a life insurance policy?
policy summary
What is involved when a life insurance policy has been backdated?
making the policy efective on an earlier date than the present
A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?
preferred
What guarantees that the statements supplied by an insurance applicant are true?
warranty
An attending physician's statement would be appropriate for which life insurance purpose?
at the request of the insurer to assist in the underwriting decision
All of these are considered key factors in underwriting life insurance EXCEPT
marital status
An applicant intentionally lying to an insurance company on an application in order to obtain a cheaper premium is an example of
fraud
Which scenario would most life insurance policies exclude coverage for?
an individual who has a hobby racing cars once a month
An insurance producer is often responsible for field underwriting during the application process. All of these are possible field underwriting roles EXCEPT
providing ocmmission information to the applicant
Statements made by an insurance applicant on an application are considered to be
representations
In which of the following relationships would there NOT be an insurable interest?
business owner to business customer
A change in an insurance application requires
an intital made by the applicant
A field underwriter's main task is
to ensure an applicants medical infromation is accurate and complete
How many months can a life insurance policy normally be backdated from the date of application?
6
Which of the following describes a person who is NOT acceptable by an insurer at standard rates because of health history, occupation, or hobbies?
substandard risk
Preferred risk policies with reduced premiums are issued by insurance companies because the insured has
better than average mortality or morbidityy experiance
What is the purpose of the Medical Information Bureau (MIB)?
to help underwriters evaluate risk
Which of these is NOT considered to be a risk factor in life insurance underwriting?
number of children
Which of the following pertains to the analysis of an applicant's personal information and determining whether insurance should be issued or declined?
underwriting
An insurer has a right to screen applicants for HIV in which of the following ways?
blood test for hiv
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 paid if application is approved
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT
national assocation of insurance underwriters
An applicant's character and personal habits can be obtained for underwriting purposes from which source?
investigative consumer report
All of these are typically sources of underwriting information for life or health insurance EXCEPT
disclosure authorization response
In regards to a life insurance contract, which of the following statements is NOT true regarding the concept of insurable interest?
insurable interst can be established sufficiently by sentimental attatchment alone
The principle of insurable interest, in regards to a life insurance contract, is accurately described in which statement?
Insurable interest can be based on the love and affection of individuals related by blood or law
An individual most likely will have an insurable interest in insuring a person's life if
an economic interst exists for the continuance of the insureds life
Underwriters can acquire information from all of the following sources EXCEPT
genetic testing
Field underwriting performed by the producer involves
completing the application and collecting inital premium
Which of the following signatures is not required on an individual insurance application?
insurer
Which of the following would be a valid reason why a policy premium would be higher than the standard premium?
The insured does not meet established underwriting requirements
Which of the following would be considered an underwriting duty of an agent?
Completing all applications and collecting initial premiums