1
Adverse SelectionGLOSSARY
The tendency of higher-risk individuals to be more likely to seek or retain insurance.
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Chapter 4
KEYWORDS | TỪ KHÓA
Prior to reading this chapter, please review the following keywords. An understanding of their basic definitions will improve your comprehension of the chapter content.
Life Insurance Underwriting & Field Underwriting2
ApplicationGLOSSARY
The document containing information used by the insurer to evaluate a proposed insured and requested coverage.
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3
Attending Physician StatementGLOSSARY
A report from an applicant’s or insured’s physician used as a medical underwriting information source.
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4
ConfidentialityGLOSSARY
The duty to keep private information appropriately restricted and protected.
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5
Consumer ReportGLOSSARY
A report containing consumer information that may be used in underwriting subject to applicable law.
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6
Fair Credit Reporting ActGLOSSARY
A federal law governing consumer-report information and related notice and disclosure responsibilities.
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7
Field UnderwritingGLOSSARY
The producer’s role in gathering accurate information, observing relevant facts, and helping the insurer evaluate an application.
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8
Financial UnderwritingGLOSSARY
Evaluation of whether the amount and purpose of requested coverage are financially reasonable.
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9
Flat Extra PremiumGLOSSARY
An additional fixed premium charge used for certain extra hazards or substandard risks.
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10
MIBGLOSSARY
An industry information source used by insurers as part of underwriting; it is not a consumer credit report.
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11
Preferred RiskGLOSSARY
A risk classification for applicants expected to have more favorable mortality than standard risks.
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12
PrivacyGLOSSARY
The obligation to protect personal and underwriting information from improper disclosure or use.
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13
Risk ClassificationGLOSSARY
The underwriting category assigned to an applicant based on the evaluated level of risk.
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14
Standard RiskGLOSSARY
A risk classification for applicants who fit the insurer’s normal underwriting expectations.
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15
Substandard RatingGLOSSARY
An underwriting adjustment used when an applicant presents higher-than-standard risk.
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16
Substandard RiskGLOSSARY
A risk classification for applicants presenting higher-than-standard risk and who may be rated or charged a higher premium.
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17
Table RatingGLOSSARY
A method of charging an increased premium for a substandard risk according to a rating table.
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18
UnderwritingGLOSSARY
The process of evaluating risk, determining acceptability, and assigning the appropriate premium class.
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🧠 QUICK MEMORY TIPS | MẸO HỌC NHANH
Study Smarter!1
Adverse SelectionThe tendency of higher-risk individuals to be more likely to…
2
ApplicationThe document containing information used by the insurer to evaluate…
3
Attending Physician StatementA report from an applicant’s or insured’s physician used as…
4
ConfidentialityThe duty to keep private information appropriately restricted and protected.
5
Consumer ReportA report containing consumer information that may be used in…
6
Fair Credit Reporting ActA federal law governing consumer-report information and related notice and…
7
Field UnderwritingThe producer’s role in gathering accurate information, observing relevant facts,…
8
Financial UnderwritingEvaluation of whether the amount and purpose of requested coverage…
9
Flat Extra PremiumAn additional fixed premium charge used for certain extra hazards…
10
MIBAn industry information source used by insurers as part of…
11
Preferred RiskA risk classification for applicants expected to have more favorable…
12
PrivacyThe obligation to protect personal and underwriting information from improper…
13
Risk ClassificationThe underwriting category assigned to an applicant based on the…
14
Standard RiskA risk classification for applicants who fit the insurer’s normal…
15
Substandard RatingAn underwriting adjustment used when an applicant presents higher-than-standard risk.
16
Substandard RiskA risk classification for applicants presenting higher-than-standard risk and who…
17
Table RatingA method of charging an increased premium for a substandard…
18
UnderwritingThe process of evaluating risk, determining acceptability, and assigning the…