Life Insurance Basics
An applicant presents better than average health and habits. Into which class is she ordinarily placed?
Answer and explanation
Answer: D. A preferred class reflects health and habits better than the average on which standard rates are built, so the premium is lower. Standard is the ordinary class, substandard carries an extra charge for greater risk, and declined means the insurer will not offer coverage.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, classification of risks
More life insurance basics questions
- An owner paying annually dies four months into the policy year. What happens to the unearned part of that premium?
- An underwriter wants records from the applicant's doctor. What must be in place first?
- At delivery the applicant discloses a hospital admission that occurred after the application was signed. What follows?
- During a sales presentation a producer urges a client to drop an existing policy for a new one using incomplete comparisons. What practice is that?
- During policy delivery, the owner notices a typo in the beneficiary's middle name. How should the producer assist?
- From what event does the free look period on a delivered life policy run?
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