Life Insurance Policies
How is credit life insurance usually underwritten?
Answer and explanation
Answer: C. Amounts are small and terms short, so credit life is written with minimal underwriting, often no more than a few questions or none at all. Credit standing bears on the loan rather than on the mortality risk.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, credit life underwriting
More life insurance policies questions
- Which description best distinguishes indexed universal life from variable universal life?
- Which elements does a continuous premium whole life policy guarantee?
- Which event gives rise to the conversion right under section 3220?
- Which is the most common type of group life plan sponsor?
- Who holds the contract in a group life insurance arrangement, and what does the member receive?
- Who receives the proceeds of a credit life policy when the borrower dies?
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