Podcast
Questions and Answers
All are true statements regarding the underwriting process, EXCEPT:
All are true statements regarding the underwriting process, EXCEPT:
- Underwriting involves evaluating risk and determining premiums.
- Underwriters must follow federal regulations.
- AIDS and HIV virus exams can be conducted in a discriminatory fashion. (correct)
- AIDS and HIV testing must be conducted in a uniform fashion and cannot be discriminatory.
When an insurance application is taken by a producer, which of these statements is true?
When an insurance application is taken by a producer, which of these statements is true?
Any changes made on the application require the applicant's initials.
The underwriting process involves all of these, EXCEPT for:
The underwriting process involves all of these, EXCEPT for:
- Medical history
- Risk assessment
- Policy loan (correct)
- Applicant's lifestyle
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?
What would the Medical Information Bureau (MIB) identify?
What would the Medical Information Bureau (MIB) identify?
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Which of these factors do NOT play a role in the underwriting of a life insurance policy?
Who is NOT required to sign a life insurance application?
Who is NOT required to sign a life insurance application?
What is being delivered during a policy delivery?
What is being delivered during a policy delivery?
When does a life insurance contract become effective if the initial premium is not collected during the application process?
When does a life insurance contract become effective if the initial premium is not collected during the application process?
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:
Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine:
Why is an applicant's signature required on a life insurance application?
Why is an applicant's signature required on a life insurance application?
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and the ______.
In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and the ______.
Which of these do NOT constitute policy delivery?
Which of these do NOT constitute policy delivery?
On delivery of a policy, a signed statement of good health is typically requested if:
On delivery of a policy, a signed statement of good health is typically requested if:
When does coverage become effective for an applicant who filled out a life insurance policy application without the initial premium?
When does coverage become effective for an applicant who filled out a life insurance policy application without the initial premium?
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Study Notes
Underwriting Process
- Underwriting must be non-discriminatory for AIDS and HIV testing.
- Changes on an insurance application necessitate the applicant's initials.
- Policy loans are not part of the underwriting process.
Factors Affecting Premium Rates
- Risk classification is essential in determining premium rates for Whole Life policies.
- Marital status is not a consideration in life insurance underwriting.
Medical Information Bureau (MIB)
- MIB can indicate previous marijuana use through testing records.
Life Insurance Application Requirements
- The beneficiary does not need to sign the life insurance application.
- A signed application along with the initial premium is required for immediate coverage in non-medical applications.
Policy Delivery
- Delivery of the insurance contract occurs to the proposed insured.
- Policy issuance with a rating does not constitute a policy delivery.
- A signed statement of good health is requested if the application was submitted without the initial premium.
Contract Effectiveness
- Life insurance contracts become effective upon delivery and collection of the first premium.
- In a case where the initial premium is collected after approval, coverage becomes effective on the date of premium collection.
Consumer Reports
- Underwriters use consumer reports to assess the likelihood of timely premium payments.
Signature Requirement
- The applicant's signature is needed to confirm the accuracy of their application statements.
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