Insurance Application and Underwriting Practice Exam

Practice flashcards covering life and health insurance application processes, underwriting sources, and policy documentation.

What is an applicant intentionally lying to an insurance company on an application to obtain a cheaper premium called?

fraud

Which hobby do most life insurance policies commonly exclude from coverage?

An individual who has a hobby racing cars once a month

Which of the following is NOT a typical source of underwriting information for life or health insurance?

Disclosure authorization response

What are three common sources of underwriting information used for life or health insurance?

Consumer reports, Medical Information Bureau (MIB) reports, and Attending physician's statement (APS)

What happens if a life insurance applicant dies the day after receiving a conditional receipt from an agent?

The claim will be paid if the application is approved.

Which individual's signature is NOT required on an individual insurance application?

Insurer

From which party is a producer NOT required to obtain a signature for an insurance application?

The beneficiary

Typically, how many months can a life insurance policy be backdated from the application date?

6 months

Which state is an exception to the standard 6-month backdating rule, allowing only up to 3 months?

Ohio

Who requests an attending physician's statement (APS) to assist in the underwriting decision?

The insurer

What document specifies the critical segments of an insured's life insurance policy?

Policy summary

Is an applicant's medical history relevant when applying for life or health insurance?

Yes; the applicant's medical history may be analyzed and reported.