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Questions and Answers
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?
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?
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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?
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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?
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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?
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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?
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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?
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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.
Studying That Suits You
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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.
