Chapter21 Questions with complete solution 2024/2024
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Course
WCJC
Institution
WCJC
Chapter21 Questions with complete solution 2024/2024 Chapter 2
Gerald has a chronic medical condition. What will his risk classification be? How will his premium be affected?
a. Gerald's risk classification will be preferred. His premium will be higher.
b. Gerald's risk classification will be...
Chapter 2
Gerald has a chronic medical condition. What will his risk classification be?
How will his premium be affected?
a. Gerald's risk classification will be preferred. His premium will be higher.
b. Gerald's risk classification will be standard. His premium will be lower.
c. Gerald's risk classification will be substandard. His premium will be higher.
d. Gerald will be denied coverage. - correct answer ✔c. Gerald's risk
classification will be substandard. His premium will be higher.
This employee of the insurer assigns risk categories to applicants:
Select one:
a. Broker
b. Agent
c. Underwriter
d. Actuary - correct answer ✔c. Underwriter
Rates for insurance policies are based on:
Select one:
a. Marital status and age
b. Sex, age and marital status
c. Sex and age
d. Sex only - correct answer ✔c. Sex and age
Which of the following best describes a life insurance policy in which the
proposed insured is not required to undergo a medical examination?
Select one:
,a. Easy policy
b. Simply-issued policy
c. Simplified issue
d. Standard coverage policy - correct answer ✔c. Simplified issue
Which of the following is the primary source of information used in
underwriting an insurance policy?
a. Attending physician statement
b. Application
c. Agent report
d. Medical Information Bureau - correct answer ✔b. Application
Which of the following best describes the MIB?
Select one:
a. Nonprofit trade organization that supplies insurability information to member
companies
b. Government agency that collects information about individuals' life and
health insurance policies
c. State organization that catalogs individuals' life and health insurance claims
d. Group of federally-appointed physicians that monitor the medical
treatments received by individuals insured by private companies - correct
answer ✔a. Nonprofit trade organization that supplies insurability information
to member companies
Which of the following best describes the process used to select and classify
risks?
Select one:
a. Rating
, b. Discrimination
c. Risk classification
d. Underwriting - correct answer ✔d. Underwriting
Part II of the life insurance application includes:
Select one:
a. The agent's statement or report
b. Medical Information
c. General Information
d. Inspection Statement - correct answer ✔b. Medical Information
All of the following are involved in the collection of an applicant's medical
history, EXCEPT:
Select one:
a. The application for the insurance policy
b. The attending physician statement
c. The agent report
d. The consumer report - correct answer ✔d. The consumer report
Insurance agent Margaret receives life insurance applications from Tim and
Tom, who are identical twins, and are each applying for the exact same type
of policy with the same face amount. The insurance company issues the
policies as applied for, but charges Tom a 15% higher premium. Which of the
following best explains the higher premium charged to Tom?
Select one:
a. Longer free look period
b. Insuring clause
c. Tom had to undergo a medical examination
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