Questions and Answers
What are members of the Medical Information Bureau (MIB) required to report?
Medical ailments discovered during the underwriting process
Which of the following is NOT an important reason for a life insurance application?
The Medical Information Bureau consists of?
Life and health insurance companies
Which of the following types of information is NOT required for a life insurance application?
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An applicant has revealed conditions that require more information. What is needed next?
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A report which is based on creditworthiness and personal characteristics that influences an insurance applicant's eligibility for life and health insurance is called a(n)?
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The objective of underwriting is to?
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Most U.S. life insurance companies belong to the?
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When an applicant applies for insurance, what is the process by which the insurer determines whether to issue a policy called?
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Which of the following is NOT a risk classification that an underwriter would use?
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Study Notes
Medical Information Bureau (MIB)
- Members are required to report medical ailments discovered during the underwriting process.
- Consists primarily of life and health insurance companies in the U.S.
- Nearly every life insurer in the United States is a member of the MIB.
Life Insurance Application
- Important for verifying health and determining eligibility for coverage.
- Does NOT require the beneficiary's signature prior to issuing a policy.
- Does NOT require ethnicity information for the application process.
Underwriting Process
- Underwriting is the process of determining whether to issue a policy to an applicant.
- Aims to avoid selecting a disproportionate amount of bad risks.
- Underwriters classify risks, excluding "Dividend Risk" as a classification category.
Additional Information Requirements
- When applicants reveal conditions needing clarification, an Attending Physician's Statement (APS) is required.
- Applicants must sign a release to obtain the APS.
Consumer Report
- A consumer report influences insurance eligibility based on an applicant's creditworthiness and personal characteristics.
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Description
Explore the critical aspects of the underwriting process for life insurance applications. This quiz covers the roles of the Medical Information Bureau (MIB), reporting requirements, and the importance of an Attending Physician's Statement (APS). Test your knowledge on how health affects insurance eligibility and the classification of risks.
