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?
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.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on the key concepts of life insurance underwriting as outlined in Chapter 5. This quiz covers the underwriting process, application handling, and policies related to discriminatory practices. Enhance your understanding and prepare for insurance examinations.
