Podcast
Questions and Answers
The Medical Information Bureau (MIB) provides what kind of information to an insurance company?
The Medical Information Bureau (MIB) provides what kind of information to an insurance company?
Which of these is NOT required when an insurance company requests a consumer report on an applicant?
Which of these is NOT required when an insurance company requests a consumer report on an applicant?
Life insurance underwriting would consider which of these factors as unimportant?
Life insurance underwriting would consider which of these factors as unimportant?
Information needed for the underwriting process can be obtained from which of these sources?
Information needed for the underwriting process can be obtained from which of these sources?
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Sexual orientation, religious preference, and geographical location are not allowed to be used in the underwriting process. Why is this so?
Sexual orientation, religious preference, and geographical location are not allowed to be used in the underwriting process. Why is this so?
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Which of these avocations is considered hazardous to a life insurance underwriter?
Which of these avocations is considered hazardous to a life insurance underwriter?
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A signed good health statement would be collected by a life producer at the time of?
A signed good health statement would be collected by a life producer at the time of?
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When a producer submits an application that reveals personal information regarding the applicant, who supplies the privacy notice?
When a producer submits an application that reveals personal information regarding the applicant, who supplies the privacy notice?
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The initial premium for a life insurance policy is typically handled in what way?
The initial premium for a life insurance policy is typically handled in what way?
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The Medical Information Bureau consists of members from which group?
The Medical Information Bureau consists of members from which group?
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What must be given to a life insurance applicant when the agent receives an application and the initial premium?
What must be given to a life insurance applicant when the agent receives an application and the initial premium?
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Which of these documents is signed by an applicant at policy delivery that certifies no change in health has occurred since the original application date?
Which of these documents is signed by an applicant at policy delivery that certifies no change in health has occurred since the original application date?
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The reason for backdating a policy is?
The reason for backdating a policy is?
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Study Notes
Medical Information Bureau (MIB)
- MIB provides insurance companies with an applicant's extensive medical history.
- Membership of MIB is comprised of insurance companies.
Consumer Reports
- Disclosure to the applicant about obtaining a consumer report is required.
- Consent from the applicant is necessary for requesting a report.
- Agent's consent is not required in this process.
Life Insurance Underwriting Factors
- Marital status is deemed unimportant in life insurance underwriting.
- Key underwriting considerations include gender, age, and weight.
Underwriting Information Sources
- Attending Physicians Reports (APR) are a valuable source of information for underwriting processes.
- Other potential sources may include national associations and health agencies.
Discriminatory Factors in Underwriting
- Sexual orientation, religious preference, and geographical location cannot be utilized in underwriting due to fairness concerns.
- Such factors are prohibited as they are considered unfair discrimination.
Hazardous Avocations
- Scuba diving is classified as a hazardous activity that affects life insurance underwriting decisions.
Good Health Statement
- A signed statement of good health may be required from the applicant at the time of policy delivery.
Privacy Notice Responsibility
- The insurance producer must provide the applicant with a privacy notice when personal information is submitted.
Initial Premium Handling
- The initial premium for a life insurance policy is usually collected by the producer and sent directly to the insurer.
Conditional Receipt
- A conditional receipt is provided to an applicant once the initial premium is received by the agent.
Health Certification at Policy Delivery
- During policy delivery, the applicant may need to sign a good health statement certifying no changes in health since the application date.
Backdating a Policy
- Backdating a life insurance policy allows applicants to use premium rates based on an earlier age, potentially lowering their costs.
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Description
Test your knowledge on underwriting and policy issue with these flashcards from Chapter 6 of Life Insurance. Each question is designed to reinforce your understanding of the Medical Information Bureau and other key concepts in the life insurance application process.
