Chapter 1 Insurance Underwriting Quiz

Emma is training to become a field underwriter. Which of the following roles is she likely to take on?

• An agent

• An insurer

• An adjuster

• A company underwriter

Mia is considering purchasing a life insurance policy. When must insurable interest exist in life insurance?

• Death of the insured

• Policy delivery date

• Time of claim

• Application date

When Avery applied for a new insurance policy and did not receive a receipt, at what point is a statement of good health typically required?

• Application.

• Policy delivery.

• Policy renewal.

• The paramedic's report.

Michael is applying for health insurance and is concerned about his medical history. He learns about the Medical Information Bureau, which is

• A government entity that reviews medical information.

• An association of physicians who write insurance rules.

• A directory of paramedical services and providers.

• A source of medical information to alert insurers to adverse medical history.

James and Mia are entering into an insurance contract. In this context, consideration refers to

• A legal capacity.

• Exchange of something of value by both parties.

• Abiding by the laws of ethics.

• An act by one party in exchange for a promise by the other.

Over several years, Samuel paid $10,000 in premiums for his insurance policy. When he suffered a loss, the insurance company paid out $50,000 in benefits. What characteristic of an insurance contract does this describe?

• Unilateral

• Adhesion

• Conditional

• Aleatory

All the following may have an insurable interest in Samuel EXCEPT

• The spouse.

• Samuel's children.

• The employer.

• Samuel's best friend.

Michael is applying for a new insurance policy. Which of the following would be the main source of underwriting information used by the company in the risk selection process?

• Application

• Warranty

• MIB report

• Attending physician's statement

Emma submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin?

• When the policy is received

• After the free-look period

• On the date of the application

• On the date the policy is issued

Noah is working in the underwriting unit of an insurance company. What is his main responsibility?

• Controlling business written by new agents

• Marketing and solicitation of insurance

• Issuing policies

• Risk selection and classification