TEXAS LIFE AND HEALTH: FIELD UNDERWRITING

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TEXAS LIFE AND HEALTH: FIELD UNDERWRITING

PROCEDURES EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -17 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What is the term used for an applicant's written request to an insurer for the company to issue a contract, based on the information provided?

Answer:

Application Question 2: An agent makes a mistake on the application and then corrects his mistake by physically entering the necessary information. Who must then intial that change?

Answer:

Applicant Question 3: An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?

Answer:

Ask her to sign a statement of good health - if the premium is not collected until the policy is delivered, the agent must receive a statement of good health, which acknowledges that the insured's health status has not changed since the policy was approved.

Question 4: An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insuer done by this point?

Answer:

neither approved the application nor issued the policy - when the agent receives the application and issues a conditional receipt, the insurer has not yet approved the application and issued the policy Question 5: under the Privacy Rule for HIPAA, protected information includes all individually identifiable health information

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held or transmitted in any form Question 6: Who must pay for the cost of medical examination required in the process of underwriting?

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Insurer Question 7: The insurance policy, together with the policy application and any added riders form what is known as

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Entire contract Question 8: in a replacement situation, all of the following must be considered EXCEPT

Answer:

Assets

Question 9: Which of the following entities can legally bind coverage?

Answer:

Insurer

Question 10: Which is true regarding obtaining underwriting sources?

Answer:

The applicant must be informed of the sources contacted and how the information is being gathered

Question 11: To comply with Fair Credit Reporting Act, when must a poducer notify an applicant that a credit report may be requested?

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At the time of application Question 12: Underwriting is a major consideration when an insured wishes to replace her current policy for all of the following reasons EXCEPT

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Premiums always stay the same Question 13: Which of the following is true regarding health insurance underwirting for a person with HIV?

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The person may not be declined for medical coverage solely based on HIV status Question 14: Which of the following is true about the requirements regarding HIV exams?

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The applicant must give prior informed written consent Question 15: If an applicant does not received a new insurance policy, who would be held responsible?

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The Agent Question 16: An agent is in the process of replacing the insured's current health insurance policy with a new one. Which of the following would be a proper action?

Answer:

The old policy should stay in force until the new policy is issued.Question 17: When deliverying a policy, which of the following is an agent's responsibility?

Answer:

Collect payment at the time of delivery