Medical Information Bureau Quiz & Flashcards

Questions and Answers

Which of these do NOT constitute policy delivery?

Policy delivered to the applicant by the agent

Policy mailed to applicant

Policy mailed to agent

Policy issued with a rating (correct)

The underwriting process involves all of these EXCEPT for?

Policy loan (correct)

Risk classification

Credit report

Application

If the application is approved, when will coverage be effective?

The date the application was submitted to the insurance company

The date the sales appointment was made

The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured (correct)

The date of application

What action should Agent J take if the insurance company returns the check made out to him?

Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Signup and view all the answers

An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the?

Applicant's physician Signup and view all the answers

Information obtained from a phone conversation with the proposed insured can be found in which of these reports?

Inspection report Signup and view all the answers

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 initial premium Signup and view all the answers

From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant?

Fair Credit Reporting Act Signup and view all the answers

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when?

P receives the policy and pays the premium Signup and view all the answers

Which of the following statements is CORRECT about an agent who is taking an insurance application?

The agent should have the applicant initial any changes made on the application Signup and view all the answers

All of these are considered sources of underwriting information about an applicant EXCEPT?

Rating Services Signup and view all the answers

Which of these actions should a producer take when submitting an insurance application to an insurer?

Inform the insurer of relevant information not included on the application Signup and view all the answers

What is being delivered during a policy delivery?

Insurance contract to the proposed insured Signup and view all the answers

What action should the producer take if D explains recent health changes after a policy is delivered?

Collect initial premium along with a signed health statement Signup and view all the answers

Which of these terms accurately defines an underwriter's assessment of information on a life insurance application?

Risk classification Signup and view all the answers

Study Notes

Policy Delivery

Policy delivery options include mailing to the applicant, mailing to the agent, and direct delivery by the agent, but issuing a policy with a rating does not constitute delivery.

Underwriting Process

Key elements in the underwriting process include collecting credit reports, risk classification, and application reviews; however, policy loans are not part of this process.

Effective Date of Coverage

Coverage for a life insurance policy is effective when the agent delivers the policy, collects the initial premium, and obtains a good health statement from the insured. This can be after the initial application and check submission.

Handling Incorrect Checks

If a check is made out to the agent rather than the insurance company, the agent must return the check to the applicant and request a new check payable to the insurance company.

Medical Information Bureau (MIB)

Medical information from the MIB can only be shared with the applicant's physician, not with the agent, spouse, or other entities.

Reports in Underwriting

Information from phone conversations with the proposed insured is documented in the inspection report.

Non-medical Insurance Coverage

For non-medical insurance to take effect on the same day, the producer must collect both a signed application and the initial premium, forwarding it to the insurer immediately.

Disclosure Requirement

The Fair Credit Reporting Act mandates that insurance applications disclose the possibility of obtaining an investigative consumer report on the applicant.

Policy Effectiveness Without Initial Premium

Coverage for an applicant who does not provide an initial premium becomes effective once they receive the policy and pay the premium.

Application Process and Agent Responsibilities

Agents should have applicants initial any changes made on the application and avoid asking sensitive questions that may cause embarrassment.

Sources of Underwriting Information

Common sources for underwriting information include inspection reports and credit reports, while rating services do not count as a source.

Submitting Insurance Applications

When submitting an insurance application, producers should inform insurers of any relevant information not included on the application, rather than issuing binding receipts without the initial premium.

Policy Delivery Actions

The action taken during policy delivery involves providing the insurance contract to the proposed insured.

Change in Health Conditions

If an applicant has a recent change in health, such as seeing a doctor for chest pains, the producer must collect the initial premium along with a signed health statement before delivering the policy.

Risk Classification

Risk classification is defined as the underwriter's assessment of the information provided in a life insurance application, determining the level of risk the insurer is willing to cover.

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Description

This quiz covers crucial elements of life insurance policies, including the delivery methods, underwriting process, and effective coverage dates. It also addresses the handling of incorrect checks and the role of the Medical Information Bureau (MIB) in insurance applications.

Life Insurance Policy Processes