Underwriting evaluates an applicant's risk and determines whether and on what terms coverage may be issued.
Example: A client or producer applies this rule in a policy situation. The correct concept is Risk selection and classification. Underwriting evaluates an applicant's risk and determines whether and on what terms coverage may be issued.
PTH original exam-prep item • Original practice item
The application is the primary initial source of information for underwriting.
Example: A client or producer applies this rule in a policy situation. The correct concept is The application. The application is the primary initial source of information for underwriting.
PTH original exam-prep item • Original practice item
The producer gathers and submits information and may report observations relevant to underwriting.
Example: A client or producer applies this rule in a policy situation. The correct concept is Collects application information and observes the applicant. The producer gathers and submits information and may report observations relevant to underwriting.
PTH original exam-prep item • Original practice item
Incomplete applications should be completed rather than having the producer or insurer invent missing information.
Example: A client or producer applies this rule in a policy situation. The correct concept is Return it for completion. Incomplete applications should be completed rather than having the producer or insurer invent missing information.
PTH original exam-prep item • Original practice item
MIB is an insurance-industry information source used to help detect omissions and inconsistencies in underwriting.
Example: A client or producer applies this rule in a policy situation. The correct concept is MIB. MIB is an insurance-industry information source used to help detect omissions and inconsistencies in underwriting.
PTH original exam-prep item • Original practice item
Corrections should be documented and acknowledged by the applicant according to insurer procedure.
Example: A client or producer applies this rule in a policy situation. The correct concept is Have the applicant initial the correction or complete a new application. Corrections should be documented and acknowledged by the applicant according to insurer procedure.
PTH original exam-prep item • Original practice item
FCRA establishes requirements for obtaining and using consumer reports and providing required notices.
Example: A client or producer applies this rule in a policy situation. The correct concept is Consumer reports. FCRA establishes requirements for obtaining and using consumer reports and providing required notices.
PTH original exam-prep item • Original practice item
Conditional receipts provide limited interim protection only when their stated conditions are met.
Example: A client or producer applies this rule in a policy situation. The correct concept is The stated receipt conditions are satisfied. Conditional receipts provide limited interim protection only when their stated conditions are met.
PTH original exam-prep item • Original practice item
Investigative consumer reports can include interviews with associates about reputation, habits, and lifestyle, subject to law.
Example: A client or producer applies this rule in a policy situation. The correct concept is Interviews about the applicant's character and lifestyle. Investigative consumer reports can include interviews with associates about reputation, habits, and lifestyle, subject to law.
PTH original exam-prep item • Original practice item
When coverage was not effective earlier, delivery conditions may include premium payment and confirmation that insurability has not materially changed.
Example: A client or producer applies this rule in a policy situation. The correct concept is Any required statement of continued good health or other delivery condition. When coverage was not effective earlier, delivery conditions may include premium payment and confirmation that insurability has not materially changed.
PTH original exam-prep item • Original practice item