Completing the Application, Underwriting, Delivering Policies, Contract Law
A Texas life insurer asks an applicant to take an HIV-related test for underwriting. What must occur before the test?
Answer and explanation
Answer: A. Texas Insurance Code Chapter 545 requires the issuer to explain how the HIV-related test will be used and obtain written authorization. The authorization must use a form adopted by the commissioner and be separate from other documents presented to the applicant.Source: Texas Legislature — Texas Insurance Code Chapter 545 — § 545.053, Explanation and Written Authorization Required
More completing the application, underwriting, delivering policies, contract law questions
- An agent observes unusual funding behavior while selling a covered life product. What is the agent's proper AML role?
- An applicant applies without paying any premium. The insurer issues the policy exactly as requested. When is the contract formed?
- An applicant asks whether every answer on a life application is an absolute guarantee of literal accuracy. Which response is correct?
- An applicant attempts to purchase a single-premium $500,000 life policy using multiple cashier's checks under $10,000 from different banks. What action is the insurer required to take under AML rules?
- An applicant completes an application and pays the initial premium with it. In contract terms, what has the applicant done?
- An applicant gives an insurer a Social Security number and income information to obtain personal life coverage. How does the GLBA Privacy Rule generally classify that information?
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