Podcast
Questions and Answers
What is a field underwriter's main task?
What is a field underwriter's main task?
To ensure an applicant's medical information is accurate and complete
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT:
All of these are considered sources of information that can assist an underwriter in determining whether or not to accept a risk EXCEPT:
- Inspection reports
- National Association of Insurance Underwriters (correct)
- Agent's report
- Medical Information Bureau (MIB)
Which law do all insurers and their producers need to comply with to obtain personal information from a third party concerning an applicant?
Which law do all insurers and their producers need to comply with to obtain personal information from a third party concerning an applicant?
Fair Credit Reporting Act
What would be a valid reason why a policy premium would be higher than the standard premium?
What would be a valid reason why a policy premium would be higher than the standard premium?
What is likely to occur when life or health insurance is being applied for?
What is likely to occur when life or health insurance is being applied for?
In which of the following relationships would there NOT be an insurable interest?
In which of the following relationships would there NOT be an insurable interest?
What guarantees that the statements supplied by an insurance applicant are true?
What guarantees that the statements supplied by an insurance applicant are true?
An attending physician's statement would be appropriate for what purpose in life insurance?
An attending physician's statement would be appropriate for what purpose in life insurance?
What is required for a change in an insurance application?
What is required for a change in an insurance application?
What does a life insurance policy summary normally include?
What does a life insurance policy summary normally include?
Why are preferred risk policies with reduced premiums issued by insurance companies?
Why are preferred risk policies with reduced premiums issued by insurance companies?
What is an insurance applicant with a below-average likelihood of loss typically considered to be?
What is an insurance applicant with a below-average likelihood of loss typically considered to be?
Which term describes a person who is NOT acceptable by an insurer at standard rates due to health history, occupation, or hobbies?
Which term describes a person who is NOT acceptable by an insurer at standard rates due to health history, occupation, or hobbies?
What risk classification would a person who is a nonsmoker, of average weight, and in excellent health most likely fall under?
What risk classification would a person who is a nonsmoker, of average weight, and in excellent health most likely fall under?
What is it called when an applicant intentionally lies on an insurance application to obtain a cheaper premium?
What is it called when an applicant intentionally lies on an insurance application to obtain a cheaper premium?
Which of these is NOT considered to be a risk factor in life insurance underwriting?
Which of these is NOT considered to be a risk factor in life insurance underwriting?
How does an insurer have the right to screen applicants for HIV?
How does an insurer have the right to screen applicants for HIV?
What does field underwriting performed by the producer involve?
What does field underwriting performed by the producer involve?
What is an underwriter's primary responsibility to an insurer?
What is an underwriter's primary responsibility to an insurer?
Study Notes
Underwriting Responsibilities
- A field underwriter ensures accuracy and completeness of an applicant's medical information.
- Field underwriting includes completing applications and collecting initial premiums.
Sources of Information
- Common sources for underwriters include agent reports, Medical Information Bureau (MIB), and inspection reports.
- The National Association of Insurance Underwriters is NOT considered a source of information for underwriting decisions.
Legal Compliance
- Insurers must comply with the Fair Credit Reporting Act when obtaining personal information about applicants from third parties.
Premium Determinants
- Higher policy premiums may result from an applicant not meeting established underwriting requirements.
Medical History Review
- Life or health insurance applications typically involve a review of the insured's medical history.
Insurable Interest
- A business owner does NOT have insurable interest in their business customer.
Truthfulness of Statements
- A warranty guarantees that all statements made by an insurance applicant are true.
Attending Physician's Statement
- An attending physician's statement assists insurers in the underwriting decision process upon request.
Application Changes
- Any changes to an insurance application require an initial from the applicant.
Policy Summary Components
- A life insurance policy summary generally includes the policy's cash value.
Risk Classifications
- Preferred risk policies are issued at reduced premiums due to the insured's better-than-average mortality or morbidity experience.
- An insurance applicant with below-average loss likelihood is designated as a preferred risk.
- A person deemed substandard risk is not accepted at standard rates due to health history, occupation, or hobbies.
- A nonsmoker in excellent health is classified as a preferred risk.
Fraudulent Activities
- An applicant lying on an insurance application for cheaper premiums exemplifies fraud.
Risk Factors
- The number of children is NOT regarded as a risk factor in life insurance underwriting.
Screening Applicants for HIV
- Insurers have the right to screen applicants for HIV through blood tests.
Adverse Selection
- An underwriter's main responsibility to the insurer is protecting against adverse selection.
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Description
This quiz covers key concepts related to underwriting responsibilities, sources of information, legal compliance, and premium determinants. It focuses on the essential knowledge required for effective underwriting in the insurance industry. Test your understanding of these critical aspects to ensure compliance and accuracy in the underwriting process.
