Easy Pay Insurance Company may require insureds who suffer a loss to submit a sworn statement to substantiate that a loss occurred and to describe the conditions under which the loss occurred. This sworn statement is called a(n) A) binder. B) proof of loss. C) inspection report. D) notice of loss. ANSWER Answer: […]
Date: September 19th, 2020
Which of the following statements about underwriting policy is (are) true? I. A company must establish an underwriting policy consistent with company objectives. II. Underwriting policy is usually subjective and allows the underwriter considerable flexibility with respect to lines written and forms used. A) I only B) II only C) both I and II D) […]
Date: September 19th, 2020
Insurers obtain data that can be used to determine rates from A) pricing pools. B) insurance advisory organizations. C) banks. D) reciprocal exchanges. ANSWER Answer: B
Date: September 19th, 2020
Common sources of underwriting information for life and health insurance include all of the following EXCEPT A) the application. B) a physical examination. C) the Medical Information Bureau. D) the applicant’s income tax return. ANSWER Answer: D
Date: September 19th, 2020
The underwriting process begins with the A) agent. B) desk underwriter. C) inspection report. D) actuary. ANSWER Answer: A
Date: September 19th, 2020
Which of the following statements about underwriting standards is (are) true? I. One purpose of underwriting standards is to reduce adverse selection against the insurer. II. Equitable rates should be charged so that each group of policyowners pays its own way in terms of losses and expenses. A) I only B) II only C) both […]
Date: September 19th, 2020
One source of life and health insurance underwriting information is an organization that life and health insurance companies can join. As a member, life and health insurance companies report health impairments of applicants, and this information is shared with member companies. Although the information is shared, the underwriting decision of the member company is not […]
Date: September 19th, 2020
If an underwriter suspects moral hazard, the underwriter may ask an outside firm to investigate the applicant and make a detailed report to the insurer. This report is called a(n) A) inspection report. B) application. C) M.I.B. report. D) agent’s report. ANSWER Answer: A
Date: September 19th, 2020
Which of the following statements about claims settlement is true? A) Agents are never authorized to settle claims. B) Independent adjustors may be used in a geographic area where the volume of business is too low for an insurer to have its own adjustors. C) A public adjustor is a salaried employee who works for […]
Date: September 19th, 2020
Which of the following is a function of the marketing department of an insurance company? A) to settle claims after a loss has been reported B) to determine the cost of products the insurer sells C) to make final underwriting decisions D) to identify production goals ANSWER Answer: D
Date: September 19th, 2020
